EXHIBIT 3a(i)
 
 
                      RESTATED CERTIFICATE OF INCORPORATION
                                       OF
                                TANDY CORPORATION
 
        This Restated  Certificate of  Incorporation  of Tandy  Corporation (the
"Corporation")  was duly  approved by the Board of Directors of the  Corporation
and only restates and  integrates  but does not further amend the  provisions of
the  Corporation's  Certificate  of  Incorporation,  as  heretofore  amended  or
supplemented; and there is no discrepancy between the provisions of the original
Certificate of Incorporation,  as amended or supplemented, and the provisions of
the Restated Certificate of Incorporation set forth below except as permitted by
Section  245 of  the  General  Corporation  Law.  The  original  Certificate  of
Incorporation  of the  Corporation  was filed with the Secretary of State of the
State of Delaware on December 19, 1967.
 
        FIRST: The name of the corporation (hereinafter referred to as the
"Corporation") is TANDY CORPORATION.
 
        SECOND:The registered office of the Corporation in the State of Delaware
is located  at 1209  Orange  Street,  in the City of  Wilmington,  County of New
Castle, Delaware 19801. The registered agent in charge thereof upon whom process
against the Corporation may be served, is The Corporation Trust Company.
 
        THIRD: The nature of the business of the Corporation and the objects and
purposes to be transacted, promoted and carried on by it are as follows:
 
        (a) To carry on a general business as manufacturers  and merchants,  and
to manufacture,  produce,  finish,  treat, cure, tan or otherwise process,  buy,
sell, import,  export and generally trade and deal in and with any and all kinds
of materials, goods, wares and merchandise.
 
        (b) To subscribe for or cause to be subscribed for, to purchase,  invest
in, acquire,  hold, own, sell, assign,  transfer,  mortgage,  pledge,  exchange,
distribute or otherwise dispose of the whole or any part of the shares of stock,
bonds, mortgages, debentures, notes, coupons and other securities,  obligations,
contracts,  and  evidences  of  indebtedness  of any  corporation,  domestic  or
foreign,  and to issue in exchange therefor its shares of stock,  bonds or other
obligations;  to exercise in respect to any such shares of stock, bonds or other
securities,  any and all rights,  powers and privileges of individual  owners or
holders,  including the right to vote thereon and to aid in any manner permitted
by law any corporation or association of which any bonds or other  securities or
evidences of  indebtedness or stock are held by the  Corporation,  and to do any
acts or things designed to protect,  preserve,  improve, or enhance the value of
any such stock,  bonds or other securities or evidences of indebtedness,  and to
organize or promote or facilitate the organization of subsidiary companies.
 
        (c) To buy, lease or otherwise acquire the goodwill, franchises, rights,
and property, both real, personal and mixed, of any person, firm, association or
corporation,  and to pay for the same in cash, property,  stocks or bonds of the
Corporation  or  otherwise  and to hold and use or in any manner  dispose of the
whole or any part of the property so acquired;  to conduct,  carry on,  operate,
manage,  control,  improve and develop the whole or any part of any  business or
property so acquired,  either in the name of such other person or persons,  firm
or  corporation,  and to exercise all the powers  necessary or convenient in and
about the conduct and management of such business.
 
        (d) To engage in any lawful act or activity for which  corporations  may
be organized under the General Corporation Law of the State of Delaware.
 
        (e) To do any and all things  necessary,  suitable,  useful or proper in
the  accomplishment  of any of the  purposes and powers  hereinabove  set forth,
either as  principal  or as  agent,  and in  connection  therewith  to  maintain
offices,  to appoint  agents,  to make  contracts,  to borrow money, to acquire,
hold, mortgage, pledge, lease, sell, grant licenses with respect to or otherwise
dispose  of real and  personal  property,  and to do any and all other  acts and
things,  all to the same extent and as fully as natural  persons  might or could
lawfully do in any part of the world,  but only within the limits  permitted  to
corporations organized under General Corporation Law of Delaware.
 
        The foregoing  enumeration of purposes,  powers and objects shall not be
deemed to limit or restrict in any manner the general powers of the  Corporation
under  the  General  Corporation  Law of  Delaware  or the  laws  of any  state,
territory,  district or foreign  country where the Corporation may be authorized
to do business.
 
        FOURTH:The  total  number of shares  which the  Corporation  shall  have
authority to issue is two hundred fifty-one  million  (251,000,000) of which one
million  (1,000,000)  shares without par value shall be Preferred  Stock and two
hundred  fifty  million  (250,000,000)  shares  of the par  value of one  dollar
($1.00) per share shall be Common  Stock.  The  Preferred  Stock shall be issued
from  time  to  time  in  one  or  more  series  with  such  distinctive  serial
designations  and (a) may have such voting  powers,  full or limited,  or may be
without  voting  powers;  (b) may be subject to redemption at such time or times
and at such  prices;  (c) may be  entitled  to receive  dividends  (which may be
cumulative or noncumulative)  at such rate or rates, on such conditions,  and at
such times,  and payable in preference to, or in such relation to, the dividends
payable on any other  class or classes of stock;  (d) may have such  rights upon
the dissolution of, or upon any  distribution of the assets of, the Corporation;
(e) may be made convertible into, or exchangeable for, shares of any other class
or classes or of any other  series of the same or any other  class or classes of
stock of the Corporation, at such prices or prices or at such rates of exchange,
and  with  such   adjustments;   and  (f)  shall  have  such   other   relative,
participating, optional or other special rights, qualifications,  limitations or
restrictions  thereof,  all as shall  hereinafter be stated and expressed in the
resolution or resolutions  providing for the issue of such Preferred  Stock from
time to time  adopted by the Board of  Directors  pursuant to authority so to do
which is hereby granted to and vested in the board.
 
        Each share of Common Stock shall entitle the holder thereof to one vote,
in  person or by  proxy,  at any and all  meetings  of the  stockholders  of the
Corporation.
 
        No stockholder,  as such,  shall have any preemptive  right to subscribe
for or purchase any additional shares of stock or securities convertible into or
carrying warrants or options to acquire shares of stock of the Corporation.
 
        Any and all  right,  title,  interest  and claim in or to any  dividends
declared by the  Corporation,  whether in cash,  stock or  otherwise,  which are
unclaimed by the  stockholder  entitled  thereto for a period of six years after
the  close  of  business  on the  payment  date,  shall be and be  deemed  to be
extinguished  and abandoned;  and such unclaimed  dividends in the possession of
the Corporation,  its transfer agents or other agents or depositaries,  shall at
such time become the absolute property of the Corporation, free and clear of any
and all claims of any persons whatsoever.
 
        A.     Series A Junior Participating Preferred Stock
 
               Section 1.    Designation, Par Value and Amount.
 
               There  shall be a series of  preferred  stock of the  Corporation
designated as the "Series A Junior  Participating  Preferred Stock," without par
value (the "Series A Preferred  Stock"),  and the number of shares  constituting
such  series  shall be  300,000.  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 that of the shares then outstanding plus the number of shares issuable upon
exercise  of  outstanding  rights,  options or warrants  or upon  conversion  of
outstanding securities issued by the Corporation.
 
               Section 2.    Dividends and Distributions.
 
               (A)  Subject to the prior and  superior  rights of the 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  dividends,  the holders of
shares of Series A Preferred  Stock,  in  preference to the holders of shares of
Common Stock, par value $1.00 per share, of the Corporation and any other junior
stock,  shall be entitled to receive,  when,  as and if declared by the Board of
Directors out of funds legally  available for the purpose,  quarterly  dividends
payable in cash on the fifteenth 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)
$500 or (b) 10,000 times the aggregate per share amount (payable in kind) of all
non-cash  dividends  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 after July 26,  1999,  (i) declare any  dividend on the Common
Stock payable in Common Stock,  (ii) subdivide the outstanding  Common Stock, or
(iii) combine or consolidate the outstanding  Common Stock into a smaller number
of  shares,  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) above  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 $500 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  of  Series A
Preferred Stock,  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  of holders of shares of
Series  A  Preferred  Stock  entitled  to  receive  payment  of  a  dividend  or
distribution declared thereon,  which record date shall be not more than 60 days
prior to the date fixed for the payment thereof.
 
               Section 3.    Voting Rights.  The holders of shares of Series A
Preferred Stock shall have the following voting rights:
 
               (A) Each share of Series A  Preferred  Stock  shall  entitle  the
holder  thereof  to  10,000  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 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 at any time dividends on any Series A Preferred Stock,
shall be in arrears in an amount equal to six (6) quarterly  dividends  thereon,
the  occurrence  of such  contingency  shall mark the  beginning  of a period (a
"default period") which shall extend until such time when all accrued and unpaid
dividends  for all  previous  quarterly  dividend  periods  and for the  current
quarterly  dividend  period  on all  shares of Series A  Preferred  Stock,  then
outstanding  shall have been declared and paid or set apart for payment.  During
each default period,  the holders of the Series A Preferred Stock with dividends
in arrears in an amount equal to six (6) quarterly dividends thereon,  voting as
a class, shall have the right to elect two (2) directors.
 
               (ii) During any default period,  such voting right of the holders
of Series A Preferred  Stock may be  exercised  initially  at a special  meeting
called  pursuant to  subparagraph  (iii) of this  Section  3(C) or at any annual
meeting of  stockholders,  and  thereafter at annual  meetings of  stockholders,
provided  that  neither  such  voting  right nor the right of the holders of any
other series of preferred  stock,  if any, to increase,  in certain  cases,  the
authorized  number of  directors  shall be  exercised  unless the holders of ten
percent (10%) in number of shares of Series A Preferred Stock  outstanding shall
be present  in person or by proxy.  The  absence  of a quorum of the  holders of
Common  Stock shall not affect the exercise by the holders of Series A Preferred
Stock of such  voting  right.  At any  meeting at which the  holders of Series A
Preferred  Stock shall exercise such voting right  initially  during an existing
default period, they shall have the right, voting as a class, to elect directors
to fill such  vacancies,  if any, in the Board of Directors as may then exist up
to two (2)  directors,  or if such right is exercised at an annual  meeting,  to
elect two (2)  directors.  If the number of directors  that may be so elected at
any special meeting does not amount to the required  number,  the holders of the
Series A  Preferred  Stock  shall  have the right to make such  increase  in the
number of  directors as shall be necessary to permit the election by them of the
required  number.  After the holders of the Series A Preferred  Stock shall have
exercised  their right to elect  directors in any default  period and during the
continuance  of such period,  the number of directors  shall not be increased or
decreased  except by vote of the holders of Series A  Preferred  Stock as herein
provided or pursuant to the rights of any equity securities ranking senior to or
pari passu with the Series A Preferred Stock.
 
               (iii)  Unless the  holders  of Series A  Preferred  Stock  shall,
during an existing  default  period,  have  previously  exercised their right to
elect  directors,  the Board of  Directors  may  order,  or any  stockholder  or
stockholders  owning in the  aggregate  not less than ten  percent  (10%) of the
total number of shares of Series A Preferred Stock outstanding,  irrespective of
series, may request, the calling of a special meeting of the holders of Series A
Preferred  Stock,  which  meeting  shall  thereupon  be called by the  Chairman,
President,  a  Vice-President  or the  Corporate  Secretary of the  Corporation.
Notice of such  meeting and of any annual  meeting at which  holders of Series A
Preferred  Stock are entitled to vote pursuant to this paragraph  (C)(iii) shall
be given to each holder of record of Series A Preferred  Stock by mailing a copy
of such notice to him or her at his or her last  address as the same  appears on
the  books of the  Corporation.  Such  meeting  shall be  called  for a time not
earlier  than 10 days and not later  than 60 days after such order or request or
in default of the  calling  of such  meeting  within 60 days after such order or
request,  such  meeting may be called on similar  notice by any  stockholder  or
stockholders  owning in the  aggregate  not less than ten  percent  (10%) of the
total number of shares of Series A Preferred Stock outstanding.  Notwithstanding
the  provisions of this  paragraph  (C)(iii),  no such special  meeting shall be
called during the period within 60 days immediately preceding the date fixed for
the next annual meeting of the stockholders.
 
               (iv) In any  default  period,  the holders of Common  Stock,  and
other classes of stock of the  Corporation if  applicable,  shall continue to be
entitled to elect the whole  number of  directors  until the holders of Series A
Preferred  Stock shall have  exercised  their  right to elect two (2)  directors
voting as a class,  after the  exercise  of which  right  (x) the  directors  so
elected by the  holders of Series A  Preferred  Stock  shall  continue in office
until  their  successors  shall have been  elected by such  holders or until the
expiration of the default period,  and (y) any vacancy in the Board of Directors
may  (except as provided in  paragraph  (C)(ii) of this  Section 3) be filled by
vote of a majority of the remaining directors  theretofor elected by the holders
of the class of stock which elected the director  whose office shall have become
vacant.  References in this paragraph (C) to directors elected by the holders of
a particular class of stock shall include directors elected by such directors to
fill vacancies as provided in clause (y) of the foregoing sentence.
 
               (v) Immediately upon the expiration of a default period,  (x) the
right of the holders of Series A Preferred  Stock, as a class to elect directors
shall cease,  (y) the term of any  directors  elected by the holders of Series A
Preferred  Stock as a class  shall  terminate,  and (z) the number of  directors
shall be such number as may be provided  for in, or  pursuant  to, the  Restated
Certificate  of  Incorporation  or  Bylaws  irrespective  of any  increase  made
pursuant to the  provisions of paragraph (C) (ii) of this Section 3 (such number
being subject,  however to change thereafter in any manner provided by law or in
the Restated Certificate of Incorporation or Bylaws). Any vacancies in the Board
of Directors  effected by the provisions of clauses (y) and (z) in the preceding
sentence  may be filled by a majority of the  remaining  directors,  even though
less than a quorum.
 
               (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.
 
               Section 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 on the Series A Preferred
Stock and all such parity stock on which dividends  are payable or in arrears in
proportion  to the total  amounts as 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;
 
                      (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 (either as to dividends or upon liquidation,  dissolution or
winding  up) 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.
 
               Section 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 canceled 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 to be  created by  resolution  or  resolutions  of the Board of
Directors,  subject to the  conditions  and  restrictions  on issuance set forth
herein, in the Restated  Certificate of Incorporation,  in any other Certificate
of Designations,  Preferences and Rights creating a series of Preferred Stock or
as otherwise required by law.
 
               Section 6.    Liquidation, Dissolution or Winding Up.
 
               (A) With respect to any  liquidation,  dissolution  or winding up
(voluntary or otherwise) of the  Corporation,  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 $10,000 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 "Common  Adjustment")  equal to the quotient obtained by dividing (i)
the Series A Liquidation  Preference by (ii) 10,000 (such number in clause (ii),
the "Adjustment Number"). Following the payment of the full amount of the Series
A Liquidation Preference and the Common 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 shares 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  to  their  respective
liquidation  preferences.  In the event,  however, that there are not sufficient
assets available to permit payment in full of the Common  Adjustment,  then such
remaining assets shall be distributed ratably to the holders of Common Stock.
 
               (C) In the event the Corporation shall at any time after July 26,
1999, (i) declare any dividend on the Common Stock payable in Common Stock, (ii)
subdivide the  outstanding  Common Stock,  or (iii) combine or  consolidate  the
outstanding Common Stock into a smaller number of shares, then in each such case
the  Adjustment  Number  in  effect  immediately  prior to such  event  shall be
adjusted by multiplying  such  Adjustment  Number 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  Common  Stock  that were
outstanding immediately prior to such event.
 
               Section 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 the shares
of Series A Preferred  Stock shall at the same time be  similarly  exchanged  or
changed in an amount per share  equal to 10,000  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 after July 26, 1999,
(i)  declare any  dividend on the Common  Stock  payable in Common  Stock,  (ii)
subdivide the  outstanding  Common Stock,  or (iii) combine or  consolidate  the
outstanding Common Stock into a smaller number of shares, 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 are  outstanding  immediately
prior to such event.
 
               Section 8.    No Redemption.  The shares of Series A Preferred
Stock shall not be redeemable.
 
               Section 9.  Ranking.  The  Series A  Preferred  Stock  shall rank
junior to all other series of the Corporation's Preferred Stock as to payment of
dividends and the  distribution  of assets,  unless the terms of any such series
shall provide otherwise.
 
               Section 10. Amendment.  The Restated Certificate of Incorporation
of the  Corporation  shall not be  further  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 (66 2/3%) or more of the outstanding
shares of Series A Preferred Stock, voting together as a single class.
 
               Section 11.  Fractional  Shares.  Series A Preferred Stock may be
issued in  fractions  of a share,  which  are one  ten-thousandths  or  integral
multiples of one  ten-thousandths of a share, which shall entitle the holder, in
proportion  to such  holder's  fractional  shares,  to exercise  voting  rights,
receive  dividends,  participate in distributions and to have the benefit of all
other rights of holders of Series A Preferred Stock.
 
        B.     Series B TESOP Convertible Preferred Stock
 
        Section 1.   Designation and Amount; Special Purpose Restricted Transfer
 Issue.
 
               (A) The  shares  of this  series  of  Preferred  Stock  shall  be
designated as Series B TESOP  Convertible  Preferred  Stock ("Series B Preferred
Stock") and the number of shares  constituting  such series shall be one hundred
thousand (100,000) shares.
 
               (B) Shares of Series B Preferred  Stock shall be issued only to a
trustee acting on behalf of an employee  stock  ownership plan or other employee
benefit plan of the Company.  In the event of any transfer of shares of Series B
Preferred  Stock to any person  other than the  issuance  of Series B  Preferred
Stock to any such  plan  trustee,  the  shares of  Series B  Preferred  Stock so
transferred, upon such transfer and without any further action by the Company or
the holder,  shall be  automatically  converted  into shares of Common Stock (as
defined herein) on the terms otherwise  provided for the conversion of shares of
Series B  Preferred  Stock into  shares of Common  Stock  pursuant  to Section 5
hereof and no such transferee  shall have any of the voting powers,  preferences
and relative, participating, optional or other special rights ascribed to shares
of Series B Preferred  Stock hereunder but,  rather,  only the powers and rights
pertaining  to the Common  Stock into  which such  shares of Series B  Preferred
Stock  shall be so  converted;  provided,  however,  that the pledge of Series B
Preferred  Stock by an employee stock  ownership plan or other employee  benefit
plan of the Company  shall not  constitute  a transfer  for the purposes of this
Section 1. Certificates representing shares of Series B Preferred Stock shall be
legended to reflect the  foregoing  provisions.  Notwithstanding  the  foregoing
provisions  of this  paragraph  (B) of Section 1,  shares of Series B  Preferred
Stock (i) may be converted  into shares of Common Stock as provided by Section 5
hereof  and the  shares of Common  Stock  issued  upon  such  conversion  may be
transferred  by the  holder  thereof  as  permitted  by law and  (ii)  shall  be
redeemable by the Company upon the terms and conditions  provided by Sections 6,
7 and 8 hereof.
 
        Section 2.    Dividends and Distributions.
 
               (A) Subject to the  provisions  for  adjustment  hereinafter  set
forth,  the holders of shares of Series B  Preferred  Stock shall be entitled to
receive, when, as and if declared by the Board of Directors out of funds legally
available therefor,  cash dividends ("Preferred  Dividends") in amount per share
equal to $75.00 per share per annum, payable semi-annually in arrears,  one-half
on June 30 and  one-half on  December 31 of each year (each a "Dividend  Payment
Date")  commencing  on December 31,  1990,  to holders of record at the start of
business on such Dividend payment Date; provided, however, that if as of a given
Dividend  Payment  Date  $37.50  is  less  than an  amount  (the  "Common  Stock
Equivalent  Dividend")  equal to (i) the aggregate  amount of all cash dividends
(excluding  an  amount  equal  to the  Fair  Market  Value  of an  Extraordinary
Distribution  made during such period as defined in paragraph  (G) of Section 9)
declared  per share of Common  Stock since the  immediately  preceding  Dividend
Payment Date  multiplied by (ii) the number of shares of Common Stock into which
such shares of Series B Preferred  Stock was  convertible  at the time each such
dividend was declared (including, without limitation, any and all adjustments as
provided  in Section 9 hereof),  then the  Preferred  Dividend  payable for such
period shall equal the Common Stock  Equivalent  Dividend  amount.  In the event
that any Dividend Payment Date shall fall on any day other than a "business day"
(as hereinafter defined), the dividend payment due on such Dividend Payment Date
shall be paid on the business day  immediately  preceding such Dividend  Payment
Date.  Preferred Dividends shall begin to accrue on outstanding shares of Series
B Preferred Stock from the date of issuance of such shares of Series B Preferred
Stock.  Preferred  Dividends  shall  accrue on a daily basis  whether or not the
Company shall have earnings or surplus at the time.  Preferred Dividends accrued
after the date of issuance thereof on the shares of Series B Preferred Stock for
any period less than a full  semi-annual  period between  Dividend Payment Dates
shall be  computed on the basis of a 360-day  year of twelve  30-day  months.  A
proportional  dividend  shall  accrue for the period  from the date of  issuance
until  December 31, 1990 and shall be  calculated  based on the fixed  Preferred
Dividend amount. Accrued but unpaid Preferred Dividends shall cumulate as of the
Dividend Payment Date on which they first become payable,  but no interest shall
accrue on accumulated but unpaid Preferred Dividends.
 
               (B) So long as any Series B Preferred stock shall be outstanding,
no  dividend  shall be  declared  or paid or set apart for  payment on any other
series of stock  ranking  on a parity  with the Series B  Preferred  Stock as to
dividends,  unless  there  shall also be or have been  declared  and paid or set
apart for  payment on the  Series B  Preferred  Stock,  like  dividends  for all
dividend payment periods of the Series B Preferred Stock ending on or before the
dividend  payment  date of such  parity  stock,  ratably  in  proportion  to the
respective  amounts of dividends  accumulated  and unpaid  through such dividend
payment  period on the Series B Preferred  Stock and  accumulated  and unpaid or
payable on such parity stock through the dividend  payment period on such parity
stock  next  preceding  such  dividend  payment  date.  In the  event  that full
cumulative  dividends on the Series B Preferred Stock have not been declared and
paid or set apart for payment when due, the Company  shall not declare or pay or
set apart for payment any dividends or make any other  distributions on, or make
any payment on account of the purchase,  redemption or other  retirement of, any
other class of stock or series thereof of the Company  ranking,  as to dividends
or as to distributions in the event of a liquidation,  dissolution or winding-up
of the  Company,  junior to the Series B Preferred  Stock until full  cumulative
dividends  on the Series B Preferred  Stock shall have been paid or declared and
set aside for payment; provided,  however, that the foregoing shall not apply to
(i) any  dividend  payable  solely in any  shares of any  stock  ranking,  as to
dividends and as to distributions in the event of a liquidation,  dissolution or
winding-up of the Company,  junior to the Series B Preferred  Stock, or (ii) the
acquisition  of  shares  of  any  stock  ranking,  as  to  dividends  or  as  to
distributions  in the event of a  liquidation,  dissolution or winding-up of the
Company, junior to the Series B Preferred Stock.
 
        Section 3.   Voting Rights.  The holders of shares of Series B Preferred
Stock shall have the following voting rights:
 
               (A) The holders of Series B Preferred  Stock shall be entitled to
vote on all matters  submitted  to a vote of the holders of Common  Stock of the
Company,  voting  together  with the holders of Common Stock as one class.  Each
share of the Series B  Preferred  Stock shall be entitled to the number of votes
equal to the number of shares of Common Stock into which such shares of Series B
Preferred  Stock  could be  converted  on the record  date for  determining  the
stockholders  entitled to vote,  rounded to the nearest  one-tenth of a vote; it
being  understood that whenever the "Conversion  Price" (as defined in Section 5
(A) hereof) is adjusted  as provided in Section 9 hereof,  the voting  rights of
the Series B Preferred Stock shall also be similarly adjusted.
 
               (B)  Except as  otherwise  required  by law or set forth  herein,
holders of Series B  Preferred  Stock  shall have no special  voting  rights and
their consent  shall not be required  (except to the extent they are entitled to
vote with  holders of Common  Stock as set forth  herein)  for the taking of any
corporate action.
 
               (C) The Restated Certificate of Incorporation, as amended, of the
Company or this Resolution (including,  without limitation, any such alteration,
amendment or repeal affected by any merger or consolidation in which the company
is a surviving or resulting corporation) shall not be amended in any manner that
would  materially  alter or change the powers,  preferences or special rights of
the Series B  Preferred  Stock so as to affect  the  holders  thereof  adversely
without the  affirmative  vote of the holders of two-thirds  of the  outstanding
shares of Series B Preferred Stock, voting together as a single class.
 
        Section 4.    Liquidation, Dissolution or Winding Up.
 
               (A) Upon any voluntary or involuntary liquidation, dissolution or
winding up of the  Company,  the  holders of Series B  Preferred  stock shall be
entitled  to  receive  out of the  assets  of the  Company  which  remain  after
satisfaction  in full of all valid  claims of creditors of the Company and which
are  available  for  payment to  stockholders  and  subject to the rights of the
holders of any stock of the  Company  ranking  senior to or on a parity with the
Series  B  Preferred  Stock  in  respect  of  distributions   upon  liquidation,
dissolution  or winding up of the  Company,  before any amount  shall be paid or
distributed among the holders of Common Stock or any other shares ranking junior
to the Series B Preferred Stock in respect of  distributions  upon  liquidation,
dissolution  or  winding up of the  Company,  liquidating  distributions  in the
amount of $1,000 per share (the  "Liquidation  Price"),  plus an amount equal to
all accrued and unpaid dividends thereon to the date fixed for distribution, and
no more. If, upon any liquidation, dissolution or winding up of the Company, the
amounts  payable  with  respect  to the Series B  Preferred  Stock and any other
parity stock ranking as to any such  distribution  on a parity with the Series B
Preferred  stock are not paid in full,  the  holders of the  Series B  Preferred
Stock and such other stock shall share ratably in any  distribution of assets in
proportion  to the  full  respective  preferential  amounts  to  which  they are
entitled.  After  payment  of the full  amount  to which  they are  entitled  as
provided by the foregoing provisions of this Section 4(A), the holders of shares
of Series B Preferred  Stock shall not be entitled to any further right or claim
to any of the remaining assets of the Company.
 
               (B) Neither the merger or  consolidation  of the Company  with or
into any  other  corporation,  nor the  merger  or  consolidation  of any  other
corporation with or into the Company,  nor the sale, transfer or lease of all or
any portion of the assets of the Company,  shall be deemed to be a  dissolution,
liquidation  or winding up of the affairs of the  Company  for  purposes of this
Section 4, but the holders of Series B Preferred  Stock  shall  nevertheless  be
entitled in the event of any such merger or consolidation to the rights provided
by Section 8 hereof.
 
               (C) Written notice of any voluntary or  involuntary  liquidation,
dissolution  or winding up of the  Company,  stating the  payment  date or dates
when,  and the place or places where,  the amounts  distributable  to holders of
Series B Preferred Stock in such circumstances shall be payable,  shall be given
by  first-class  mail,  postage  prepaid,  mailed not less than twenty (20) days
prior to any payment date stated  therein,  to the holders of Series B Preferred
Stock,  at the address  shown on the books of the Company or any transfer  agent
for the Series B Preferred Stock.
 
        Section 5.    Conversion into Common Stock.
 
               (A) A holder  of  shares of  Series B  Preferred  Stock  shall be
entitled,  at any time (but not after the close of  business on a date fixed for
redemption of such shares pursuant to Sections 6, 7 and 8 hereof),  to cause any
or all of such shares to be converted into shares of Common Stock,  initially at
a conversion  rate equal to the ratio of (i) $1,000 to (ii) the amount which (A)
initially shall be equal to 125% of the Fair Market Value (as defined herein) of
the Common  Stock on the date of issuance of the Series B Preferred  Stock,  and
(B) shall be adjusted as  hereinafter  provided  (such  amount,  as it may be so
adjusted  form  time  to  time,  is  hereinafter  sometimes  referred  to as the
"Conversion Price").
 
               (B) Any holder of shares of Series B Preferred  Stock desiring to
convert such shares into shares of Common Stock shall  surrender the certificate
or  certificates  representing  the  shares of Series B  Preferred  Stock  being
converted, duly assigned or endorsed for transfer to the Company (or accompanied
by duly executed  stock powers  relating  thereto),  at the principal  executive
office of the  Company  or the  offices of the  transfer  agent for the Series B
Preferred Stock or such office or offices in the continental United States of an
agent for  conversion  as may from time to time be  designated  by notice to the
holders of the Series B Preferred Stock by the Company or the transfer agent for
the Series B Preferred Stock, accompanied by written notice of conversion.  Such
notice  of  conversion  shall  specify  (i) the  number  of  shares  of Series B
Preferred  Stock to be  converted  and the name or  names in which  such  holder
wishes the  certificate or  certificates  for Common Stock and for any shares of
Series B  Preferred  Stock not to be so  converted  to be  issued,  and (ii) the
address to which such holder wishes delivery to be made of such new certificates
to be issued upon such conversion.
 
               (C)  Upon  surrender  of a  certificate  representing  a share or
shares of Series B Preferred Stock for  conversion,  the Company shall issue and
send by hand delivery (with receipt to be  acknowledged) or by first class mail,
postage  prepaid,  to the holder  thereof or to such holder's  designee,  at the
address  designated by such holder, a certificate or certificates for the number
of  shares  of  Common  Stock to  which  such  holder  shall  be  entitled  upon
conversion. In the event that there shall have been surrendered a certificate or
certificates representing shares of Series B Preferred Stock, only part of which
are to be converted,  the Company shall issue and deliver to such holder or such
holder's  designee a new certificate or certificates  representing the number of
shares of Series B Preferred Stock which shall not have been converted.
 
               (D) The  issuance by the Company of shares of Common Stock upon a
conversion  of shares of Series B Preferred  Stock into  shares of Common  Stock
made at the option of the holder thereof shall be effective as of the earlier of
(i) the delivery to such holder or such  holder's  designee of the  certificates
representing  the shares of Common Stock issued upon conversion  thereof or (ii)
the  commencement  of business on the second business day after the surrender of
the certificate or certificates for the shares of Series B Preferred Stock to be
converted, duly assigned or endorsed for transfer to the Company (or accompanied
by duly executed stock powers relating  thereto) as provided by this Resolution.
On and after the effective day of conversion,  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 shares of Common Stock,  but no
allowance or adjustment shall be made in respect of dividends payable to holders
of Common  Stock in respect  of any period  prior to such  effective  date.  The
Company  shall not be  obligated  to pay any  dividends  which  shall  have been
declared  and shall be payable to holders of shares of Series B Preferred  Stock
on a Dividend Payment Date if such Dividend Payment Date for such dividend shall
coincide with or be on or subsequent to the effective date of conversion of such
shares.
 
               (E) The Company  shall not be  obligated to deliver to holders of
Series B Preferred Stock any fractional share or shares of Common Stock issuable
upon any  conversion  of such  shares of Series B Preferred  Stock,  but in lieu
thereof may make a cash  payment in respect  thereof in any manner  permitted by
law.
 
               (F) The Company shall at all times reserve and keep available out
of its  authorized and unissued  Common Stock,  or Common Stock held as Treasury
Stock,  solely for issuance upon the  conversion of shares of Series B Preferred
Stock as herein provided, free from any preemptive rights, such number of shares
of Common Stock as shall from time to time be issuable  upon the  conversion  of
all the shares of Series B Preferred Stock then  outstanding.  Nothing contained
herein shall  preclude  the Company from issuing  shares of Common Stock held in
its  treasury  upon the  conversion  of shares of Series B Preferred  Stock into
Common Stock  pursuant to the terms hereof.  The Company shall prepare and shall
use its best efforts to obtain and keep in force such governmental or regulatory
permits or other authorizations as may be required by law, and shall comply with
all  requirements as to registration or  qualification of Common Stock, in order
to enable the Company  lawfully to issue and deliver to each holder of record of
Series B Preferred Stock such number of shares of its Common Stock as shall from
time to time be  sufficient  to effect the  conversion of all shares of Series B
Preferred Stock then outstanding and convertible into shares of Common Stock.
 
               (G) The Company has entered into an Amended Restated  Shareholder
Rights  Agreement dated as of June 22, 1990 (the "Rights  Agreement")  governing
the issuance to holders of Common Stock of rights to purchase  capital  stock or
other  securities  of the Company.  Whenever  the Company  shall issue shares of
Common Stock as  contemplated  by this Section 5, the Company  shall comply with
the  terms  of the  Rights  Agreement  or any  successor  rights  agreement  and
applicable  resolutions of the Board of Directors  relating to rights  dividends
with respect to the issuance of rights together with the issuance of such shares
of Common Stock.
 
               Section 6.    Redemption At the Option of the Company.
 
               (A) The Series B Preferred  Stock shall be redeemable in whole or
in part,  at the option of the Company at any time after July 1, 1994,  or on or
before July 1, 1994 if  permitted  by  paragraph  (D) of this  Section 6, at the
following  redemption  prices  per  share,  expressed  as a  percentage  of  the
Liquidation Price per share:
 
                         During the Twelve-
                             Month Period               Price Per
                          Beginning July 1,                Share
                          -----------------              -------
                                1990                     107.50%
                                1991                     106.75%
                                1992                     106.00%
                                1993                     105.25%
                                1994                     104.50%
                                1995                     103.75%
                                1996                     103.00%
                                1997                     102.25%
                                1998                     101.50%
                                1999                     100.75%
                                2000                     100.00%
 
and  thereafter at $1,000 per share,  plus, in each case, an amount equal to all
accrued and unpaid dividends  thereon to the date fixed for redemption.  Payment
of the redemption price shall be made by the Company in cash or shares of Common
Stock, or a combination  thereof,  as permitted by paragraph (E) of this Section
6. From and after the date fixed for redemption, dividends on shares of Series B
Preferred Stock called for redemption will ceases to accrue, such shares will no
longer be deemed to be  outstanding  and all rights in respect to such shares of
the Company shall cease,  except the right to receive the redemption  price.  If
less than all of the  outstanding  shares of Series B Preferred  Stock are to be
redeemed, the Company shall either redeem a portion of the shares of each holder
determined  pro rata based on the number of shares  held by each holder or shall
select the shares to be redeemed,  by lot, as may be  determined by the Board of
Directors of the Company.
 
               (B) Unless  otherwise  required by law,  notice of redemption for
any  redemption  made  pursuant to this Section 6 will be sent to the holders of
Series B Preferred Stock at the address shown on the books of the Company or any
transfer  agent for the Series B Preferred  Stock by first  class mail,  postage
prepaid,  mailed  not less than  twenty  (20) days nor more than sixty (60) days
prior to the redemption  date. Each such notice shall state:  (i) the redemption
date;  (ii) the total  number of shares of the  Series B  Preferred  Stock to be
redeemed  and,  if  fewer  than all the  shares  held by such  holder  are to be
redeemed,  the number of such shares to be redeemed from such holder;  (iii) the
redemption  price;  (iv) the place or places where  certificates for such shares
are to be surrendered for payment of the redemption price; (v) that dividends on
the shares to be redeemed will cease to accrue on such redemption date; and (vi)
the  conversion  rights of the shares to be  redeemed,  the period  within which
conversion  rights may be  exercised  (which  shall be no less than  twenty (20)
days),  and the  Conversion  Price and number of shares of Common Stock issuable
upon  conversion of a share of Series B Preferred  Stock on the date such notice
is sent. The foregoing notice provisions may be amended, if necessary,  so as to
comply  with  the  optional   redemption   provisions  for  preferred  stock  as
"qualifying employer securities" or "employer  securities" within the meaning of
Sections  4975(e)(8) and 409(1) of the Internal Revenue Code of 1986, as amended
(the  "Code"),  or under  any  successor  provision  thereof  or as  "qualifying
employer  securities" under Section 407(d)(5) of the Employee  Retirement Income
Security  Act of 1974,  as amended  ("ERISA") or under any  successor  provision
thereof.  Upon  surrender  of the  certificates  for any  shares so  called  for
redemption  and not  previously  converted  (properly  endorsed or assigned  for
transfer,  if the Board of  Directors  of the  Company  shall so require and the
notice shall so state), such shares shall be redeemed by the Company at the date
fixed for redemption and at the redemption price set forth in this Section 6.
 
               (C) (i) In the event of a change in the  federal  tax laws of the
United States of America (or any regulations or rulings promulgated thereunder),
or any change in the application,  enforcement or  interpretation  in respect of
such laws,  regulations  or rulings,  including any of the foregoing  taken by a
court of competent jurisdiction,  which has the effect of precluding the Company
from  claiming  any of the tax  deductions  for  dividends  paid on the Series B
Preferred Stock (other than a change treating the dividends as a preference item
for purposes of  determining  alternative  minimum tax) when such  dividends are
used as provided  under Section  404(k)(2) of the Code and in effect on the date
shares  of  Series B  Preferred  Stock  are  initially  issued,  or (ii)  upon a
determination by the Internal Revenue Service that the Company's  employee stock
ownership plan (the "Plan"),  as amended, or any successor plan is not qualified
under  Sections  401(a),  401(k) and 4975(e)(7) of the Code, the Company may, in
its sole  discretion and  notwithstanding  anything to the contrary in paragraph
(A) of this  Section 6, elect to redeem  such  shares for the amount  payable in
respect of the shares  upon  liquidation  of the  Company  pursuant to Section 4
hereof.  Notice of such  redemption  shall be  provided in  accordance  with the
procedures set forth in paragraph (B) of this Section 6, provided, however, that
notice of  redemption  for any  redemption  made  pursuant to clause (i) of this
paragraph 6(C) shall be mailed not more than ninety (90) days after the later to
occur of (i) the effective  date,  or (ii) the date of enactment,  of the change
permitting such redemption.
 
               (D) If the Company  terminates or partially  terminates the Plan,
then,  notwithstanding anything to the contrary in paragraph (A) of this Section
6, the  Company  may  elect to  redeem  any and all of the  shares  of  Series B
Preferred  Stock at any time prior to July 1, 1994, on the terms and  conditions
set forth in paragraphs (A) and (B) of this Section 6.
 
               (E) The  Company  shall  make  payment  of the  redemption  price
required upon  redemption  of shares of Series B Preferred  Stock in cash, or if
the Company so elects,  in shares of Common Stock,  or in a combination  of such
shares and cash,  any such  shares to be valued  for such  purpose at their Fair
Market Value (as defined in paragraph (G) of Section 9 hereof).  Notwithstanding
anything herein to the contrary  (including Section 7 hereof), in the event that
the Company elects,  by a resolution of its Board of Directors,  to make payment
of all  future  redemption  prices  solely in cash or solely in shares of Common
Stock of the Company  and  notifies  the holders of Series B Preferred  Stock of
such election,  all such payments  thereafter  shall be made in compliance  with
such election and such election shall be irrevocable.
 
               Section 7.    Other Redemption Rights.
 
               For  consideration  as  provided in  paragraph  (E) of Section 6,
shares of  Series B  Preferred  Stock  shall be  redeemed  by the  Company  at a
redemption  price equal to the greater of the Fair Market Value (as  hereinafter
defined) or the Liquidation Price of the Series B Preferred Stock plus an amount
equal  to all  accrued  and  unpaid  dividends  thereon  to the date  fixed  for
redemption,  at the option of the holder, at any time and from time to time upon
notice to the Company  given not less than five (5)  business  days prior to the
date fixed by the holder in such  notice  for such  redemption,  when and to the
extent necessary (i) for such holder to provide for distributions required to be
made to  participants  under, or to satisfy an investment  election  provided to
participants in accordance  with, the Plan, or any successor Plan, (ii) for such
holder to make  payment  of  principal,  interest  or  premium  due and  payable
(whether as scheduled or upon  acceleration)  on indebtedness of the trust under
such Plan or any  indebtedness  incurred  by the holder  for the  benefit of the
Plan, or (iii) when and if it shall be  established to the  satisfaction  of the
holder that the Plan has not initially been  determined by the Internal  Revenue
Service to be qualified as an employee  stock  ownership plan within the meaning
of Sections 401(a) or 4975(e)(7) of the Code, respectively.
 
               Section 8.    Consolidation, Merger, etc.
 
               (A)  In  the  event  that  the  Company  shall   consummate   any
consolidation,  merger or similar business transaction,  however named, pursuant
to which  the  outstanding  shares  of  Common  Stock  are by  operation  of law
exchanged solely for or changed,  reclassified or converted solely into stock of
any successor or resulting  company  (including  the Company)  that  constitutes
"employer  securities"  with  respect  to a holder of Series B  Preferred  Stock
(within  the  meaning of Section  409(1) of the Code) and  "qualifying  employer
securities"  (within the meaning of Section 407(d)(5) of ERISA, or any successor
provisions of law) and, if applicable,  for a cash payment in lieu of fractional
shares,  if any, the shares of Series B Preferred  Stock of such holder shall be
assumed and shall become preferred stock of such successor or resulting company,
having  in  respect  of such  company  insofar  as  possible  the  same  powers,
preferences  and  relative,  participating,  optional  or other  special  rights
(including the redemption  rights  provided by Sections 6, 7 and 8 hereof),  and
the  qualifications,  limitations  or  restrictions  thereon,  that the Series B
Preferred Stock had  immediately  prior to such  transaction,  except that after
such   transaction  each  share  of  the  Series  B  Preferred  Stock  shall  be
convertible,  otherwise on the terms and conditions provided by Sections 5 and 7
hereof, into the number and kind of qualifying employer securities so receivable
by a holder of the number of shares of Common  Stock  into which such  shares of
Series B Preferred  Stock could have been  converted  immediately  prior to such
transaction  if such holder of Common  Stock  failed to  exercise  any rights of
election  to  receive  any kind or amount of  stock,  securities,  cash or other
property (other than such qualifying  employer securities and a cash payment, if
applicable,  in lieu of  fractional  shares)  receivable  upon such  transaction
(provided  that,  if the  kind  or  amount  of  qualifying  employer  securities
receivable upon such transaction is not the same for each non-electing  share of
Common  Stock,  then the kind  and  amount  of  qualifying  employer  securities
receivable  upon such  transaction for each  non-electing  share of Common Stock
shall be the kind and  amount  so  receivable  per share by a  plurality  of the
non-electing shares of Common Stock). The rights of the Series B Preferred Stock
as preferred stock of such successor or resulting company shall  successively be
subject to adjustment pursuant to Section 9 hereof after any such transaction as
nearly equivalent to the adjustments  provided for by such section prior to such
transaction.  The Company shall not merger, consolidation or similar transaction
unless all then  outstanding  shares of the Series B  Preferred  Stock  shall be
assumed and authorized by the successor or resulting company as aforesaid.
 
               (B)  In  the  event  that  the  Company  shall   consummate   any
consolidation or merger or similar transaction, however named, pursuant to which
the outstanding  shares of Common Stock are by operation of law exchanged for or
changed, reclassified or converted into other stock or securities or cash or any
other property,  or any combination  thereof,  other than any such consideration
which is constituted solely of qualifying employer securities (as referred to in
paragraph (A) of this Section 8) and cash payments,  if  applicable,  in lieu of
fractional shares, outstanding shares of Series B Preferred Stock shall, without
any  action on the part of the  Company or any holder  thereof  (but  subject to
paragraph (C) of this Section 8), be  automatically  converted by virtue of such
merger,   consolidation  or  similar  transaction   immediately  prior  to  such
consummation into the number of shares of Common Stock into which such shares of
Series B  Preferred  Stock could have been  converted  at such time so that each
share of Series B Preferred  Stock shall,  by virtue of such  transaction and on
the same terms as apply to the holders of Common  Stock,  be  converted  into or
exchanged for the aggregate amount of stock, securities,  cash or other property
(payable in like kind)  receivable by a holder of the number of shares of Common
Stock  into  which  such  shares of Series B  Preferred  Stock  could  have been
converted  immediately  prior to such transaction if such holder of Common Stock
failed to  exercise  any rights of  election  as to the kind or amount of stock,
securities,  cash or other property  receivable upon such transaction  (provided
that,  if the kind or  amount  of  stock,  securities,  cash or  other  property
receivable upon such transaction is not the same for each non-electing  share of
Common  Stock,  then the kind and  amount  of stock,  securities,  cash or other
property  receivable upon such transaction for each non-electing share of Common
Stock shall be the kind and amount so receivable per share by a plurality of the
non-electing shares of Common Stock).
 
               (C) In the event  the  Company  shall  enter  into any  agreement
providing for any  consolidation,  merger, or similar  transaction  described in
paragraph (B) of this Section 8, then the Company  shall as soon as  practicable
thereafter (and in any event at least ten (10) business days before consummation
of such  transaction)  give  notice of such  agreement  and the  material  terms
thereof to each  holder of Series B Preferred  Stock and each such holder  shall
have the right to elect,  by written  notice to the  Company,  to receive,  upon
consummation of such  transaction (if and when such transaction is consummated),
from the Company of the successor of the Company, out of funds legally available
therefor,  in redemption and retirement of such Series B Preferred Stock, a cash
payment  equal to the amount  payable in respect of shares of Series B Preferred
Stock upon  redemption  pursuant to paragraph  (A) of Section 6 hereof.  No such
notice of redemption shall be effective unless given to the Company prior to the
close of  business  on the second  business  day prior to  consummation  of such
transaction, unless the Company or the successor of the Company shall waive such
prior  notice,  but any notice of  redemption so given prior to such time may be
withdrawn  by notice of  withdrawal  given to the Company  prior to the close of
business on the second business day prior to consummation of such transaction.
 
               Section 9.    Anti-dilution Adjustments.
 
               (A) In the event the Company  shall,  at any time or from time to
time while any of the shares of Series B Preferred  Stock are  outstanding,  (i)
pay a dividend or make a  distribution  in respect of the Common Stock in shares
of Common Stock, (ii) subdivide the outstanding shares of Common Stock, or (iii)
combine the outstanding  shares of Common Stock into a smaller number of shares,
in each case  whether by  reclassification  of shares,  recapitalization  of the
Company (including a  recapitalization  effected by a merger or consolidation to
which Section 8 hereof does not apply) or otherwise,  subject to the  provisions
of  subparagraphs  E and F of this  Section  9, the  Conversion  Price in effect
immediately  prior  to  such  action  shall  be  adjusted  by  multiplying  such
Conversion Price by the fraction, the numerator of which is the number of shares
of Common Stock outstanding immediately before such event and the denominator of
which is the number of shares of Common Stock outstanding immediately after such
event. An adjustment made pursuant to this paragraph 9(A) shall be given effect,
upon payment of such a dividend or  distribution,  as of the record date for the
determination of shareholders  entitled to receive such dividend or distribution
(on a retroactive  basis) and in the case of a subdivision or combination  shall
become effective immediately as of the effective date thereof.
 
               (B) In the event that the Company shall, at any time or from time
to time while any of the  shares of Series B  Preferred  Stock are  outstanding,
issue to  holders  of shares  of Common  Stock as a  dividend  or  distribution,
including by way of a reclassification  of shares or a  recapitalization  of the
Company,  any right or  warrant  to  purchase  shares of Common  Stock  (but not
including  as such a right  or  warrant  (i) any  security  convertible  into or
exchangeable for shares of Common Stock or (ii) any rights issued pursuant to or
governed by the Rights Agreement or any successor rights agreement thereto) at a
purchase  price  per  share  less than the Fair  Market  Value  (as  hereinafter
defined)  of a share of Common  Stock on the date of  issuance  of such right or
warrant,  then,  subject to the  provisions  of  paragraphs  (E) and (F) of this
Section 9, the Conversion Price shall be adjusted by multiplying such Conversion
Price by the  fraction,  the numerator of which shall be the number of shares of
Common Stock outstanding  immediately before such issuance of rights or warrants
plus the number of shares of Common  Stock which could be  purchased at the Fair
Market  Value of a share of Common  Stock at the time of such  issuance  for the
maximum aggregate consideration payable upon exercise in full of all such rights
or warrants and the denominator of which shall be the number of shares of Common
Stock  outstanding  immediately  before such issuance of rights or warrants plus
the  maximum  number of  shares of Common  Stock  that  could be  acquired  upon
exercise in full of all such rights and warrants.
 
               (C) In the event the Company  shall,  at any time or from time to
time while any of the shares of Series B Preferred Stock are outstanding, issue,
sell or exchange shares of Common Stock (other than pursuant to (i) any right or
warrant to purchase or acquire shares of Common Stock (including as such a right
or warrant any security  convertible  into or exchangeable  for shares of Common
Stock),  (ii) any rights issued pursuant to or governed by the Rights  Agreement
or any successor rights agreement,  and (iii) any employee or director incentive
or  benefit  plan  or  arrangement,   including  any  employment,  severance  or
consulting agreement, of the Company or any subsidiary of the Company heretofore
or hereafter  adopted) for a consideration  having a Fair Market Value of Common
Stock on the date of such  issuance,  sale or exchange less than the Fair Market
Value of such  shares  of  Common  Stock on the date of such  issuance,  sale or
exchange,  then,  subject to the  provisions of  paragraphs  (E) and (F) of this
Section 9, the Conversion Price shall be adjusted by multiplying such Conversion
Price by the  fraction  the  numerator of which shall be the sum of (i) the Fair
Market  Value  of all  the  shares  of  Common  Stock  outstanding  on  the  day
immediately  preceding the first public  announcement of such issuance,  sale or
exchange  plus (ii) the Fair Market Value of the  consideration  received by the
Company in respect of such issuance, sale or exchange of shares of Common Stock,
and the  denominator  of which shall be the product of (i) the Fair Market Value
of a share of Common  Stock on the day  immediately  preceding  the first public
announcement  of such issuance,  sale or exchange  multiplied by (ii) the sum of
the number of shares of Common Stock  outstanding on such day plus the number of
shares of Common Stock so issued, sold or exchanged by the Company. In the event
the Company shall, at any time or from time to time while any shares of Series B
preferred Stock are outstanding, issue, sell or exchange any right or warrant to
purchase or acquire shares of Common Stock (including as such a right or warrant
any security convertible into or exchangeable for shares of Common Stock), other
than any such issuance (i) to holders of shares of Common Stock as a dividend or
distribution   (including  by  way  of  a   reclassification   of  shares  or  a
recapitalization of the Company),  (ii) or rights issued pursuant to or governed
by the Rights  Agreement or any successor rights  agreement  thereto,  and (iii)
pursuant to any employee or director  incentive  or benefit plan or  arrangement
(including any employment,  severance or consulting agreement) of the Company or
any  subsidiary  of  the  Company  heretofore  or  hereafter   adopted,   for  a
consideration  having a Fair Market Value on the date of such issuance,  sale or
exchange  less than the  Non-Dilutive  Amount (as  hereinafter  defined),  then,
subject  to the  provisions  of  paragraphs  (E) and (F) of this  Section 9, the
Conversion  Price shall be adjusted by multiplying  such Conversion Price by the
fraction the numerator of which shall be the sum of (i) the Fair Market Value of
all the shares of Common Stock outstanding on the day immediately  preceding the
first public announcement of such issuance,  sale or exchange plus (ii) the Fair
Market  Value of the  consideration  received  by the Company in respect of such
issuance,  sale or exchange of such right or warrant  plus (iii) the Fair Market
Value at the time of such issuance of the consideration  which the Company would
receive  upon  exercise  in  full  of all  such  rights  or  warrants,  and  the
denominator of which shall be product of (i) the Fair Market Value of a share of
Common Stock on the day immediately  preceding the first public  announcement of
such  issuance,  sale or  exchange  multiplied  by (ii) the sum of the number of
shares of Common Stock outstanding on such day plus the maximum number of shares
of Common Stock which could be acquired pursuant to such right or warrant at the
time of the issuance, sale or exchange of such right or warrant (assuming shares
of Common  Stock  could be  acquired  pursuant  to such right or warrant at such
time).
 
               (D) In the event the Company  shall,  at any time or from time to
time while any of the shares of Series B Preferred Stock are  outstanding,  make
an Extraordinary  Distribution (as hereinafter defined) in respect of the Common
Stock,  whether  by  dividend,  distribution,   reclassification  of  shares  or
recapitalization    of   the   Company   (including   a   recapitalization    or
reclassification effected by a merger or consolidation to which Section 8 hereof
does not apply) or effect a Pro Rata  Repurchase  (as  hereinafter  defined)  of
Common  Stock,  the  Conversion  Price  in  effect  immediately  prior  to  such
Extraordinary  Distribution or Pro Rata Repurchase shall,  subject to paragraphs
(E) and (F) of this Section 9, be adjusted by multiplying  such Conversion Price
by the fraction,  the numerator of which is (i) the product of (x) the number of
shares  of  Common  Stock  outstanding  immediately  before  such  Extraordinary
Distribution or Pro Rata Repurchase  multiplied by (y) the Fair Market Value (as
herein  defined)  of a share of Common  Stock on the day before the  ex-dividend
date with respect to an Extraordinary  Distribution which is paid in cash and on
the  distribution  date with respect to an Extraordinary  Distribution  which is
paid other than in cash, or on the  applicable  expiration  date  (including all
extensions  thereof) of any tender offer which is a Pro Rata  Repurchase,  or on
the date of  purchase  with  respect to any Pro Rata  Repurchase  which is not a
tender  offer,  as the case may be,  minus  (ii)  the Fair  Market  Value of the
Extraordinary  Distribution  or the  aggregate  purchase  price  of the Pro Rata
Repurchase,  as the  case may be,  and the  denominator  of  which  shall be the
product  of (A) the  number of shares of Common  Stock  outstanding  immediately
before such Extraordinary  Dividend or Pro Rata Repurchase minus, in the case of
a Pro Rata Repurchase,  the number of shares of Common Stock  repurchased by the
Company  multiplied  by (B) the Fair Market  Value of a share of Common Stock on
the  day  before  the  ex-dividend   date  with  respect  to  an   Extraordinary
Distribution  which is paid in cash and on the distribution date with respect to
an  Extraordinary  Distribution  which  is  paid  other  than  in cash or on the
applicable  expiration  date  (including all  extensions  thereof) of any tender
offer which is a Pro Rata  Repurchase or on the date of purchase with respect to
any Pro Rata  Repurchase  which is not a tender  offer,  as the case may be. The
Company  shall send each  holder of Series B  Preferred  Stock (i) notice of its
intent to make any dividend or distribution  and (ii) notice of any offer by the
Company to make a Pro Rata  Repurchase,  in each case at the same time as, or as
soon as  practicable  after,  such  offer is first  communicated  (including  by
announcement of a record date in accordance with the rules of any stock exchange
on which the Common Stock is listed or admitted to trading) to holders of Common
Stock.  Such notice shall  indicate the intended  record date and the amount and
nature of such dividend or distribution, or the number of shares subject to such
offer for a Pro Rata  Repurchase  and the purchase  price payable by the Company
pursuant to such offer, as well as the Conversion Price and the number of shares
of Common Stock into which a share of Series B Preferred  Stock may be converted
at such time.
 
               (E)  Notwithstanding  any other provisions of this Section 9, the
Company  shall not be required to make any  adjustment of the  Conversion  Price
unless  such  adjustment  would  require an increase or decrease of at least one
percent (1%) in the Conversion  Price.  Any lesser  adjustment  shall be carried
forward and shall be made no later than the time of, and together with, the next
subsequent  adjustment  which,  together with any  adjustment or  adjustments so
carried forward, shall amount to an increase or decrease of at least one percent
(1%) in the Conversion Price.
 
               (F) If the Company shall make any dividend or distribution on the
Common Stock or issue any Common Stock, other capital stock or other security of
the Company or any rights or warrants to purchase or acquire any such  security,
which  transaction  does not result in an  adjustment  to the  Conversion  Price
pursuant to the  foregoing  provisions of this Section 9, the Board of Directors
of the Company  shall  consider  whether such action is of such a nature that an
adjustment to the Conversion  Price should  equitably be made in respect of such
transaction.  If in such case the Board of Directors  of the Company  determines
that an adjustment to the Conversion  Price should be made, an adjustment  shall
be made  effective as of such date,  as  determined by the Board of Directors of
the Company,  which  adjustment  shall in no event adversely  affect the powers,
preferences  or  special  rights of the  Series B  Preferred  Stock as set forth
herein. The determination of the Board of Directors of the Company as to whether
an adjustment to the  Conversion  Price should be made pursuant to the foregoing
provisions of this paragraph 9(F),  and, if so, as to what adjustment  should be
made and when, shall be final and binding on the Company and all stockholders of
the Company.  The Company shall be entitled to make such additional  adjustments
in the  Conversion  Price,  in  addition  to  those  required  by the  foregoing
provisions  of this  Section 9, as shall be necessary in order that any dividend
or  distribution  in  shares  of  capital  stock  of the  Company,  subdivision,
reclassification  or  combination  of  shares  of  stock of the  Company  or any
recapitalization  of the  Company  shall not be taxable to holders of the Common
Stock.
 
               (G) For purposes of this [Resolution],  the following definitions
shall apply:
 
        The term  "business  day"  shall  mean each day that is not a  Saturday,
Sunday or a day on which state or federally  chartered  banking  institutions in
New York, New York or Fort Worth, Texas are not required to be open.
 
        "Extraordinary   Distribution"   shall  mean  any   dividend   or  other
distribution  to holders of Common  Stock  (effected  while any of the shares of
Series B  Preferred  Stock are  outstanding)  (i) of cash,  where the  aggregate
amount of such cash  dividend or  distribution  together  with the amount of all
cash dividends and distributions  made during the preceding period of 12 months,
when combined with the aggregate  amount of all Pro Rata  Repurchases  (for this
purpose, including only that portion of the aggregate purchase price of such Pro
Rata Repurchase  which is in excess of the Fair Market Value of the Common Stock
repurchased  as  determined on the  applicable  expiration  date,  including all
extensions  thereof,  of any tender offer or exchange  offer which is a Pro Rata
Repurchase,  or the  date  of  purchase  with  respect  to any  other  Pro  Rata
Repurchase  which is not a tender  offer or  exchange  offer  made  during  such
period),  exceeds ten percent  (10%) of the  aggregate  Fair Market Value of all
shares of Common  Stock  outstanding  on the  record  date for  determining  the
shareholders entitled to receive such Extraordinary Distribution and (ii) of any
shares of capital  stock of the Company  (other  than  shares of Common  Stock),
other  securities of the Company (other than  securities of the type referred to
in paragraph (B) of this Section 9), evidences of indebtedness of the Company or
any other person or any other  property  (including  shares of any subsidiary of
the  Company),  or  any  combination  thereof.  The  Fair  Market  Value  of  an
Extraordinary Distribution for purposes of paragraph (D) of this Section 9 shall
be the sum of the Fair Market Value of such Extraordinary  Distribution plus the
amount of any cash  dividends  which are not  Extraordinary  Distributions  made
during such twelve month period and not previously  included in the  calculation
of an adjustment pursuant to paragraph (D) of this Section 9.
 
        "Fair  Market  Value"  shall mean,  as to shares of Common  Stock or any
other class of capital  stock or  securities  of the Company or any other issuer
which are  publicly  traded,  the  average  of the  Current  Market  Prices  (as
hereinafter defined) of such shares or securities for each day of the Adjustment
Period (as  hereinafter  defined).  "Current  Market  Price" of publicly  traded
shares of Common Stock or any other class of capital stock or other  security of
the  Company  or any other  issuer  for a day  shall  mean (i) for  purposes  of
Sections 6 and 7 hereof,  the mean between the highest and lowest reported sales
price on such day and (ii) for all  other  purposes  hereof,  the last  reported
sales  price,  regular  way,  or, in case no sale takes  place on such day,  the
average of the  reported  closing bid and asked  prices,  regular way, in either
case as  reported  on the New York  Stock  Exchange  Composite  Tape or, if such
security is not listed or admitted to trading on the New York Stock Exchange, on
the principal national  securities  exchange on which such security is listed or
admitted to trading  or, if not listed or  admitted  to trading on any  national
securities  exchange,  on the Nasdaq National Market System or, if such security
is not quoted on such National Market System, the average of the closing bid and
asked  prices on each such day in the  over-the-counter  market as  reported  by
Nasdaq or, if bid and asked prices for such  security on each such day shall not
have been reported  through Nasdaq,  the average of the bid and asked prices for
such day as  furnished  by any New York Stock  Exchange  member  firm  regularly
making a market  in such  security  selected  for such  purpose  by the Board of
Directors  of the Company or a committee  thereof on each trading day during the
Adjustment  Period.  "Adjustment  Period"  shall  mean  the  period  of five (5)
consecutive trading days, selected by the Board of Directors of the Company or a
committee thereof in a manner determined by such Board of Directors or committee
to be most favorable to the holders of the Series B Preferred Stock,  during the
twenty (20) trading days preceding, and including, the date as of which the Fair
Market Value of a security is to be  determined.  The "Fair Market Value" of any
security  (except  with  respect to the Series B Preferred  Stock)  which is not
publicly  traded or of any other  property  shall mean the fair value thereof as
determined by an independent investment banking or appraisal firm experienced in
the valuation of such securities or property selected in good faith by the Board
of Directors of the Company or a committee  thereof,  or, if no such  investment
banking  or  appraisal  firm is in the  good  faith  judgment  of the  Board  of
Directors or such committee available to make such determination,  as determined
in good faith by the Board of  Directors of the Company or such  committee.  The
"Fair  Market  Value"  of the  Series  B  Preferred  Stock  shall  be the  value
determined by an independent  appraisal firm appointed by the Trustee,  provided
that in determining such value,  such appraisal firm shall not take into account
any accrued but unpaid Preferred Dividends.
 
        "Non-Dilutive Amount" in respect of an issuance, sale or exchange by the
Company of any right or warrant to  purchase or acquire  shares of Common  Stock
(including any security  convertible  into or exchangeable  for shares of Common
Stock) shall mean the remainder of (i) the product of the Fair Market Value of a
share of  Common  Stock on the day  preceding  the  first  announcement  of such
issuance,  sale or exchange multiplied by the maximum number of shares of Common
Stock which  could be  acquired  on such date upon the  exercise in full of such
rights and  warrants  (including  upon the  conversion  or  exchange of all such
convertible  or  exchangeable  securities),   whether  or  not  exercisable  (or
convertible  or  exchangeable)  at such date,  minus (ii) the  aggregate  amount
payable to the Company  pursuant to such right or warrant to purchase or acquire
such maximum  number of shares of Common Stock;  provided,  however,  that in no
event  shall the  Non-Dilutive  Amount be less than zero.  For  purposes  of the
foregoing sentence,  in the case of a security  convertible into or exchangeable
for shares of Common Stock, the amount payable pursuant to a right or warrant to
purchase or acquire  shares of Common  Stock  shall be the Fair Market  Value of
such security on the date of the issuance,  sale or exchange of such security by
the Company.
 
        "Pro Rata Repurchase"  shall mean any purchase of shares of Common Stock
by the Company or any subsidiary  thereof,  whether for cash,  shares of capital
stock of the Company, other securities of the Company, evidences of indebtedness
of the Company or any other person or any other property  (including shares of a
subsidiary of the Company),  or any combination  thereof,  affected while any of
the shares of Series B Preferred Stock are  outstanding,  pursuant to any tender
offer or exchange offer subject to Section 13(e) of the Securities  Exchange Act
of 1934, as amended (the "Exchange Act"), or any successor  provision of law, or
pursuant to any other offer  available  to  substantially  all holders of Common
Stock;  provided,  however,  that no  purchase  of shares by the  Company or any
subsidiary  thereof made in open market  transactions shall be deemed a Pro Rata
Repurchase.  For purposes of this paragraph 9(G), shares shall be deemed to have
been  purchased  by the  Company  or any  subsidiary  thereof  "in  open  market
transactions"  if they have been purchased  substantially in accordance with the
requirements  of Rule 10b-18 as in effect  under the  Exchange  Act, on the date
shares of Series B  Preferred  Stock are  initially  issued by the Company or on
such other terms and  conditions  as the Board of  Directors of the Company or a
committee thereof shall have determined are reasonably  designed to prevent such
purchases  from having a material  affect on the  trading  market for the Common
Stock.
 
               (H)  Whenever  an  adjustment  to the  Conversion  Price  and the
related  voting rights of the Series B Preferred  Stock is restored  pursuant to
this  Resolution,  the Company shall  forthwith  place on file with the transfer
agent for the Common Stock and the Series B Preferred Stock if there be one, and
with the  Secretary  of the Company,  a statement  signed by two officers of the
Company stating the adjusted  Conversion Price determined as provided herein and
the  resulting  conversion  ratio,  and  the  voting  rights  (as  appropriately
adjusted),  of the Series B Preferred  Stock.  Such statement shall set forth in
reasonable  detail such facts as shall be  necessary  to show the reason and the
manner of computing such adjustment,  including any determination of Fair Market
Value  involved  in such  computation.  Promptly  after each  adjustment  to the
Conversion  Price and the related voting rights of the Series B Preferred Stock,
the Company shall mail a notice  thereof and of the then  prevailing  conversion
ratio to each holder of shares of the Series B Preferred Stock.
 
        Section 10.   Ranking; Attributable Capital and Adequacy of Surplus;
Retirement of Shares.
 
               (A) The Series B  Preferred  Stock  shall rank  senior to (i) the
Common Stock as to the payment of dividends  and the  distribution  of assets on
liquidation,  dissolution  or winding up of the  Company,  and (ii) the Series A
Junior  Participating  Preferred  Stock as to the payment of  dividends  and the
distribution  of assets upon  liquidation,  dissolution  or  winding-up.  Unless
otherwise provided in the Restated  Certificate of Incorporation of the Company,
as amended, or a Certificate of Designations  relating to a subsequent series of
Preferred Stock, without par value, of the Company, the Series B Preferred Stock
shall rank  junior to all other  subsequent  series of the  Company's  Preferred
Stock, without par value, as to the payment of dividends and the distribution of
assets on liquidation, dissolution or winding up.
 
               (B)  The  capital  of  the  Company  allocable  to the  Series  B
Preferred  Stock for  purposes  of the  Delaware  General  Corporation  Law (the
"Corporation  Law")  shall  be  $1.00  per  share.  In  addition  to any vote of
stockholders  required  by law,  the vote of the  holders of a  majority  of the
outstanding shares of Series B Preferred Stock shall be required to increase the
par value of the Common Stock or  otherwise  increase the capital of the Company
allocable  to the Common Stock for the purpose of the  Corporation  Law if, as a
result  thereof,  the surplus of the Company for purposes of the Corporation Law
would be less than the amount of  Preferred  Dividends  that would accrue on the
then  outstanding  shares of Series B Preferred Stock during the following three
years.
 
               (C) Any  shares  of  Series B  Preferred  Stock  acquired  by the
Company by reason of the  conversion or redemption of such shares as provided by
this Resolution,  or otherwise so acquired, shall be retired as shares of Series
B Preferred  Stock and restored to the status of authorized but unissued  shares
of  Preferred  Stock,  without par value,  of the  Company,  undesignated  as to
series, and may thereafter be reissued as part of a new series of such Preferred
Stock as permitted by law.
 
        Section 11.  Miscellaneous.
 
               (A) All notices  referred to herein shall be in writing,  and all
notices hereunder shall be deemed to have been given upon the earlier of receipt
thereof  or three  (3)  business  days  after  the  mailing  thereof  if sent by
registered mail (unless  first-class  mail shall be  specifically  permitted for
such notice under the terms of this Resolution) with postage prepaid, addressed:
(i) if to the Company, to its office at 1800 One Tandy Center, Fort Worth, Texas
76102, (Attention: Marc C. Hill, Vice President,  General Counsel, and Corporate
Secretary) or to the transfer agent for the Series B Preferred  Stock,  or other
agent of the Company  designated  as permitted by this  Resolution or (ii) if to
any holder of the Series B Preferred  Stock or Common Stock, as the case may be,
to such holder at the address of such holder as listed in the stock record books
of the Company  (which may include  the  records of any  transfer  agent for the
Series B Preferred  Stock or Common Stock,  as the case may be) or (iii) to such
other address as the Company or any such holder,  as the case may be, shall have
designated by notice similarly given.
 
               (B) The term "Common  Stock" as used in this  [Resolution]  means
the Company's Common Stock of $1.00 par value, as the same exists at the date of
filing of a Certificate of Designations relating to Series B Preferred Stock, or
any other class of stock resulting from successive changes or  reclassifications
of such Common  Stock  consisting  solely of changes in par value.  In the event
that,  at any time as a result of an  adjustment  made  pursuant to Section 9 of
this  Resolution,  the holder of any share of the Series B Preferred  Stock upon
thereafter  surrendering  such shares for  conversion  shall become  entitled to
receive  any shares or other  securities  of the  Company  other than  shares of
Common Stock, the Conversion Price in respect of such other shares or securities
so  receivable  upon  conversion  of shares of Series B  Preferred  Stock  shall
thereafter be adjusted,  and shall be subject to further adjustment from time to
time,  in a manner  and on terms as  nearly  equivalent  as  practicable  to the
provisions with respect to Common Stock  contained in Section 9 hereof,  and the
provisions of Sections 1 through 8 and 10 and 11 of this Resolution with respect
to the  Common  Stock  shall  apply on like or  similar  terms to any such other
shares or securities.
 
               (C)  The  Company  shall  pay  any and  all  stock  transfer  and
documentary  stamp  taxes that may be payable  in  respect  of any  issuance  or
delivery  of  shares of Series B  Preferred  Stock or shares of Common  Stock or
other  securities  issued on account of Series B Preferred Stock pursuant hereto
or certificates  representing such shares or securities.  The Company shall not,
however,  be required to pay any such tax which may be payable in respect of any
transfer  involved  in the  issuance or delivery of shares of Series B Preferred
Stock or Common Stock or other securities in a name other than that in which the
shares of Series B  Preferred  Stock with  respect to which such shares or other
securities are issued or delivered were registered, or in respect of any payment
to any person with respect to any such shares or securities other than a payment
to the  registered  holder  thereof,  and shall not be required to make any such
issuance,  delivery or payment unless and until the person otherwise entitled to
such  issuance,  delivery  or payment  has paid to the Company the amount of any
such tax or has established,  to the satisfaction of the Company,  that such tax
has been paid or is not payable.
 
               (D) In the event  that a holder  of shares of Series B  Preferred
Stock shall not by written  notice  designate the name in which shares of Common
Stock to be issued upon  conversion  of such shares  should be  registered or to
whom payment  upon  redemption  of shares of Series B Preferred  Stock should be
made or the address to which the certificate or certificates  representing  such
shares,  or such  payment,  should be sent,  the  Company  shall be  entitled to
register such shares,  and make such payment,  in the name of the holder of such
Series B Preferred  Stock as shown on the records of the Company and to send the
certificate or certificates  representing such shares,  or such payment,  to the
address of such holder shown on the records of the Company.
 
               (E) Unless  otherwise  provided in the  Restated  Certificate  of
Incorporation,  as  amended,  of  the  Company,  all  payments  in the  form  of
dividends, distributions on voluntary or involuntary dissolution, liquidation or
winding-up or otherwise made upon the shares of Series B Preferred Stock and any
other stock ranking on a parity with the Series B Preferred  Stock and any other
stock ranking on a parity with the Series B Preferred Stock with respect to such
dividend or distribution  shall be made pro rata, so that amounts paid per share
on the Series B Preferred  Stock and such other stock shall in all cases bear to
each  other  the  same  ratio  that the  required  dividends,  distributions  or
payments, as the case may be, then payable per share on the shares of the Series
B Preferred Stock and such other stock bear to each other.
 
               (F) The Company may appoint,  and from time to time discharge and
change,  a  transfer  agent  for the  Series B  Preferred  Stock.  Upon any such
appointment  or discharge  of a transfer  agent,  the Company  shall send notice
thereof by first-class mail, postage prepaid, to each holder of record of Series
B Preferred Stock.
 
        FIFTH: The number of directors of the Corporation  shall be such as from
time to time shall be fixed by or in the manner provided in the bylaws but shall
not be less than three.
 
        SIXTH: In furtherance and not in limitation of the powers conferred by
statute, the Board of Directors is expressly authorized:
 
        (a) To make,  alter,  amend or repeal the bylaws of the Corporation;  to
issue,  sell,  grant options to purchase and dispose of shares of the authorized
and previously  unissued stock of any class of the Corporation and shares of its
outstanding stock of any class held in its treasury;  to issue, sell and dispose
of  the  bonds,  debentures,   notes  and  other  obligations  or  evidences  of
indebtedness of the Corporation,  including bonds,  debentures,  notes and other
obligations or evidences of  indebtedness of the  Corporation  convertible  into
stock of any class of the  Corporation;  to  authorize  and cause to be executed
mortgages  and liens  upon the real and  personal  property  of the  Corporation
including  after-acquired property; to declare and pay dividends on the stock of
any  class  of the  Corporation;  to set  apart  out of any of the  funds of the
Corporation  available  for dividends or otherwise a reserve or reserves for any
proper  purpose  and to abolish  any such  reserve in the manner in which it was
created.
 
        (b) To  designate  one or more  committees,  by  resolution  passed by a
majority of the whole  board,  each  committee  to consist of two or more of the
directors of the Corporation, which, to the extent provided in the resolution or
in the bylaws of the Corporation,  shall have and may exercise the powers of the
Board  of  Directors  in the  management  of the  business  and  affairs  of the
Corporation,  and may authorize the seal of the Corporation to be affixed to all
papers which may require it, and each  committee  shall have such name as may be
stated in the bylaws of the  Corporation  or as may be  determined  from time to
time by resolution adopted by the Board of Directors.
 
        (c) 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 for that purpose,  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 of the property and assets of the
Corporation,  including  its goodwill and its  corporate  franchises,  upon such
terms and  conditions  and for such  consideration,  which may be in whole or in
part shares of stock in, and/or other  securities  of, any other  corporation or
corporations,  as the Board of Directors  shall deem  expedient and for the best
interests of the Corporation.
 
        (d) To exercise all other corporate  powers and to do all other acts and
things as may be exercised or done by the Corporation,  subject, however, to the
provisions of the statutes of the State of Delaware and of this  Certificate  of
Incorporation and the bylaws of the Corporation.
 
        SEVENTH:  Elections of directors need not be by ballot unless the bylaws
of the Corporation shall so provide.
 
        EIGHTH:The  personal  liability of the directors of the  Corporation  is
hereby eliminated to the fullest extent permitted by paragraph (7) of subsection
(b) of Section 102 of the General  Corporation Law of Delaware,  as the same may
be amended and  supplemented.  No amendment to or repeal of this Article  EIGHTH
shall apply to or have any effect on the  liability or alleged  liability of any
director of the Corporation for or with respect to any acts or omissions of such
director occurring prior to such amendment or repeal.
 
        NINTH:  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 the right  reserved in this Article
NINTH.
 
 
               in witness whereof,  this Restated  Certificate of Incorporation,
which  restates,  integrates  but does not further  amend the  provisions of the
Corporation's   Certificate  of   Incorporation,   as  theretofore   amended  or
supplemented,  having  been  duly  adopted  by the  Board  of  Directors  of the
Corporation  in  accordance  with the  provisions  of Section 245 of the General
Corporation  Law of the State of Delaware,  has been  executed  this 26th day of
July, 1999.
 
 
 
                                                   TANDY CORPORATION
 
 
                                  By:    _______________________________
                                  Name:  Dwain H. Hughes
                                  Title: Senior Vice President and Chief
                                         Financial Officer