Document:

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                                                                    EXHIBIT 10.1

         ASSET PURCHASE AGREEMENT (this "AGREEMENT") dated as of September 18,
2000 between GUTLOVE AND SHIRVINT, INC., a New York corporation ("PURCHASER"),
and CONTROLLED DISTRIBUTION SYSTEMS, INC., a New Jersey corporation ("SELLER").

                                    RECITALS:

         WHEREAS, Seller desires to sell and transfer, and Purchaser desires to
purchase and acquire, certain assets of Seller, to the extent specified in
Section 1.1;

         NOW, THEREFORE, in consideration of the premises and of the mutual
agreements hereinafter contained, the parties hereto do agree as follows:

ARTICLE I. PURCHASE AND SALE OF ASSETS AND ASSUMPTION OF LIABILITIES.

         1.1. PURCHASE OF ASSETS. Upon the terms and subject to the conditions
of this Agreement, effective as of the open of business on October 2, 2000 (the
"CLOSING DATE"), Seller shall sell and transfer to Purchaser, and Purchaser
shall purchase and acquire from Seller all of the assets, rights and properties
of whatever nature owned or held by Seller relating to Seller's New York
cigarette vending route (the "BUSINESS") including one 1999 Chevrolet Astro
(Cargo)Van, serial number 1GCDM19W8XB135230 (the "VEHICLE") , all vending
machines, cigarette inventory, cash, equipment and contracts that are used in or
related to the Business (the "ASSETS"), free and clear of any lien, encumbrance,
claim, security interest or charge of any kind or nature (collectively,
"LIENS"), other than Liens relating to the GMAC Loan (as defined below). The
Assets shall include any non-remote controlled vending machines and related
spare parts held in storage by Seller. The consummation of the Acquisition on
the Closing Date is referred to herein as the "CLOSING".

         1.2. ASSUMPTION OF LIABILITIES. Purchaser shall not assume any
liabilities of Seller or relating to the Assets, except Purchaser shall assume
loan number 042-0412-10652 from General Motors Acceptance Corporation to Seller,
with a current outstanding balance at August 31, 2000 of approximately $10,800,
secured by the Vehicle (the "GMAC LOAN").

ARTICLE II. PURCHASE PRICE; CLOSING.

         2.1. PURCHASE PRICE. In consideration of the transfer and sale of the
Assets by Seller, Purchaser shall pay to Seller in cash an amount equal to the
dollar value of the cigarette and coin inventory as documented in APPENDIX A, to
be approved and executed by the parties on the Closing Date, and Seller shall
assume the GMAC Loan. Purchaser shall pay all of the purchase price to Seller by
wire transfer on October 2, 2000, except for $5,000 of the purchase price which
shall be paid by Purchaser to Seller by wire transfer within 60 days thereafter.

         2.2. CLOSING. The Closing shall take place effective as of the open of
business on October 2, 2000.

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ARTICLE III. REPRESENTATIONS AND WARRANTIES OF SELLER.

                  Seller represents and warrants to Purchaser as follows:

         3.1. CORPORATE ORGANIZATION. Seller is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation.

         3.2. AUTHORIZATION. Seller has full corporate power and authority to
enter into this Agreement and to carry out the transactions contemplated hereby.
Seller has taken all necessary action to authorize the execution and delivery of
this Agreement and the transactions contemplated hereby, and this Agreement is a
legal, valid and binding agreement of Seller enforceable in accordance with its
terms.

         3.3. TAXES. Seller hereby represents and warrants that Seller has filed
all required material tax returns and has paid all material taxes shown thereon
as owing.

         3.4. TITLE. At the Closing, Seller will transfer to Purchaser good and
valid title to the Assets free and clear of all Liens (other than any Liens
relating to the GMAC Loan).

ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF PURCHASER.

                  Purchaser represents and warrants to Seller as follows:

         4.1. CORPORATE ORGANIZATION. Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation.

         4.2. AUTHORIZATION. Purchaser has full corporate power and authority to
enter into this Agreement and to carry out the transactions contemplated hereby.
Purchaser has taken all necessary action to authorize the execution and delivery
of this Agreement and the transactions contemplated hereby, and this Agreement
is a legal, valid and binding agreement of Purchaser enforceable in accordance
with its terms.

         4.3. PERMITS AND LICENSES. Purchaser has or will obtain prior to the
Closing all permits, licenses and other governmental approvals necessary to own
and operate the Business.

ARTICLE V. COVENANTS AND AGREEMENTS OF THE PARTIES.

         5.1. INSTRUMENTS OF CONVEYANCE. At the Closing Seller shall execute and
deliver to Purchaser the General Assignment and Bill of Sale attached as
APPENDIX B (the "BILL OF SALE"), pursuant to which Seller will transfer the
Assets to Purchaser.

         5.2. POST-CLOSING MATTERS. Following the Closing Seller shall execute
such other documents and instruments as Purchaser may reasonably request to vest
in Purchaser good and valid title, free and clear of all Liens (other than any
Liens relating to the GMAC Loan), to the Assets.

         5.3. ASSUMPTION OF GMAC LOAN. Effective upon the Closing, Purchaser
hereby assumes, and agrees to indemnify and hold Purchaser harmless from and
against, all liabilities under the GMAC Loan with respect to all periods
commencing on or after the Closing Date.

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ARTICLE VI. GENERAL DISCLAIMERS OF WARRANTIES. By the execution of this
Agreement, the parties acknowledge, except as expressly set forth in this
Agreement, that Seller has made no representations or warranties as to the
quality or condition of the Business or the Assets, and that all warranties of
quality, fitness and merchantability and all other implied warranties of any
kind whatsoever are hereby excluded except as expressly set forth in this
Agreement, it being understood between the parties that the sale of the Business
and Assets is on an "AS IS" basis.

ARTICLE VII. SURVIVAL. The representations and warranties contained herein shall
not survive the Closing. The covenants and agreements contained in Sections 5.2,
5.3 and 8.5 shall survive the Closing.

ARTICLE VIII. MISCELLANEOUS.

         8.1. NOTICE. Any notice or other communication required or permitted
hereunder shall be in writing and shall be delivered personally (including by
courier) , sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid. Any such notice shall be deemed given when so
delivered personally, or if sent by facsimile transmission, when transmitted
(together with proof of sending), or, if mailed, when received, as follows:

(i) if to Seller, to:                      (ii) if to Purchaser to:

    Controlled Distribution Systems, Inc.       Gutlove and Shirvint, Inc.
    100 S.E. Second Street, 32nd Floor          39-26 23rd Street
    Miami, Florida  33131                       Long Island City, NY  11101
    Attention:     Richard J. Lampen            Attention:      Joseph Ruda
    Telephone:     (305) 579-8000               Telephone:      (718) 729-4066
    Facsimile:     (305) 579-8009               Facsimile:      (718) 729-3988

         8.2. ENTIRE AGREEMENT; AMENDMENT. This Agreement (including Appendix A
and Exhibit A hereto) constitutes the entire agreement and understanding of the
parties with respect to the subject matter hereof and supersedes all prior
agreements and undertakings, written or oral, of any and every nature with
respect thereto. The terms of this Agreement cannot be changed, modified or
released orally.

         8.3. GOVERNING LAW. This Agreement shall be governed by the internal
laws of the state of New Jersey (without regard to principles of conflicts of
law).

         8.4. BINDING EFFECT; NO ASSIGNMENT; NO THIRD PARTY BENEFICIARY. This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns. This Agreement is not
assignable without the prior written consent of each of the parties hereto. This
Agreement does not create any rights, claims or benefits inuring to any person
that is not a party hereto or create or establish any third party beneficiary
hereto.

         8.5. TAXES. Purchaser shall bear and pay all sales, transfer, stamp or
other similar taxes imposed in connection with the acquisition. Except as
provided in the preceding sentence, Seller will indemnify and hold Purchaser
harmless from and against any and all liability for Federal, state, local or
foreign taxes (including any interest, penalties or additions to tax that may
become payable in respect thereof, after taking into account any tax benefits to
Purchaser in respect of the incurrence or payment of any such tax liabilities)

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assessed against or payable by Seller with respect to any period ending on or
before the Closing Date or any period ending on or before the last day of
Seller's taxable year.

         8.6. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties to this Agreement may execute this Agreement
by signing any such counterpart. In addition, this Agreement may be executed by
facsimile signatures, which signatures shall be deemed to be originals for
purposes hereof.

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         IN WITNESS WHEREOF, each of the parties hereto has caused its duly
authorized representative to execute this Agreement as of the date first set
forth above.

                             GUTLOVE AND SHIRVINT, INC.

                             By: /s/ JOSEPH RUDA
                             ---------------------------------------------
                             NAME:    JOSEPH RUDA
                             TITLE:   PRESIDENT AND CHIEF EXECUTIVE OFFICER

                             CONTROLLED DISTRIBUTION SYSTEMS, INC.

                             By: /s/ RICHARD J. LAMPEN
                             ---------------------------------------------
                             NAME:    RICHARD J. LAMPEN
                             TITLE:   PRESIDENT

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                                   APPENDIX A

CASH AND INVENTORY ANALYSIS

Machines with change inventory:                                0.00
Amount of change inventory:                                    0.00
                                                        -----------
Total change inventory:                                        0.00
                                                        ===========
Packs in inventory with State license:                     1,800.00
Cost of State licensed cigarettes:                      X    $3.626
                                                        -----------
Total State licensed inventory:                           $6,526.80
                                                        ===========
Packs in inventory with City license:                      7,453.00
Cost of City licensed cigarettes:                       X    $3.705
                                                        -----------
Total City licensed inventory:                           $27,613.37
                                                        ===========
TOTALS

Total change inventory:                                        0.00
Total State licensed inventory:                           $6,526.80
Total City licensed inventory:                            27,613.37
                                                        -----------
TOTAL CASH AND INVENTORY VALUE:                          $34,140.17
                                                        ===========

Accepted and agreed to as of this 2nd day of October, 2000:

Gutlove and Shirvint, Inc.

By: /s/ JOSEPH RUDA
   ------------------------------------
Controlled Distributions Systems, Inc.

By: /s/ J. BRYANT KIRKLAND III
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                                                                     Exhibit 4.1

                            CERTIFICATE OF AMENDMENT

                                       OF

                               UNIFRAX CORPORATION

            --------------------------------------------------------

                        UNDER SECTION 242 OF THE DELAWARE

                             GENERAL CORPORATION LAW

     UNIFRAX CORPORATION, a corporation organized and existing under and by
virtue of the General Corporation Law of the State of Delaware (the
"CORPORATION") DOES HEREBY CERTIFY:

          1. The name of the corporation is Unifrax Corporation and the date of
filing the original Certificate of Incorporation of this corporation with the
Secretary of State of the State of Delaware was December 17, 1986. Certificates
of Amendment of the Certificate of Incorporation were filed with the Secretary
of State of the State of Delaware on April 12, 1988; February 29, 1996; and
August 7, 1997.

          2. The Certificate of Incorporation of the Corporation shall be
amended to create a series of preferred stock (the "SERIES A PREFERRED STOCK")
having rights and preferences superior to the rights and preferences of the
currently outstanding preferred stock (the "SERIES B PREFERRED STOCK" and
together with the Series A Preferred Stock, the "PREFERRED STOCK") and common
stock (the "COMMON STOCK"). To effect such amendment, Article FOURTH of the
Certificate of Incorporation shall be deleted in its entirety and the following
inserted in lieu thereof:

               FOURTH: The total number of shares of capital stock that the
               Corporation is authorized to issue is 80,000 shares as follows:
               40,000 shares of Common Stock, par value $0.01 per share; 30,000
               shares of Series A Preferred Stock, par value $0.01 per share;
               and 10,000 shares of Series B Preferred Stock, par value $0.01
               per share. The relative rights, preferences and limitations of
               the shares of each class are as follows:

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               (A) SERIES A PREFERRED STOCK.

                    (1) VOTING RIGHTS.

                         (a) Except as otherwise provided by law or otherwise
                         set forth herein, holders of Series A Preferred Stock
                         shall have no right or power to vote on any question or
                         in any proceeding or to be represented at, to receive
                         notice of or to give their consent for, any meeting of
                         the Corporation's stockholders. On any matters on which
                         the holders of the Series A Preferred Stock shall be
                         entitled to vote, they shall be entitled to one vote
                         for each share held.

                         (b) If, on January 20 of any year (beginning with
                         January 20, 2001), any dividends on the Series A
                         Preferred Stock in respect of the immediately preceding
                         calendar year shall be in arrears, then during the
                         period (herein called the "SERIES A PREFERRED STOCK
                         VOTING PERIOD") commencing with such time and ending
                         with the time when all such arrears in dividends on the
                         Series A Preferred Stock shall have been paid, at any
                         meeting of the stockholders of the Corporation held for
                         the election of directors during the Series A Preferred
                         Stock Voting Period, the holders of a majority of the
                         outstanding shares of Series A Preferred Stock
                         represented in person or by proxy at said meeting
                         shall be entitled, as a class, to the exclusion of the
                         holders of all other classes or series of stock of the
                         Corporation, to elect one director of the Corporation.
                         During any Series A Preferred Stock Voting Period, the
                         Board of Directors of the Corporation shall be expanded
                         by one director. The remaining directors shall be
                         elected by the other classes or series of stock
                         entitled to vote therefor, at each meeting of
                         stockholders held for the purpose of electing
                         directors.

                         (c) At any time when such voting right shall have
                         vested in the holders of Series A Preferred Stock and
                         if such right shall not already have been initially
                         exercised, a proper officer of the Corporation shall,
                         upon the written request of any holder of record of
                         Series A Preferred Stock then outstanding, addressed to
                         the Secretary of the Corporation, call a special
                         meeting of holders of Series A Preferred Stock. Such
                         meeting shall be held at the earliest practicable date
                         upon the notice required for annual meetings of
                         stockholders at

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                    the place for holding annual meetings of stockholders of the
                    Corporation or, if none, at a place designated by the
                    Secretary of the Corporation. If such meeting shall not be
                    called by the proper officers of the Corporation within 30
                    days after the personal service of such written request upon
                    the Secretary of the Corporation, or within 30 days after
                    mailing the same within the United States, by registered
                    mail, addressed to the Secretary of the Corporation at its
                    principal office (such mailing to be evidenced by the
                    registry receipt issued by the postal authorities), then the
                    holders of record of 10% of Series A Preferred Stock then
                    outstanding may designate in writing a holder of Series A
                    Preferred Stock to call such meeting at the expense of the
                    Corporation, and such meeting may be called by such person
                    so designated upon the notice required for annual meetings
                    of stockholders and shall be held at the same place as is
                    elsewhere provided in this Section (A)(1)(c). Any holder of
                    Series A Preferred Stock that would be entitled to vote at
                    such meeting shall have access to the stock books of the
                    Corporation for the purpose of causing a meeting of
                    stockholders to be called pursuant to the provisions of this
                    Section (A)(1)(c). Notwithstanding the other provisions of
                    this Section (A)(1)(c), however, no such special meeting
                    shall be called during a period within 90 days immediately
                    preceding the date fixed for the next annual meeting of
                    stockholders.

                         (d) At any meeting held for the purpose of electing
                    directors at which the holders of Series A Preferred Stock
                    shall have the right to elect directors as provided herein,
                    shares of Series A Preferred Stock shall be required and be
                    sufficient to constitute a quorum of such series for the
                    election of directors by such series. At any such meeting or
                    adjournment thereof (i) the absence of a quorum of the
                    holders of Series A Preferred Stock shall not prevent the
                    election of directors other than those to be elected by the
                    holders of stock of such series and the absence of a quorum
                    or quorums of the holders of capital stock entitled to elect
                    such other directors shall not prevent the election of
                    directors to be elected by the holders of Series A Preferred
                    Stock and (ii) in the absence of a quorum of the holders of
                    any class of stock entitled to vote for the election of
                    directors, a majority of the holders present in person or by
                    proxy of such class shall have the power to

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                    adjourn the meeting for the election of directors that the
                    holders of such class are entitled to elect, from time to
                    time without notice (except as required by law) other than
                    announcement at the meeting, until a quorum shall be
                    present.

                         (e) Any directors who have been elected by holders of
                    Series A Preferred Stock may be removed at any time during a
                    Series A Preferred Stock Voting Period, either with or
                    without cause, by, and only by, the affirmative votes of the
                    holders of record of a majority of the outstanding shares of
                    Series A Preferred Stock given at a special meeting of such
                    stockholders called for that purpose, and any vacancy
                    thereby created may be filled during such Series A Preferred
                    Stock Voting Period by the holders of Series A Preferred
                    Stock, present in person or represented by proxy at such
                    meeting. Any director elected by holders of Series A
                    Preferred Stock who dies, resigns, or otherwise ceases to be
                    a director shall be replaced by the affirmative vote of the
                    holders of record of a majority of the outstanding shares of
                    Series A Preferred Stock at a special meeting of
                    stockholders called for that purpose.

                         (f) At the end of the Series A Preferred Stock Voting
                    Period, the holders of Series A Preferred Stock shall be
                    automatically divested of all voting power vested in them
                    under Section (A)(1)(b) of this Article FOURTH, but subject
                    always to the subsequent vesting hereunder of voting power
                    in the holders of Series A Preferred Stock in the event of
                    any similar cumulated arrearage in payment for dividends
                    occurring thereafter. The terms of all directors elected
                    pursuant to the provisions of Section (A)(1)(b) of this
                    Article FOURTH shall in all events expire at the end of the
                    Series A Preferred Stock Voting Period and upon such
                    expiration the number of directors constituting the Board of
                    Directors shall, without further action, be reduced by one,
                    subject always to the increase of the number of directors
                    pursuant to Section (A)(1)(b) of this Article FOURTH in case
                    of the future right of the holders of Series A Preferred
                    Stock to elect a director as provided therein.

                    (2) DIVIDENDS.

                         (a) Prior and in preference to the holders of the
                    Series B Preferred Stock and the Common Stock and of any

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                    other junior stock, the holders of shares of Series A
                    Preferred Stock shall be entitled to receive, when, as and
                    if declared by the Board of Directors out of funds legally
                    available for the purpose, after taking into account any
                    permitted revaluation of the assets of the Corporation (i)
                    the payment of a quarterly cumulative dividend (the "SERIES
                    A PREFERRED DIVIDENDS") at an annual rate as follows (such
                    dividend computation to be based on the Series A Preferred
                    Stock Liquidation Preference for each share of the Series A
                    Preferred Stock held by such holder): (A) 7% for the period
                    commencing on the date of issuance of the Series A Preferred
                    Stock and ending on December 31, 2001, (B) 8.5% for the
                    period commencing on January 1, 2002 and ending on December
                    31, 2002, and (C) 10% for the period commencing January 1,
                    2003 and continuing until all shares of Series A Preferred
                    Stock are redeemed in accordance with Section (A)(3) of this
                    Article FOURTH. The Series A Preferred Dividends, to the
                    extent so declared by the Board of Directors, shall be
                    payable in cash on March 31, June 30, September 30 and
                    December 31 of each year with respect to the three-month
                    period ending on each such date (each such date being
                    referred to herein as a "QUARTERLY DIVIDEND PAYMENT DATE")
                    commencing on December 31, 2000; PROVIDED, HOWEVER, that the
                    dividend otherwise due on the December 31 Quarterly Dividend
                    Payment Date and any other dividends not declared or paid on
                    any Quarterly Dividend Payment Date in that year may be
                    declared and paid on any day in December of that year or
                    January of the following year up to but no later than
                    January 20th.

                    (b) 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 not be more than 60 days
                    prior to the date fixed for the payment thereof.

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                    (c) Subject to Section (C)(2) of this Article FOURTH,
                    the Corporation shall incur no liability to any holder of
                    the Series A Preferred Stock in connection with the failure
                    of the Corporation to declare or pay any Series A Preferred
                    Dividends.

                    (3) REDEMPTION.

                    (a) The Corporation may at any time redeem shares of
                    Series A Preferred Stock then outstanding by resolution of
                    its Board of Directors by giving notice as provided in
                    Section (A)(3)(b) below, at a price per share equal to the
                    Series A Liquidation Preference plus accrued and unpaid
                    dividends up to the Redemption Date (the "SERIES A
                    REDEMPTION PRICE").

                    (b) The Corporation shall deliver written notice of
                    each redemption of Series A Preferred Stock pursuant to
                    Section (A)(3)(a) to each record holder as soon as
                    reasonably practicable prior to the date on which such
                    redemption is to be made. Such written notice shall be
                    mailed to each holder of record of shares of Series A
                    Preferred Stock to be redeemed in a postage-prepaid envelope
                    addressed to such holders at its post office address as
                    shown on the records of the Corporation, notifying such
                    holder of the election of the Corporation to redeem such
                    shares, stating the date fixed for redemption thereof
                    (herein referred to as the "REDEMPTION DATE"), and calling
                    upon such holders to surrender to the Corporation on the
                    Redemption Date at the place designated in such notice its
                    certificate or certificates representing the number of
                    shares specified in such notice of redemption. On or after
                    the Redemption Date, each holder of shares of Series A
                    Preferred Stock to be redeemed shall present and surrender
                    its certificate or certificates for such shares to the
                    Corporation at the place designated in such notice and
                    thereupon the Series A Redemption Price shall be paid to or
                    on the order of the person whose name appears on such
                    certificate or certificates as the owner thereof and each
                    surrendered certificate shall be canceled.

                    (c) In case less than all the shares represented by
                    such certificate are redeemed, a new certificate shall be
                    issued representing the unredeemed shares.

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                    (d) From and after the Redemption Date (unless default
                    shall be made by the Corporation in payment of the Series A
                    Redemption Price) all dividends on the shares of Series A
                    Preferred Stock designated for redemption in such notice
                    shall cease to accrue, and all rights of the holders thereof
                    as stockholders of the Corporation, except the right to
                    receive the Series A Redemption Price upon the surrender of
                    certificates representing the same, shall cease and
                    terminate and such shares shall not thereafter be
                    transferred (except with the consent of the Corporation) on
                    the books of the Corporation, and such shares shall not be
                    deemed to be outstanding for any purpose whatsoever.

                    (4) REACQUIRED SHARES. Any shares of Series A Preferred
                        Stock purchased or otherwise acquired by the Corporation
                        in any manner whatsoever shall be retired an canceled
                        promptly after the acquisition thereof and may not be
                        reissued.

                    (5) CERTAIN RESTRICTIONS. If, on January 20 of any year
                        (beginning with January 20, 2001), whenever any
                        dividends payable on the Series A Preferred Stock in
                        respect of the immediately preceding calendar year are
                        in arrears, thereafter and until all such accrued and
                        unpaid dividends on shares of Series A Preferred
                        Stock shall have been paid in full, the Corporation
                        shall not:

                         (a) declare or pay dividends on, 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; or

                         (b) redeem, 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 for any
                         such junior stock in exchange for shares of any stock
                         of the Corporation ranking junior (either as to
                         dividends or upon liquidation, dissolution or winding
                         up) to the Series A Preferred Stock.

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                    (6) LIQUIDATION, DISSOLUTION OR WINDING UP.

                         (a) Upon any liquidation, dissolution or winding up 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 including, without
                         limitation, the Common Stock and Series B Preferred
                         Stock, unless, prior thereto, the holders of shares of
                         Series A Preferred Stock shall have received $1,000
                         (the "SERIES A LIQUIDATION PREFERENCE") for each share
                         plus an amount equal to accrued and unpaid dividends
                         and distributions thereon, whether or not declared, to
                         the date of such payment.

                         (b) For the purpose of Section (A)(6)(a) hereof,
                         neither the voluntary sale, lease, conveyance, exchange
                         or transfer (for cash, shares of stock, securities or
                         other consideration) of all or substantially all the
                         property or assets of the Corporation, nor the merger
                         or consolidation of the Corporation with one or more
                         other corporations, shall be deemed to be a
                         liquidation, dissolution or winding up, voluntary or
                         involuntary, unless such voluntary sale, lease,
                         conveyance, exchange or transfer shall be in
                         connection with a plan of liquidation, dissolution or
                         winding up of the Corporation; PROVIDED, HOWEVER, that
                         the sale, lease, conveyance, exchange or transfer of
                         all or substantially all of the Corporation's assets or
                         the merger or consolidation of the Corporation that
                         results in the holders of Common Stock of the
                         Corporation receiving in exchange for such Common Stock
                         either cash or notes, debentures or other evidences of
                         indebtedness or obligations to pay cash or preferred
                         stock of the surviving entity (whether or not the
                         surviving entity is the Corporation) which ranks on a
                         parity with or senior to the Series A Preferred Stock
                         with respect to liquidation or dividends shall at the
                         election of the holder of Series A Preferred Stock be
                         deemed to be a voluntary liquidation, dissolution
                         or winding up of the affairs of the Corporation within
                         the meaning of Section (A)(6)(a). In the cases of
                         merger of consolidation of the Corporation where
                         holders of Common Stock receive, in exchange for such
                         Common Stock, common stock or preferred stock which is
                         junior to the Series A Preferred Stock with respect to
                         liquidation or dividends in the surviving entity
                         (whether or not the surviving

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                    entity is the Corporation) or preferred stock of another
                    entity, the Series A Preferred stock shall be deemed to be
                    preferred stock of such surviving entity or other entity, as
                    the case may be, with the same annual dividend rate and
                    equivalent rights to the rights set forth herein and the
                    merger or consolidation agreement shall expressly so
                    provide.

                    (7) ADJUSTMENT TO SERIES A LIQUIDATION PREFERENCE. If (a)
                    the Corporation actually pays any amount pursuant to one or
                    more guaranty agreements issued by the Corporation in favor
                    of Societe Europeenne de Produits Refractaires ("SEPR") on
                    account of the indebtedness outstanding under that certain
                    Limited Recourse Promissory Note, dated October 4, 2000,
                    issued by Unifrax Holding Co. in favor of SEPR in the
                    initial principal amount of TWENTY MILLION TWO HUNDRED
                    THOUSAND U.S. DOLLARS ($20,200,000) (the amount so paid
                    being hereinafter referred to as the "GUARANTY PAYMENT"), or
                    (b) the aggregate principal amount of that certain
                    Subordinated Promissory Note, dated October 4, 2000, issued
                    by the Corporation in favor of SEPR in the initial principal
                    amount of EIGHT MILLION U.S. DOLLARS ($8,000,000) is
                    increased to an amount in excess of EIGHT MILLION U.S.
                    DOLLARS ($8,000,000) pursuant to the provisions of the first
                    paragraph thereof (the "NOTE PAYMENT"), the Series A
                    Liquidation Preference in respect of each share of Series A
                    Preferred Stock shall, without further act or deed, be
                    immediately and permanently reduced by a pro rata portion of
                    the Guaranty Payment or the Note Payment, as the case
                    may be.

                    (8) CONVERSION RIGHTS. The Series A Preferred Stock shall
                    not be convertible.

                    (9) RANK. With regard to the rights to receive dividends and
                    distributions upon liquidation, dissolution or winding up of
                    the Corporation, the Series A Preferred Stock shall rank
                    prior to the Common Stock and the Series B Preferred Stock.

                    (10) AMENDMENT. The Certificate of Incorporation of the
                    Corporation shall not be amended in any manner that would
                    materially alter or change the powers, preferences or
                    special rights of the Series A Preferred

                                     Page 9

<PAGE>   10

               Stock so as to affect them adversely without the affirmative vote
               of the holders of at least a majority of the outstanding shares
               of Series A Preferred Stock, voting together as a single class.

               (B) SERIES B PREFERRED STOCK.

                    (1) VOTING RIGHTS. Except as otherwise provided by
               applicable law, and subject to Section (A)(1) of this Article
               FOURTH, the voting power for the election of directors and for
               all other purposes shall be vested in the holders of the Series B
               Preferred Stock together with the holders of the Common Stock.
               The holders of the Series B Preferred Stock shall each have one
               vote per share. There shall be no cumulative voting.

                    (2) DIVIDENDS.

                         (a) After the payment to each holder of the Series A
                    Preferred Stock of the Series A Preferred Dividends, each
                    holder of the Series B Preferred Stock shall be entitled to
                    receive, when and as declared by the Board of Directors and
                    from the assets of the Corporation available for the payment
                    of dividends under applicable law, a semi-annual cumulative
                    dividend (the "SERIES B PREFERRED DIVIDENDS") at the rate of
                    6% per annum on the amount of $1,500 (the "SERIES B
                    PREFERRED LIQUIDATION VALUE") for each share of the Series B
                    Preferred Stock held by such holder. The Series B Preferred
                    Dividends, to the extent so declared by the Board of
                    Directors, shall be payable in cash on June 30 of each year
                    with respect to the six-month period ending on June 30 of
                    such year and on December 31 of each year with respect to
                    the six-month period ending on December 31 of such year
                    (individually a "SIX-MONTH PERIOD" and collectively
                    "SIX-MONTH PERIODS") to holders of record of the shares of
                    the Series B Preferred Stock on the first day of June and
                    December, respectively. The Series B Preferred Dividends
                    shall accrue on each share of the Series B Preferred Stock
                    from and including the date of the original issuance of such
                    share (without regard to any transfer of such share on the
                    stock records of the Corporation) to and including the date
                    on which (i) such share is redeemed by the Corporation,
                    whether pursuant to Section (B)(3) of this Article FOURTH or
                    otherwise, (ii) such share is converted to Common Stock
                    pursuant to Section (B)(5)

                                     Page 10

<PAGE>   11

                    of this Article FOURTH, or (iii) a distribution is made with
                    respect to such share pursuant to Section (B)(4) of this
                    Article FOURTH.

                         (b) Subject to Section (C)(2) of this Article FOURTH,
                    the Corporation shall incur no liability to any holder of
                    the Series B Preferred Stock in connection with the failure
                    of the Corporation to declare or pay any Series B Preferred
                    Dividends.

                    (3) REDEMPTION.

                         (a) Subject to Section (A)(5) of this Article FOURTH,
                    the Corporation may redeem all, but not less than all, of
                    the outstanding shares of Series B Preferred Stock. Notice
                    of any redemption by the Corporation of Series B Preferred
                    Stock specifying the time and place of redemption, the
                    Series B Redemption Price and any conditions to be satisfied
                    prior to such redemption shall be mailed by certified mail,
                    return receipt requested, to each holder of record of shares
                    of the Series B Preferred Stock, at the address for such
                    holder shown on the Corporation's records, not more than
                    sixty, and not less than seven, days prior to the date on
                    which such redemption is to be effective. Upon mailing any
                    such notice of redemption, the Corporation shall, subject to
                    the satisfaction of all conditions set forth in such notice,
                    become obligated to redeem at the time of redemption
                    specified in such notice all outstanding shares of Series B
                    Preferred Stock.

                         (b) The redemption price for each share of Series B
                    Preferred Stock to be redeemed pursuant to this Article
                    FOURTH shall be equal to the Series B Preferred Liquidation
                    Value of such share, plus an amount equal to all Series B
                    Preferred Dividends that are unpaid on such share with
                    respect to any prior Six-Month Period (the "SERIES B
                    REDEMPTION PRICE").

                         (c) On or before the date set for the redemption of the
                    Series B Preferred Stock pursuant to this Article FOURTH,
                    each holder of shares of the Series B Preferred Stock shall
                    surrender all certificates for such shares to the
                    Corporation at the then principal place of business of the
                    Corporation and, upon doing so, shall be entitled to receive
                    payment of the Series B Redemption Price. All certificates
                    surrendered for redemption shall

                                     Page 11

<PAGE>   12

                    be duly endorsed, or shall be accompanied by separate stock
                    transfer powers duly endorsed, for transfer to the
                    Corporation.

                    (4) LIQUIDATION, DISSOLUTION OR WINDING UP.

                         (a) After the payment to the holders of the Series A
                    Preferred Stock of the Series A Liquidation Preference for
                    each share plus an amount equal to all accrued and unpaid
                    dividends thereon to the date of such payment, the holders
                    of the Series B Preferred Stock shall be entitled, before
                    any payment or other distribution is made to the holders of
                    the Common Stock in connection with such liquidation,
                    dissolution or winding up, to be paid from the assets of the
                    Corporation legally available therefor, an amount in cash
                    equal to the Series B Preferred Liquidation Value for each
                    share of the Series B Preferred Stock, plus an amount equal
                    to all Series B Preferred Dividends that are unpaid on such
                    share with respect to any prior Six-Month Period as of the
                    date of such payment.

                         (b) To the extent the assets of the Corporation legally
                    available for distribution in the event of a liquidation,
                    dissolution or winding up of the Corporation are
                    insufficient to pay in full the Series B Preferred
                    Liquidation Value, plus an amount equal to all Series B
                    Preferred Dividends that are unpaid with respect to any
                    prior Six-Month Period as of the date of such payment, for
                    all shares of the Series B Preferred Stock, the Corporation
                    shall pay to the holders of the Series B Preferred Stock a
                    pro rata amount of the Series B Preferred Liquidation Value.

                         (c) Neither the sale or other transfer of all or
                    substantially all of the assets of the Corporation to, nor
                    the merger or consolidation of the Corporation into or with,
                    any other entity shall not be deemed a liquidation,
                    dissolution or winding up of the Corporation for the
                    purposes of this Section (B)(4).

                    (5) CONVERSION RIGHTS.

                         (a) Subject to Section (B)(5)(c) of this Article
                    FOURTH, shares of the Series B Preferred Stock shall be
                    convertible into fully paid and non-assessable shares of the
                    Common Stock for each share of the Series B

                                     Page 12

<PAGE>   13

                    Preferred Stock. A holder of any shares of the Series B
                    Preferred Stock may convert such shares to shares of the
                    Common Stock upon (i) giving notice in writing to the Board
                    of Directors of the election to so convert and (ii)
                    surrendering all certificates for such shares to the Board
                    of Directors duly endorsed, or accompanied by separate stock
                    powers duly endorsed, for transfer to the Corporation. If
                    the Corporation redeems any shares of the Series B Preferred
                    Stock, whether pursuant to this Article FOURTH or otherwise,
                    such right of conversion shall terminate, as to the shares
                    so redeemed, upon payment of the Series B Redemption Price.
                    In the event of the liquidation, dissolution or winding up
                    of the Corporation, such right of conversion shall terminate
                    at the close of business on the tenth business day prior to
                    the date set for the first distribution to the holders of
                    the Series B Preferred Stock.

                         (b) Upon any conversion of shares of the Series B
                    Preferred Stock into shares of Common Stock pursuant to this
                    Article FOURTH, a holder of the Series B Preferred Stock
                    shall continue to be entitled to receive, when and as
                    declared by the Board of Directors and from the assets of
                    the Corporation available therefor, dividends that are
                    unpaid as of the date of such conversion with respect to any
                    prior Six-Month Period on the shares of the Series B
                    Preferred Stock so converted; PROVIDED, HOWEVER, that no
                    other payment shall be made in connection with such
                    conversion.

                         (c) The number of shares of Common Stock into which
                    each share of the Series B Preferred Stock is convertible
                    pursuant to Section (B)(5)(a) of this Article FOURTH shall
                    be subject to adjustment from time to time as follows:

                              (i) If the Corporation shall (A) declare a
                         dividend on the Common Stock payable in shares of the
                         Common Stock, (B) subdivide the outstanding shares of
                         the Common Stock, (C) combine the outstanding shares of
                         the Common Stock into a smaller number of shares, or
                         (D) issue by reclassification of the Common Stock any
                         shares of the Corporation, each holder of the Series B
                         Preferred Stock shall thereafter be entitled upon a
                         conversion pursuant to this Section (B)(5) to receive
                         for each share of the

                                     Page 13

<PAGE>   14

                         Series B Preferred Stock the number of shares of the
                         Common Stock of the Corporation that he, she or it
                         would have owned or been entitled to receive after the
                         occurrence or any event described in clauses (A) (B),
                         (C) and (D) of this sentence had such share been
                         converted immediately prior to the occurrence of such
                         event. Such adjustment shall become effective
                         immediately after the close of business on the record
                         date for such dividend or the date upon which any
                         subdivision, combination or reclassification shall
                         become effective.

                              (ii) If the Corporation shall (A) merge or
                         consolidate into or with another entity or (B) sell or
                         otherwise transfer all or substantially all of its
                         assets, each share of the Series B Preferred Stock then
                         outstanding shall thereafter be convertible pursuant to
                         this Section (B)(5) into the kind and amount of
                         securities, cash and other assets received by a holder
                         of the number of shares of Common Stock into which such
                         share could have been converted immediately prior to
                         the occurrence of any event described in clauses (A)
                         and (B) of this sentence, and shall have no other
                         conversion rights.

                              (iii) Whenever any adjustment is required in the
                         share of Common Stock into which each share of the
                         Series B Preferred Stock is convertible pursuant to
                         Sections (B)(5)(c)(i) and (B)(5)(c)(ii) of this Article
                         FOURTH, the Corporation shall maintain, at its
                         principal place of business, a statement describing in
                         reasonable detail such adjustment and the method of
                         calculation used in calculating such adjustment.

                              (iv) The Corporation shall at all times reserve
                         and keep available out of the authorized but unissued
                         shares of the Common Stock the full number of shares of
                         the Common Stock into which all shares of the Series B
                         Preferred Stock from time to time outstanding are
                         convertible pursuant to this Section (B)(5).
                         Notwithstanding the immediately preceding sentence,
                         shares of the Common Stock held in the treasury of the
                         Corporation may, in the

                                     Page 14

<PAGE>   15

                         discretion of the Corporation, be reissued in
                         connection with any such conversion of shares of the
                         Series B Preferred Stock pursuant to this Section (B
                         (5).

                              (v) Shares of the Series B Preferred Stock
                         converted into Common Stock shall have the status of
                         authorized but unissued sharers of Series B Preferred
                         Stock and such shares may be reissued by the
                         Corporation as shares of Series B Preferred Stock.

               (C) COMMON STOCK.

                    (1) VOTING RIGHTS. Except as otherwise provided by
               applicable law, the voting power for the election of directors
               and for all other purposes shall be vested in the holders of the
               Common Stock together with the Series B Preferred Stock. The
               holders of the Common Stock shall have one vote per share. There
               shall be no cumulative voting.

                    (2) DIVIDENDS. If the Series A Preferred Dividends and
               Series B Preferred Dividends (collectively, the "PREFERRED
               DIVIDENDS") are not in arrears, the Board of Directors may, but
               shall not be required to, declare and pay dividends on the Common
               Stock, such dividends to be payable in an equal amount per share
               of Common Stock from the assets of the Corporation available for
               the payment of dividends under applicable law; PROVIDED, HOWEVER,
               that no such dividends shall be declared and paid on the Common
               Stock of the Corporation unless all Preferred Dividends shall
               have been paid on each share of the Preferred Stock.

                    (3) LIQUIDATION, DISSOLUTION OR WINDING UP.

                         (a) After the payment to the holders of the Series A
                    Preferred Stock of the Series A Liquidation Preference for
                    each share plus an amount equal to all accrued and unpaid
                    dividends thereon to the date of such payment, and the
                    payment to the holders of Series B Preferred Stock of the
                    Series B Preferred Liquidation Value plus an amount equal to
                    all accrued and unpaid dividends thereon to the date of such
                    payment, the holders of the Common Stock shall be entitled,
                    to the exclusion of the holders of the Preferred Stock, to
                    receive, equally on a

                                     Page 15

<PAGE>   16

                    share-for-share basis, all of the remaining assets of the
                    Corporation available for distribution to its stockholders.

                         (b) Neither the sale or other transfer of all or
                    substantially all of the assets of the Corporation to, nor
                    the merger or consolidation of the Corporation into or with,
                    any other entity shall be deemed a liquidation, dissolution
                    or winding up of the Corporation for the purposes of this
                    Section (C)(3).

                    3. Pursuant to sec. 242(b)(1) of the Delaware General
               Corporation Law, the Board of Directors of the Corporation duly
               adopted a resolution setting forth the amendment to the
               Certificate of Incorporation being adopted in this Certificate,
               declaring its advisability and calling a special meeting of the
               stockholders of the Corporation entitled to vote in respect
               thereof for the consideration of such amendment. Such amendment
               has been duly adopted by the unanimous written consent of the
               stockholders of the Corporation in accordance with Sections 228
               and 242(b) of the Delaware General Corporation Law.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

                                     Page 16

<PAGE>   17

     IN WITNESS WHEREOF, the Corporation has caused this Certificate to be
signed by William P. Kelly, its President, and Mark D. Roos, its Secretary, on
the 4th day of October, 2000.

                                        UNIFRAX CORPORATION

                                        By: /s/ William P. Kelly
                                            ------------------------------------
                                            Name: William P. Kelly
                                            Title: President and CEO

Attest:

By: /s/ Mark D. Roos
    ------------------------------------
    Name: Mark D. Roos
    Title: Vice President, CFO and Secretary

                                     Page 17

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