Document:

<PAGE>

                                                                     EXHIBIT 4.8

                          CERTIFICATE OF INCORPORATION

                                       OF

                             LSS MERGING CORPORATION

         FIRST:   The name of the Corporation is:

                  LSS Merging Corporation

         SECOND:  The address of the Corporation's registered office in the
State of Delaware is Corporation Trust Center, 1209 Orange Street, in the City
of Wilmington, County of New Castle. The name of the Corporation's registered
agent at such address is The Corporation Trust Company.

         THIRD:   The purpose of the Corporation is to engage in any lawful
act or activity for which corporations may be organized under the General
Corporation Law of Delaware.

         FOURTH:  The total number of shares of all classes of stock which the
Corporation shall have the authority to issue is 1,000 shares of Common Stock,
$1.00 par value.

         FIFTH:   The name and mailing address of the incorporator of the
Corporation are as follows:

<TABLE>
<CAPTION>

                     NAME                           ADDRESS
                     ----                           -------
              <S>                           <C>
              Sherry S. Treston             One First National Plaza
                                            Chicago, Illinois  60603

</TABLE>

         SIXTH:   The number of directors constituting the Board of Directors
shall be the number as shall from time to time be fixed by the By-Laws of the
Corporation.

         SEVENTH: In furtherance and not in limitation of the powers
conferred by statute, the Board of Directors is expressly authorized to make,
alter or repeal the By-Laws of the Corporation.

         EIGHTH:  The Corporation reserves the right to amend, alter, change
or repeal any provision contained in this Certificate of Incorporation, the
manner now or hereafter prescribed by statute, and all rights conferred upon
the stockholders herein are granted subject to this reservation.

         NINTH:   Each person who is or was a director or officer of the
Corporation, and each person who serves or served at the request of the
Corporation as a director or officer of another enterprise, shall be
indemnified by the Corporation in accordance with, and to the fullest

<PAGE>

extent authorized by, the General Corporation Law of the State of Delaware as
it may be in effect from time to time.

         THE UNDERSIGNED, being incorporator hereinbefore named, for the
purpose of forming a corporation pursuant to the General Corporation Law of
the State of Delaware, makes this Certificate, hereby declaring and certifying
that the facts herein stated are true, and accordingly has hereunto set the
hand and seal of the undersigned this 6th day of March, 1986.

                                                 /s/ Sherry S. Treston
                                              ---------------------------------
                                                 Sherry S. Treston

                                       2

<PAGE>

                              CERTIFICATE OF MERGER

                                       of

                             LONE STAR STEEL COMPANY
                               A Texas Corporation

                                      into

                             LSS MERGING CORPORATION
                             A Delaware Corporation

                            UNDER SECTION 252 OF THE
                        DELAWARE GENERAL CORPORATION LAW

         The undersigned corporation does hereby certify:

         FIRST:   That the name and state of incorporation of each of the
constituent corporations of the merger is as follows:

<TABLE>
<CAPTION>

               NAME                                STATE OF INCORPORATION
               ----                                ----------------------
      <S>                                          <C>
      Lone Star Steel Company                      Texas
      LSS Merging Corporation                      Delaware

</TABLE>

         SECOND:  That an Agreement and Plan of Merger ("Agreement of Merger")
between the parties to the merger has been approved, adopted, certified,
executed and acknowledged by each of the constituent corporations in
accordance with the requirements of subsection (c) of section 252 of the
General Corporation Law of the State of Delaware.

         THIRD:   The name of the surviving corporation of the merger is LSS
Merging Corporation, which shall herewith be changed to Lone Star Steel
Company, a Delaware corporation.

         FOURTH:  That the amendments or changes in the Certificate of
Incorporation of LSS Merging Corporation, a Delaware corporation, which is the
surviving corporation, that are to be effected by the merger are as follows:

         Article FIRST of the Certificate of Incorporation of LSS Merging
Corporation shall be amended to read as follows:

                 "The name of this Corporation is Lone Star Steel Company."

         FIFTH:   That the executed Agreement of Merger is on file at the
principal place of business of the surviving corporation. The address of said
principal place of business is 2200 West Mockingbird Lane, Dallas, Texas 75235.

<PAGE>

         SIXTH:   That a copy of the Agreement of Merger will be furnished on
request and without cost to any stockholder of any constituent corporation.

         SEVENTH: The authorized capital stock of each foreign corporation
which is a party to the merger is as follows:

<TABLE>
<CAPTION>

                                                                      NUMBER OF        PAR VALUE
                                                                      ---------        ---------
                  CORPORATION                     CLASS                 SHARES         PER SHARE
                  -----------                     -----                 ------         ---------
             <S>                                 <C>                  <C>              <C>
             Lone Star Steel Company             Common               40,000,000       $1.00
                                                 Preferred            10,000,000       none

</TABLE>

         Dated:  May ___, 1986.

                                         LSS MERGING CORPORATION

                                         By:  /s/ James E. Chenault, Jr.
                                            -----------------------------------
                                              James E. Chenault, Jr., President

ATTEST:

By:  /s/ Ellis A. Brock
   -------------------------------------
     Ellis A. Brock, Secretary

<PAGE>

                            CERTIFICATE OF AMENDMENT

                     TO THE CERTIFICATE OF INCORPORATION OF

                             LONE STAR STEEL COMPANY

         Pursuant to the General Corporation Law of the State of Delaware, LONE
STAR STEEL COMPANY (the "Corporation"), a corporation organized and existing
under and by virtue of the General Corporation Law of Delaware, DOES HEREBY
CERTIFY THAT:

         FIRST: The Board of Directors of the Corporation, in accordance with
Section 242 of the General Corporation Law of the State of Delaware, on
September 30, 1986 adopted the following resolutions:

                           RESOLVED, that this Board of Directors deems it
                  advisable that Article Ninth of the Certificate of
                  Incorporation of the Corporation be amended (i) to define
                  the scope of personal liability of the Corporation's
                  Directors to the Corporation and to (ii) to define and
                  clarify the rights of certain individuals, including the
                  Corporation's directors and officers, to indemnification by
                  the Corporation in the event of personal liability or
                  expenses incurred by them as a result of certain litigation
                  against them by amending, changing and altering Article Ninth
                  to read as follows:

                           NINTH:

                  A.       LIMITATION OF CERTAIN LIABILITY OF DIRECTORS.

                  The personal liability of a director of the Corporation to
         the Corporation or its stockholders for monetary damages for breach of
         fiduciary duty as a director, shall be limited to a total of $25,000
         for all liabilities for all claims, except for liability (i) for any
         breach of the director's duty of loyalty to the Corporation or its
         stockholders, (ii) for acts or omissions not in good faith or which
         involve intentional misconduct or a knowing violation of law, (iii)
         under Section 174 of the Delaware General Corporation Law, or (iv) for
         any transaction from which the director derived an improper personal
         benefit. If the Delaware General Corporation Law is amended after
         approval by the stockholders of this Article NINTH to authorize
         corporate action further eliminating or limiting the personal liability
         of directors, then, other than the personal liability limitation of
         $25,000 for all claims, the liability of a director of the Corporation
         shall be eliminated or limited to the fullest extent permitted by the
         Delaware General Corporation Law, as so amended.

                  Any repeal or modification of the foregoing paragraph by the
         stockholders of the Corporation shall not adversely affect any right or
         protection of a director of the Corporation existing at the time of
         such repeal or modification.

                  B.       INDEMNIFICATION AND INSURANCE.

<PAGE>

                                   -Page 2-

                  1.       RIGHT TO INDEMNIFICATION.  Each person who
     was or is made a party or is threatened to be made a party to or is
     involved in any action, suit or proceeding, whether civil, criminal,
     administrative or investigative (hereinafter a "proceeding"), by reason
     of the fact that he or she, or a person of whom he or she is the legal
     representative, is or was a director or officer of the Corporation or is
     or was serving at the request of the Corporation as a director, officer,
     employee or agent of another corporation or of a partnership, joint
     venture, trust or other enterprise, including service with respect to
     employee benefit plans, whether the basis of such proceeding is alleged
     action in an official capacity as a director, officer, employee or agent
     or in any other capacity while serving as a director, officer, employee
     or agent, shall be indemnified and held harmless by the Corporation to
     the fullest extent authorized by the Delaware General Corporation Law,
     as the same exists or may hereafter be amended (but, in the case of any
     such amendment, only to the extent that such amendment permits the
     Corporation to provide broader indemnification rights than said law
     permitted the Corporation to provide prior to such amendment), against
     all expense, liability and loss (including attorneys' fees, judgments,
     fines, ERISA excise taxes or penalties and amounts paid or to be paid in
     settlement) reasonably incurred or suffered by such person in connection
     therewith and such indemnification shall continue as to a person who has
     ceased to be a director, officer, employee or agent and shall inure to
     the benefit of his or her heirs, executors and administrators; PROVIDED,
     HOWEVER, that, except as provided in paragraph (2) hereof, the
     Corporation shall indemnify any such person seeking indemnification in
     connection with a proceeding (or part thereof) initiated by such person
     only if such proceeding (or part thereof) was authorized by the Board of
     Directors of the Corporation. The right to indemnification conferred in
     this Section B shall be a contract right and shall include the right to
     be paid by the Corporation the expenses incurred in defending any such
     proceeding in advance of its final disposition; PROVIDED, HOWEVER, that,
     if the Delaware General Corporation Law requires, the payment of such
     expenses incurred by a director or officer in his or her capacity as a
     director or officer (and not in any other capacity in which service was
     or is rendered by such person while a director or officer, including,
     without limitation, service to an employee benefit plan) in advance of
     the final disposition of a proceeding, shall be made only upon delivery
     to the Corporation of an undertaking, by or on behalf of such director
     or officer, to repay all amounts so advanced if it shall ultimately be
     determined that such director or officer is not entitled to be
     indemnified under this Section B or otherwise. The Corporation may, by
     action of its Board of Directors, provide indemnification to employees
     and agents of the Corporation with the same scope and effect as the
     foregoing indemnification of directors and officers.

                  2.       RIGHT OF CLAIMANT TO BRING SUIT.  If a claim under
     paragraph 1 of this Section B is not paid in full by the Corporation
     within thirty days after a written claim has been received by the
     Corporation, the claimant may at any time thereafter bring suit against
     the Corporation to recover the unpaid amount of the claim and, if
     successful in whole or in part, the claimant shall be entitled to be
     paid also the expense of prosecuting such claim. It shall be a defense
     to any such action (other than an action brought to enforce a claim for
     expenses incurred in defending any proceeding in advance of its final
     disposition where the required undertaking, if any is required, has been
     tendered to the Corporation) that the claimant has not met the standards
     of conduct which make it permissible under the Delaware General
     Corporation Law for the Corporation to indemnify the claimant for the
     amount claimed, but the burden of proving such defense shall be on the
     Corporation. Neither the

<PAGE>

                                   -Page 3-

     failure of the Corporation (including its Board of Directors, independent
     legal counsel, or its stockholders) to have made a determination prior to
     the commencement of such action that indemnification of the claimant is
     proper in the circumstances because he or she has met the applicable
     standard of conduct set forth in the Delaware General Corporation Law,
     nor an actual determination by the Corporation (including its Board of
     Directors, independent legal counsel, or its stockholders) that the
     claimant has not met such applicable standard of conduct, shall be a
     defense to the action or create a presumption that the claimant has not
     met the applicable standard of conduct.

                  3.   NON-EXCLUSIVITY OF RIGHTS. The right to indemnification
     and the payment of expenses incurred in defending a proceeding in advance
     of its final disposition conferred in this Section B shall not be
     exclusive of any other right which any person may have or hereafter
     acquire under any statute, provision of the Certificate of Incorporation,
     by-law, agreement, vote of stockholders or disinterested directors or
     otherwise.

                  4.   INSURANCE. The Corporation may maintain insurance, at
     its expense, to protect itself and any director, officer, employee or
     agent of the Corporation or another corporation, partnership, joint
     venture, trust or other enterprise against any such expense, liability or
     loss, whether or not the Corporation would have the power to indemnify
     such person against such expense, liability or loss under the Delaware
     General Corporation Law.

                  FURTHER RESOLVED, that the amendment to the Certificate of
         Incorporation of the Corporation be submitted to the sole stockholder
         of the Corporation for approval.

         SECOND:  The sole stockholder of the Corporation, by written
consent, on September 30, 1986 approved and adopted the amendment to the
Certificate of Incorporation of the Corporation.

         THIRD: Such amendment to the Certificate of Incorporation of the
Corporation was duly adopted in accordance with the applicable provisions of
Section 242 of the General Corporation Law of the State of Delaware.

         IN WITNESS WHEREOF, LONE STAR STEEL COMPANY has caused this Certificate
to be signed by Wm. Howard Beasley III, Chairman of the Board and Chief
Executive officer, and attested to by its Assistant Secretary this 30th day of
September, 1986.

                                       LONE STAR STEEL COMPANY

                                       By:  /s/ Wm. Howard Beasley III
                                          --------------------------------------
                                                Wm. Howard Beasley III
                                                Chairman of the Board and
                                                Chief Executive Officer

<PAGE>

                                   -Page 4-

ATTEST:

By:  /s/ Ellis A. Brock
   ------------------------------------
         Ellis A. Brock
         Assistant Secretary

<PAGE>

                            CERTIFICATE OF AMENDMENT
                                     TO THE
                          CERTIFICATE OF INCORPORATION
                                       OF
                             LONE STAR STEEL COMPANY

         Pursuant to provisions of Section 242 of the Delaware General
Corporation Act, the undersigned corporation adopts the following Certificate of
Amendment to its Certificate of Incorporation:

                                   ARTICLE ONE

         The name of the corporation is LONE STAR STEEL COMPANY.

                                   ARTICLE TWO

         Article First of the Certificate of Incorporation, as amended, is
hereby further amended to read as follows:

         "The name of the corporation is

                       EAST TEXAS STEEL FACILITIES, INC."

                                  ARTICLE THREE

         The holder of all of the shares outstanding and entitled to vote on
said amendment has signed a consent in writing adopting said amendment.

         The number of shares of the corporation outstanding at the time of such
adoption was 1,000, and the number of shares entitled to vote thereon was 1,000.

<PAGE>

         DATED:  January 31, 1989

                                     LONE STAR STEEL COMPANY

                                     By: /s/ Wm. Howard Beasley III
                                         --------------------------------------
                                          Wm. Howard Beasley III
                                          Chairman of the Board,
                                          Chief Executive Officer and President

ATTEST:

By:  /s/ Ellis A. Brock
   ------------------------------------
         Ellis A. Brock
         Secretary

                                       2
<PAGE>

THE STATE OF TEXAS         )
COUNTY OF DALLAS           )

         I, G. Janelle Howard, a Notary Public, do hereby certify that on this
the 31st day of January, 1989, personally appeared before me Wm. Howard Beasley
III and Ellis A. Brock, who being by me first duly sworn, declared that they are
the Chairman of the Board, Chief Executive Officer and President and Secretary,
respectively, of EAST TEXAS STEEL FACILITIES, INC., that they signed the
foregoing document as Chairman of the Board, Chief Executive Officer and
President and as Secretary of the Corporation, and that the statements therein
contained are true.

                                                 ------------------------------
                                                 Notary Public, State of Texas

My commission Expires: June 11, 1990

<PAGE>

                       CERTIFICATE OF OWNERSHIP AND MERGER

                                     MERGING

                            PROJECT RESOURCES COMPANY

                                      INTO

                        EAST TEXAS STEEL FACILITIES, INC.

         EAST TEXAS STEEL FACILITIES, INC., a Delaware corporation (the
"Corporation"), does hereby certify:

         FIRST:   That the Corporation is incorporated pursuant to the
Delaware General Corporation Law.

         SECOND:  That the Corporation owns all of the outstanding shares of
each class of capital stock of Project Resources Company, a Delaware
corporation.

         THIRD:   That the Corporation, by the resolutions of its Board of
Directors annexed hereto as Exhibit A, duly adopted as of February 23, 1989,
determined to merge Project Resources Company with and into the Corporation on
the terms and conditions set forth in such resolutions.

         IN WITNESS WHEREOF, the Corporation has caused this Certificate to be
signed by William J. Magnuson, its Group Vice President, and Ellis A. Brock, its
Secretary, on this the 23rd day of February, 1989.

                                       EAST TEXAS STEEL FACILITIES, INC.

                                       By: /s/ William J. Magnuson
                                          -------------------------------------
                                             William J. Magnuson,
                                             Group Vice President

ATTEST:

By: /s/ Ellis A. Brock
   -------------------------------------
      Ellis A. Brock
      Secretary

<PAGE>

THE STATE OF TEXAS         )
COUNTY OF DALLAS           )

         The foregoing instrument was acknowledged before me this 23rd day of
February, 1989 by William J. Magnuson and Ellis A. Brock, Group Vice President
and Secretary, respectively, of EAST TEXAS STEEL FACILITIES, INC., a Delaware
corporation, on behalf of such Corporation.

                                     /s/ G. Janelle Howard
                                     -------------------------------------------
                                     G. Janelle Howard
                                     Notary Public in and for the State of Texas

My commission Expires: June 11, 1990

<PAGE>

                                                                      EXHIBIT A

         WHEREAS, the Corporation is the owner and holder of all of the issued
and outstanding shares of each class of the capital stock of Project Resources
Company, a Delaware corporation (the "Subsidiary"); and

         WHEREAS, the Board of Directors of the Corporation in its best business
judgment deems it advisable and in the best interests of the Corporation and its
sole stockholder that the Subsidiary be merged with and into the Corporation in
accordance with Section 253 of the General Corporation Law of the State of
Delaware;

         NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the
Corporation hereby authorizes the Corporation to merge the Subsidiary with and
into the Corporation in accordance with and pursuant to Section 253 of the
General Corporation Law of the State of Delaware, and to assume all of the
Subsidiary's liabilities and obligations.

         RESOLVED FURTHER, that the Board of Directors of the Corporation hereby
authorizes the President or a Vice President and the Secretary or an Assistant
Secretary of the Corporation to execute and acknowledge a Certificate of
Ownership and Merger setting forth a copy of these resolutions and the date of
the adoption hereof, and to file, or cause to be filed, such Certificate of
Ownership and Merger in the office of the Secretary of State of the State of
Delaware and a certified copy thereof in the Office of the Recorder of Deeds of
New Castle County.

         RESOLVED FURTHER, that upon the filing of the Certificate of Ownership
and Merger in the manner provided above the separate existence of the Subsidiary
will cease, and the Corporation, as the surviving corporation, will succeed to
all the rights, privileges, immunities, franchises and property of the
Subsidiary, and assume all the liabilities, duties and obligations of the
Subsidiary.

         RESOLVED FURTHER, that the Certificate of Incorporation, as amended,
and the By-laws of the Corporation shall remain unchanged by the merger of the
Subsidiary into the Corporation.

         RESOLVED FURTHER, that the proper officers of the Corporation are
hereby authorized and directed to take or cause to be taken all such further
action and to sign, execute, acknowledge, certify, deliver, accept, record and
file all such further instruments in their name and on behalf of the Corporation
as in their judgment shall be necessary, desirable or advisable in order to
carry out the intent, and to accomplish the purposes, of the foregoing
resolutions.

<PAGE>

                            CERTIFICATE OF AMENDMENT
                                     TO THE
                          CERTIFICATE OF INCORPORATION
                                       OF
                        EAST TEXAS STEEL FACILITIES, INC.

         Pursuant to provisions of Section 242 of the Delaware General
Corporation Act, the undersigned corporation adopts the following Certificate of
Amendment to its Certificate of Incorporation:

                                   ARTICLE ONE

         The name of the corporation is LONE STAR STEEL COMPANY.

                                   ARTICLE TWO

         Article First of the Certificate of Incorporation, as amended, is
hereby further amended to read as follows:

         "The name of the corporation is

                            LONE STAR STEEL COMPANY."

                                  ARTICLE THREE

         The holder of all of the shares outstanding and entitled to vote on
said amendment has signed a consent in writing adopting said amendment.

         The number of shares of the corporation outstanding at the time of such
adoption was 1,000, and the number of shares entitled to vote thereon was 1,000.

<PAGE>

         DATED:  August 10, 1989

                                       EAST TEXAS STEEL FACILITIES, INC.

                                       By: /s/ Lawrence W. Hicks
                                          ------------------------------------
                                            Lawrence W. Hicks
                                            President and
                                            Chief Executive Officer

ATTEST:

By: /s/ Ellis A. Brock
   -------------------------------------
     Ellis A. Brock
     Secretary

                                       2
<PAGE>

THE STATE OF TEXAS         )
COUNTY OF DALLAS           )

         I, Nancy M. Scott, a Notary Public, do hereby certify that on this the
10th day of August, 1989, personally appeared before me Lawrence W. Hicks and
Ellis A. Brock, who being by me first duly sworn, declared that they are the
President and Chief Executive Officer and Secretary, respectively, of EAST TEXAS
STEEL FACILITIES, INC., that they signed the foregoing document as President and
Chief Executive Officer and as Secretary of the Corporation, and that statements
therein contained are true.

                                             /s/ Nancy M. Scott
                                             ----------------------------------
                                             Notary Public, State of Texas

My commission Expires:  May 31, 1992

<PAGE>

                       CERTIFICATE OF OWNERSHIP AND MERGER

                                     MERGING

                        TEXAS & NORTHERN INDUSTRIES, INC.
                           LSSCO TRADING COMPANY, INC.
                                   LSSCO, INC.
                                       AND
                            TUBULAR INNOVATIONS, INC.
                                  WITH AND INTO
                             LONE STAR STEEL COMPANY

         LONE STAR STEEL COMPANY, a Delaware corporation (the "Company"), does
hereby certify:

     FIRST:        That the Company is incorporated pursuant to the General
                   Corporation Law of the State of Delaware.

     SECOND:       That the Corporation owns all of the outstanding shares of
                   each class of capital stock of the following corporations:
                   TEXAS & NORTHERN INDUSTRIES, INC. and LSSCO TRADING COMPANY,
                   INC., each of which is a corporation organized and existing
                   under the statutes of the State of Texas; LSSCO, INC., a
                   corporation organized and existing under the statutes of the
                   State of Illinois; and TUBULAR INNOVATIONS, INC., a
                   corporation organized and existing under the statutes of the
                   State of Delaware (hereinafter the "SUBSIDIARIES").

     THIRD:        That the Company, by resolutions of its Board of Directors
                   duly adopted by unanimous written consent as of April 10,
                   19__ (a copy of which is annexed hereto as Exhibit A),
                   determine to merge the SUBSIDIARIES with and into the Company
                   on terms and conditions set forth in said resolutions.

         IN WITNESS WHEREOF, the Company has caused this Certificate of
Ownership and Merger to be executed by its President and attested by its
Secretary on the 10th day of April 1991.

<PAGE>

                                             LONE STAR STEEL COMPANY

                                             By: /s/ Rhys J. Best
                                                -------------------------------
                                                  Rhys J. Best, President

ATTEST:

By: /s/ James T. Dougherty
   -------------------------------------
     James T. Dougherty,
     Secretary

<PAGE>

                                 PLAN OF MERGER
                                     MERGING
                            TUBULAR INNOVATIONS, INC.
                                   LSSCO, INC.
                           LSSCO TRADING COMPANY, INC.
                        TEXAS & NORTHERN INDUSTRIES, INC.
                                  WITH AND INTO
                             LONE STAR STEEL COMPANY

FIRST:            LONE STAR STEEL COMPANY, a corporation organized and existing
                  under the laws of the state of Delaware, (the "Company");
                  TUBULAR INNOVATIONS, INC., a corporation organized and
                  existing under the laws of the State of Delaware; LSSCO,
                  INC., a corporation organized and existing under the laws of
                  the State of Illinois; and LSSCO TRADING COMPANY, INC., and
                  TEXAS & NORTHERN INDUSTRIES, INC., corporations organized and
                  existing under the laws of the State of Texas (the
                  "Subsidiaries") are parties to this Plan of Merger (the
                  "Plan").

SECOND:           The effective date of the merger (the "Effective Date") shall
                  be the earliest date permitted under the applicable statutes
                  of the states of domicile of the respective corporations
                  which are parties to the Plan and shall be the date upon
                  which all actions required to be taken by such laws to effect
                  the merger have been completed.

THIRD:            On the Effective Date each of the Subsidiaries shall be
                  merged with and into the Company, and all of the issued and
                  outstanding shares of the Subsidiaries' stock, which is
                  presently wholly owned by the Company, shall be canceled.

FOURTH:           On the Effective Date the Company shall assume all
                  liabilities, duties and obligations of each of the
                  Subsidiaries and shall succeed to all the rights, privileges,
                  immunities, franchises, real estate and other property of each
                  of the Subsidiaries.

FIFTH:            The Company shall be the sole surviving corporation of the
                  merger, retaining the name, LONE STAR STEEL COMPANY; no new
                  corporation or other entity shall be created by the terms of
                  the Plan.

SIXTH:            On and after the Effective Date and until thereafter
                  amended in accordance with the Delaware General
                  Corporation Law, the Certificate of LONE STAR STEEL
                  COMPANY as in effect immediately prior to the Effective
                  Date shall be and continue to be the Certificate of
                  Incorporation of the surviving corporation. The By-Laws of
                  LONE STAR STEEL COMPANY, as existing immediately prior to
                  the Effective Date, will continue in full force and effect
                  as the By-Laws of the surviving corporation, until such
                  By-Laws are thereafter modified, amended or repealed in
                  accordance with the laws of the State of Delaware and the
                  applicable provisions of such By-Laws.

                                  EXHIBIT "A"

<PAGE>

         FURTHER RESOLVED, that the Certificate of Incorporation and the Bylaws
of the Company shall remain unchanged by the merger of the Subsidiaries into the
Company.

         FURTHER RESOLVED, that the proper officers of the Company are hereby
authorized and directed to take or cause to be taken all such further action and
to sign, execute, acknowledge, certify, deliver, accept, record and file all
such further instruments, in the name and on behalf of the Company, as in their
judgment shall be necessary, desirable or advisable in order to carry out the
intent and to accomplish the purposes of the foregoing resolutions.

         Dated as of April 10, 1991.

/s/ John P. Harbin            /s/ Rhys J. Best            /s/ David E. Blackwell
--------------------------    ------------------------    ----------------------
John P. Harbin                Rhys J. Best                David E. Blackwell

/s/ James E. Chenault, Jr.    /s/ R.W. Arp                /s/ W. Byron Dunn
--------------------------    ------------------------    ----------------------
James E. Chenault, Jr.        R.W. Arp                    W. Byron Dunn

                              /s/ William J. Magnuson
                              ------------------------
                              William J. Magnuson

<PAGE>

                            CERTIFICATE OF AMENDMENT

                     TO THE CERTIFICATE OF INCORPORATION OF

                             LONE STAR STEEL COMPANY

         In accordance with provisions of Section 303 of the Delaware General
Corporation Act, the undersigned, LONE STAR STEEL COMPANY, a corporation
organized and existing under the statutes of the State of Delaware (the
"Corporation"), adopts the following Certificate of Amendment to its
Certificate of Incorporation and hereby certifies that provision for this
Certificate of Amendment is contained in the Amended Order Confirming Seventh
Amended Plan of Reorganization Per Oral Motion of Debtor Pursuant to Federal
Rule 59(e) executed by the Honorable Harold C. Abramson, United States
Bankruptcy Judge, pursuant to Chapter 11 of the United States Bankruptcy
Code, and entered April 12, 1991 in the United States Bankruptcy Court,
Northern District of Texas, Dallas, Texas.

                                  ARTICLE ONE

         Article Fourth of the Corporation's Certificate of Incorporation is
hereby amended to read in its entirety as follows:

                  "The total number of shares of all classes of capital stock
                  which the Corporation shall have the authority to issue is
                  30,000,000 shares of Common Stock, $0.10 par value. All
                  classes of capital stock issued shall be voting stock.

         Dated:  April 16, 1991

                                       LONE STAR STEEL COMPANY

                                       By:  /s/ Rhys J. Best
                                          --------------------------------------
                                                Rhys J. Best,
                                                President

ATTEST:

By:  /s/ James T. Dougherty
    -----------------------------------
         James T. Dougherty, Seceretary

<PAGE>

STATE OF TEXAS             )
                           )
COUNTY OF DALLAS           )

         Before me, the undersigned, a Notary Public, on this day personally
appeared Rhys J. Best and James T. Dougherty known to me to be the persons
and officers whose names are subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said LONE STAR STEEL
COMPANY, a Delaware corporation, and that each of them has executed the same
as the act of such corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.

         Given under my hand and seal of office this 16th day of April, 1991.

                                       -----------------------------------------
                                       Notary Public, State of Texas

                                       -----------------------------------------
                                       Printed Name of Notary Public

My commission expires the 31st day of August, 1991.

<PAGE>

                            CERTIFICATE OF AMENDMENT
                     TO THE CERTIFICATE OF INCORPORATION OF
                             LONE STAR STEEL COMPANY

         Pursuant to provisions of Section 242 of the Delaware General
Corporation Act, the undersigned, LONE STAR STEEL COMPANY, a corporation
organized and existing under the statutes of the State of Delaware (the
"Corporation"), adopts the following Certificate of Amendment to its
Certificate of Incorporation:

                                   ARTICLE ONE

         Article Fourth of the Certificate of Incorporation is hereby amended
to read in its entirety as follows:

                  "The total number of shares of all classes of capital stock
                  which the Corporation shall have the authority to issue is
                  3,000 shares of Common Stock, $1.00 par value. All classes of
                  capital stock issued shall be voting stock."

                                   ARTICLE TWO

         The holders of all of the outstanding shares of stock entitled to
vote on said amendment have been given the opportunity to do so, and a
majority of the outstanding stock entitled to vote thereon has voted to adopt
said amendment.

         The number of shares outstanding at the time of such adoption was
10,000,000; the number of shares entitled to vote thereon was 10,000,000.

         Dated:  January 10, 1992

                                       LONE STAR STEEL COMPANY

                                       By:  /s/ Rhys J. Best
                                          --------------------------------------
                                                Rhys J. Best,
                                                President

ATTEST:

By:  /s/ James T. Dougherty
   ------------------------------------
         James T. Dougherty, Secretary

<PAGE>

STATE OF TEXAS             )
                           )
COUNTY OF DALLAS           )

         Before me, the undersigned, a Notary Public, on this day personally
appeared Rhys J. Best and James T. Dougherty known to me to be the persons
and officers whose names are subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said LONE STAR STEEL
COMPANY, a Delaware corporation, and that each of them has executed the same
as the act of such corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.

         Given under my hand and seal of office this 10th day of January,
1992.

                                       -----------------------------------------
                                       Notary Public, State of Texas

                                       -----------------------------------------
                                       Printed Name of Notary Public

My commission expires the 31st day of August, 1992.

<PAGE>

                            CERTIFICATE OF AMENDMENT
                                       TO
                          CERTIFICATE OF INCORPORATION
                                       OF
                             LONE STAR STEEL COMPANY

         Pursuant to the provisions of Section 242 of the Delaware General
Corporation Law, the undersigned, LONE STAR STEEL COMPANY, a corporation
organized and existing under the statutes of the State of Delaware (the
"Corporation"), adopts the following Certificate of Amendment to its Certificate
of Incorporation:

                                   ARTICLE ONE

         Article Fourth of the Certificate of Incorporation is hereby amended to
read in its entirety as follows:

         FOURTH: The aggregate number of shares of capital stock which the
Corporation shall have authority to issue is 20,000, consisting of 15,000 shares
of common stock, with a par value of $1.00 per share ("Common Stock"), and five
thousand (5,000) shares of preferred stock with a par value of $1.00 per share
("Preferred Stock").

         A.       Common Stock.

         At any meeting of stockholders of the Corporation each holder of Common
Stock shall be entitled to one vote for each share of Common Stock held by such
holder.

         B.       Preferred Stock.

         1.       Shares of Preferred Stock may be issued from time to time
in one or more series, the shares of each series to have such designations,
powers, preferences, rights, qualifications, limitations, and restrictions as
are stated and expressed herein and in the resolution or resolutions providing
for the issuance of such series adopted by the Board of Directors as hereinafter
provided. Unless otherwise provided by any resolution or resolutions adopted by
the Board of Directors providing for the issuance of Preferred Stock, Preferred
Stock shall be nonparticipating and dividends on Preferred Stock shall be
cumulative from date of issue and shall not bear interest.

         2.       Authority is hereby expressly granted to the Board of
Directors to authorize the issuance of Preferred Stock from time to time in
one or more series, and with respect to each series of Preferred Stock, to fix
and determine by the resolution or resolutions from time to time adopted
providing for the issuance thereof, the number of shares to constitute the
series, the designation thereof and any powers, preferences, rights,
qualifications, limitations and restrictions not prohibited by law, including,
but not limited to, one or more of the following rights and preferences: (A)
the rate of dividend, (B) the price at and the terms and conditions on which
shares may be redeemed, (C) the amount payable upon shares in the event of
involuntary liquidation, (D) the amount payable upon shares in the event of
voluntary liquidation, (E) sinking fund provisions (if any) for the redemption
or purchase of shares, (F) the terms and conditions on

<PAGE>

which shares may be converted if the shares of any series are issued with the
privilege of conversion, and (G) voting rights (including the number of votes
per share, the matters on which the shares can vote and the contingencies, if
any, which make the voting rights effective). The shares of each series of
Preferred Stock may vary from the shares of any other series thereof in any
or all of the foregoing respects. The Board of Directors may increase the
number of shares designated for any existing series by adding to such series
authorized and unissued shares not designated for any other series. The Board
of Directors may decrease the number of shares designated for any existing
series by subtracting from such series unissued shares designated for such
series and the shares so subtracted shall become authorized and unissued
shares of Preferred Stock.

         3.       All or any part of any series of Preferred Stock may be
redeemed at any time or times at the option of the Corporation by resolution
of the Board of Directors, in accordance with the terms and conditions fixed
by the Board of Directors in the resolution or resolutions providing for the
issuance of such series. The Corporation may redeem shares of any one or more
series of Preferred Stock without redeeming shares of any other series.

                                   ARTICLE TWO

         The holders of all of the outstanding shares of stock entitled to give
written consent to said amendment without a stockholders meeting have been given
the opportunity to do so, and a majority of the outstanding stock entitled to
consent thereto has given written consent to the adoption of said amendment, and
written notice that such consent, which was not unanimous, has been given to the
stockholder that did not consent in writing.

         The number of shares outstanding at the time of such adoption was one
thousand (1,000); the number of shares entitled to vote or consent thereon was
one thousand (1,000).

         November 9, 1994.

                                              LONE STAR STEEL COMPANY

                                              By: /s/ Rhys J. Best
                                                 -----------------------------
                                                   Rhys J. Best, President

ATTEST:

By: /s/ James T. Dougherty
   -----------------------------
      James T. Dougherty,
      Secretary

<PAGE>

CERTIFICATE OF THE POWERS, DESIGNATIONS, PREFERENCES, AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS, AND THE QUALIFICATIONS,
LIMITATIONS OR RESTRICTIONS THEREOF, WHICH HAVE NOT BEEN SET FORTH IN THE
CERTIFICATE OF INCORPORATION OR IN ANY AMENDMENT THERETO, OF THE

                            PREFERRED STOCK, SERIES A
                           (PAR VALUE $1.00 PER SHARE)
                             LONE STAR STEEL COMPANY

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

                         PURSUANT TO SECTION 151 OF THE

                GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

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

          The Undersigned DOES HEREBY CERTIFY that the following resolution was
duly adopted on October 7, 1994, by the Board of Directors of Lone Star Steel
Company (the "Board of Directors"), a Delaware corporation (hereinafter called
the "Corporation"), to become effective upon the next business day following the
date the amendment to its Certificate of Incorporation as set forth in the
attached form of Certificate of Amendment (attachment 1 hereto) becomes
effective, pursuant to authority conferred upon the Board of Directors by the
provisions of the Certificate of Incorporation, as amended (the "Certificate of
Incorporation"), of the Corporation:

          RESOLVED, that pursuant to the authority vested in the Board of
Directors by Article Fourth of the Certificate of Incorporation, a series of
preferred stock of the Corporation be, and hereby is, created out of the
authorized but unissued shares of the preferred stock of the Corporation, such
series to be designated Preferred Stock, Series A (the "preferred stock"), to
consist of three hundred seventy-five (375) shares, par value $1.00 per share,
of which the preferences and relative and other rights, and the qualifications,
limitations or restrictions thereof, shall be (in addition to those set forth in
the Certificate of Incorporation) as follows:

1.        AMOUNT OF ISSUANCE.  To the extent the common stockholders of the
Corporation identified below, who have expressed their willingness to assist
in the financing of the acquisition and as necessary the installation of
certain equipment and production facilities for the Corporation (the "First
Capital Project"), advance funds towards that project, those common
stockholder, to wit: Lone Star Technologies, Inc. ("LST"), and TCW Special
Credits Fund, TCW Special Credits Fund II, TCW Special Credits Fund IIb,
Weyerhaeuser Company Master Pension Trust, and Inland Steel Industries
Pension Trust (the "TCW Holders"), will receive, each time that funds are
advanced to the Corporation for the First Capital Project, and the
Corporation will issue, each such time, in total to LST and the TCW Holders
on the date each advance is made, that number of shares (and/or fractions of
shares) of preferred stock as equal the number derived, when the total
advance is divided by One Hundred Thousand and No/100 Dollars ($100,000.00),

                                       1
<PAGE>

such that, for each One Hundred Thousand and No/100 Dollars ($100,000.00)
advanced, one (1) whole share will be issued. OF the total shares of the
preferred stock to be issued each time shares are to be issued as provided
above, 90.84% of the total shares to be issued will be issued to LST and
9.16% of the total shares to be issued will be issued to the TCW Holders. The
total shares issuable to the TCW Holders, each time shares are to be issued
to them, shall be issued individually among them as the TCW Holders shall
direct. The "Dollar Value" of the shares of preferred stock shall be One
Hundred Thousand and No/100 Dollars ($100,000.00) per share, and as
proportionately adjusted downward shall be the "Dollar Value" of fractional
shares. Each share of preferred stock shall have a par value of One and
No/100 Dollar ($1.00) per whole share, and the entire series of preferred
stock shall consist of three hundred seventy-five (375) authorized shares.
Fractional shares may be issued. The foregoing provisions of this paragraph
will inure to the benefit of the respective successors to LST and each of the
TCW Holders so that such successors upon advances of funds being made for the
First Capital Project will be entitled to receive the preferred stock which
the party they succeeded otherwise would have been entitled to receive under
the foregoing provisions. Unless the context indicates otherwise, herein the
references to "preferred stock" refer to this Preferred Stock, Series A, and
not to any other preferred stock.

2.        ISSUANCE  DATE. The preferred stock will be issued in the number of
shares (or fractions of shares) to LST and the TCW Holders as provided above,
as and when each advance is made by any of them to fund the First Capital
Project. While the shares of the preferred stock will be issued by the
Corporation when the advances are made, certificates for the shares of such
preferred stock will be delivered to the shareholders entitled thereto for
the preceding calendar quarter based upon the advances to fund the First
Capital Project made during that quarter each January 1, April 1, July 1, and
October 1 after September 30, 1994. In addition, shares of the preferred
stock may be issued in payment of dividends as provided under paragraph 3
below, and the shares of preferred stock to be issued as dividends will be
issued, in each case, when the dividend that the stock is to pay, is, pursuant
to action of the Board of Directors, to be paid, and the share certificates
for such stock will be furnished at the same time by the Corporation to the
holders entitled thereto.

3.        DIVIDENDS.

          (a)    The holders of preferred stock will be entitled to a cumulative
                 dividend at the rate of six percent (6%) per annum on the
                 Dollar Value of the shares of preferred stock issued and
                 outstanding accruing from the date of issuance. No dividends of
                 any kind or other distributions are permitted to be paid or
                 made on Corporation's common stock at any time while any
                 preferred stock is outstanding.

          (b)    As to any share of preferred stock, commencing on the January
                 1, April 1, July 1, or October 1 first to occur after such
                 stock is issued, and for each succeeding quarterly period
                 ending immediately prior to each succeeding January 1, April 1,
                 July 1, and October 1, the holder of such stock shall be
                 entitled to receive, when and as declared as hereinafter
                 provided, out of funds legally available for that purpose,
                 cash dividends of one and one-half percent (1.5%) of the Dollar
                 Value of each share or fractional share held (prorated for the
                 first such dividend period at the rate of one and one-half
                 percent (1.5%) per quarter accruing from the actual

                                       2
<PAGE>

                 issue date to the end of that dividend period), and no more.
                 All dividends shall be payable in arrears, when and as declared
                 by the Board of Directors. Each such dividend shall be paid to
                 the holders of record of the preferred stock as their names
                 appear on the share register of the Corporation on the date set
                 as the record date for such dividend. Dividends on account of
                 arrears for any past dividend periods may be declared and paid
                 at any time without reference to any dividend payment date, to
                 holders of record on a date, not exceeding thirty (30) calendar
                 days preceding the payment date thereof, as may be fixed by the
                 Board of Directors.

          (c)    To the extent, on any dividend payment date, the holders of the
                 preferred stock shall not have received the full dividends for
                 all periods ended up to that date provided for in the other
                 provisions of this paragraph 3, then such dividends shall
                 cumulate, whether or not declared and irrespective of whether
                 such dividends could have been paid for such periods under
                 applicable law. It is understood that no dividends may be paid
                 in respect of the preferred stock prior to January 1, 1995
                 (although dividends will accrue on the preferred stock
                 outstanding prior to that date).

          (d)    If at any time the Corporation pays less than the total amount
                 of dividends then accrued and payable with respect to the
                 preferred stock, such payment shall be distributed ratably
                 among the holders of the preferred stock. Any payment made by
                 the Corporation on the unpaid cumulative dividends, if less
                 than the total amount of such dividends, shall be applied first
                 to those dividends that have been accrued for the longest time.

          (e)    The Corporation may at any time to the extent it so elects,
                 declare that dividends on the preferred stock which have
                 accrued will be payable in shares of preferred stock of a
                 Dollar Value equal to the dividends to be paid with such stock.
                 Any holder of preferred stock on which a cash dividend has been
                 declared and before it is paid may elect to similarly have the
                 Corporation pay any such dividend to the holder, to the extent
                 the holder elects, in preferred stock of the Dollar Value equal
                 to the dividend the holder has elected to be so paid.

4.        REDEMPTION.

          (a)    The Corporation may, provided the Board of Directors has
                 adopted a resolution approving such action, redeem the
                 preferred stock, in whole or in part, in cash, at any time by
                 paying the holder or holders of the shares to be redeemed (i)
                 the Dollar Value of such stock and (ii) all accrued and unpaid
                 dividends through the date of redemption on the shares to be
                 redeemed (including a pro rated dividend based on the number
                 of days elapsed from the last day of the most recent completed
                 quarterly dividend period through the redemption date). Each
                 holder of stock redeemed shall be entitled to payment of that
                 part of the total amount described above for all the redeemed
                 stock as is attributable to his redeemed stock. If the Board of
                 Directors has authorized a redemption which, when authorized,
                 was of less than all of the outstanding shares of the preferred
                 stock,

                                       3
<PAGE>

                 and because of subsequent conversions of the preferred stock
                 since then, amounts to more than the actual outstanding shares
                 on the Redemption Date or, if applicable, the Final Redemption
                 Date, the Board of Directors' authorization shall be deemed
                 amended to the number of such outstanding shares on the
                 Redemption Date of, if applicable, the Final Redemption date
                 which shall be the number authorized for redemption. Any
                 redemption of the preferred stock outstanding shall be
                 accomplished by redeeming from each holder of record all or
                 a fraction of each holder's shares, the numerator of which is
                 the total number of shares to be redeemed as authorized by the
                 Board of Directors or as deemed amended as provided above, and
                 the denominator of which is the total number of shares of
                 preferred stock outstanding on the Redemption Date or, if
                 applicable, the Final Redemption Date.

          (b)    On January 3, 2002, the Corporation shall be obligated to
                 redeem the preferred stock outstanding as a mandatory
                 redemption in whole for cash. The redemption price shall be
                 equal to the Dollar Value of the shares redeemed together
                 with any accrued but unpaid dividends on such shares to and
                 including the date of redemption, as specified in clauses (i)
                 and (ii) of paragraph 4(a). If less than all of the outstanding
                 shares of the preferred stock can be redeemed under applicable
                 law, such shares shall be redeemed pro rata or by lot as
                 determined by the Board of Directors in its sole discretion to
                 the maximum extent permitted by applicable law, and the
                 remaining shares shall be redeemed as and when they can be
                 redeemed under law.

          (c)    Notice of every proposed redemption of the preferred stock
                 shall be sent by or on behalf of the Corporation, by first
                 class mail, postage prepaid, to the holders of record of the
                 shares to be redeemed at their respective addresses as they
                 shall appear on the records of the Corporation, not less than
                 thirty (30) days nor more than sixty (60) days prior to the
                 date fixed for redemption (the "Redemption Date") (i) notifying
                 such holders of the election of the Corporation to redeem such
                 shares and of the Redemption Date and (ii) stating the place or
                 places at which the shares called for redemption shall, upon
                 presentation and surrender of the certificates evidencing such
                 shares, be redeemed, and the redemption price therefor, and
                 (iii) stating the name and address of any redemption agent
                 selected by the Corporation if other than the Corporation, and
                 the name and address of the Corporation's transfer agent for
                 the preferred stock. The Corporation may act as the transfer
                 agent for the preferred stock.

          (d)    The Corporation may act as the redemption agent to redeem the
                 preferred stock or appoint as its agent for such purpose a bank
                 or trust company in good standing, organized under the law of
                 the United States of America or any jurisdiction thereof, and
                 having capital, surplus and undivided profits aggregating at
                 least Twenty Million and No/100 Dollar ($20,000,000.00), and
                 may appoint any one or more additional such agents which shall
                 in each case be a bank or trust company in good standing
                 organized under the laws of the United States of America or of
                 any jurisdiction thereof, having an office or offices in the
                 City of Dallas, Texas, or such other place as shall have been
                 designated by the Corporation, and having

                                       4
<PAGE>

                 capital, surplus, and undivided profits aggregating at least
                 Twenty Million and No/100 Dollars ($20,000,000.00). The
                 Corporation or such bank or trust company is hereinafter
                 referred to as the "Redemption Agent." Following such
                 appointment and prior to any redemption, the Corporation shall
                 deliver to the Redemption Agent irrevocable written
                 instructions authorizing the Redemption Agent, on behalf and
                 at the expense of the Corporation, to cause such notice of
                 redemption to be duly mailed as herein provided as soon as
                 practicable after receipt of such irrevocable instructions and
                 in accordance with the above provisions. All funds necessary
                 for the redemption shall be deposited with the Redemption Agent
                 in trust at least one (1) business day prior to the Redemption
                 Date, for the pro rata benefit of the holders of the shares so
                 called for redemption, so as to be and continue to be available
                 therefor. Neither failure to mail any such notice to one (1) or
                 more such holders nor any defect in any notice shall affect the
                 sufficiency of the proceedings for redemption as to other
                 holders.

          (e)    If notice of redemption shall have been given as hereinbefore
                 provided, and the Corporation shall not default in the payment
                 of the redemption price, then each holder of shares called for
                 redemption shall be entitled to all preferences and relative
                 and other rights accorded by this resolution until and
                 including the day immediately prior to the Redemption Date. If
                 the Corporation shall default in making payment or delivery as
                 aforesaid on the Redemption Date, then each holder of the
                 shares called for redemption shall be entitled to all
                 preferences and relative and other rights accorded by this
                 resolution until and including the day immediately prior to the
                 date (the "Final Redemption  Date") when the Corporation makes
                 payment as aforesaid to the holders of the preferred  stock.
                 From and after the Redemption Date or, if the Corporation shall
                 default in making payment or delivery as aforesaid, the Final
                 Redemption Date, the shares called for redemption shall no
                 longer be deemed to be outstanding, and all rights of the
                 holders of such shares shall cease and terminate, except the
                 right of the holders of such shares, upon surrender of
                 certificates therefor, to receive amounts to be paid hereunder.
                 The deposit of monies in trust with the Redemption Agent shall
                 be irrevocable except that the Corporation shall be entitled
                 to receive from the Redemption Agent the interest of other
                 earnings, if any, earned on any monies so deposited in trust,
                 and the holders of any shares redeemed shall have no claim
                 to such interest or other earnings, and any balance of monies
                 so deposited by the Corporation and unclaimed by the holders
                 of the preferred stock entitled thereto at the expiration of
                 two (2) years from the Redemption Date (or the Final Redemption
                 Date, as applicable) shall be repaid, together with any
                 interest or other earnings thereon, to the Corporation, and
                 after any such repayment, the holders of the shares entitled
                 to the funds so repaid to the corporation shall look only to
                 the Corporation for such payment, without interest.

5.       VOTING RIGHTS.  The preferred stock issued and outstanding will possess
voting rights only to the extent required by law and as provided herein. If and
to the extent the preferred stock may be entitled to vote on any matter, each
whole share of the preferred stock voting shall be counted as one (1) vote and
the fractional shares voting will be counted as fractional votes, in each case
the fractional vote will be the same as the fraction of a share that is voting,
except that

                                       5
<PAGE>

in any case when the preferred stock is voting on any matter with the common
stock, each share or fractional share of the preferred stock voting will be
counted as having the same vote as the shares of common stock into which that
preferred stock could be converted at the time of voting.

6.        LIQUIDATION PREFERENCE AND MERGER.

          (a)    In the event of the voluntary or involuntary liquidation,
                 dissolution, or other winding up of the affairs of the
                 Corporation, prior to any payment or distribution to the
                 holders of the Corporation's common stock or with respect
                 to any other stock which is not to receive assets of the
                 Corporation before receipt by the holders of the preferred
                 stock of the full amount they are to receive as provided in
                 this subparagraph the holders of the preferred stock shall
                 be entitled to receive for the preferred stock an amount
                 equal to (with each holder entitled to that part of such
                 amount as is attributable to his shares) (i) the Dollar Value
                 of the preferred stock outstanding and (ii) all accrued and
                 unpaid dividends through the date of liquidation, dissolution
                 or other winding up of the affairs of the Corporation
                 (including a pro rated dividend based on the number of days
                 elapsed from the last day of the most recent completed
                 quarterly dividend period through the date of liquidation,
                 dissolution or winding up of the affairs of the Corporation).

          (b)    The amount payable pursuant to paragraph 6(a) shall be paid
                 in cash to the extent available to the Corporation and to the
                 extent not so in property taken at its fair value as
                 determined by the Board of Directors. If such payment shall
                 have been made in full to the holders of the preferred stock,
                 the remaining assets and funds of the Corporation shall be
                 distributed among the holders of common or other stock
                 remaining outstanding of the Corporation according to their
                 respective shares and priorities.

          (c)    In the event of the liquidation, dissolution, or winding up
                 of the affairs of the Corporation as described in paragraph
                 6(a), the holders of the preferred stock will share in the
                 assets, funds, and property of the Corporation on a parity
                 with or junior to, as the case may be, any other stock of the
                 Corporation which is to share on a parity with or prior to the
                 preferred stock under such circumstances in accordance with the
                 provisions of the Certificate of Incorporation or Certificate
                 of Designation related to that other stock.

          (d)    The Corporation will not, without first obtaining the
                 affirmative vote or written consent of the holders of not less
                 than 92% of the shares of preferred stock outstanding at the
                 time, consolidate or merge with another corporation or
                 corporations (other than any mergers or consolidations of the
                 Corporation with any of its subsidiaries, whether owned
                 directly or indirectly by the Corporation, which mergers and
                 consolidations this paragraph 6(d) will not apply to) or sell,
                 lease, transfer or otherwise dispose of, in one transaction
                 or a series of related transactions, all or substantially all
                 of its assets without first paying the holders of the preferred
                 stock outstanding the same amount through the date of the
                 merger, consolidation, sale, lease, transfer, or other
                 disposition as is provided in clauses (i)

                                       6
<PAGE>

                 and (ii) of paragraph 6(a) through the date of liquidation,
                 dissolution, or winding up and in accordance with paragraph
                 6(b).

7.        CONVERSION.

          (a)    Each whole share of preferred stock will be convertible at
                 any time after issuance by the holder into 10 shares of
                 common stock of the Corporation, or as such number is adjusted
                 pursuant to the following provisions, such number as stated
                 above and as it may be adjusted to be ratably reduced downward
                 for fractional shares outstanding of the preferred stock. The
                 number of shares of common stock into which the preferred stock
                 is convertible is based on a conversion price of $10,000 per
                 share of common stock. Such price shall be ratably adjusted to
                 reflect any change in the number of shares of common stock into
                 which the preferred stock is convertible pursuant to the
                 provisions of paragraph 7(b). In addition, if after the date
                 hereof the Corporation shall, at any time while the preferred
                 stock remains outstanding, otherwise than as a result of any of
                 the events as described in paragraph 7(b) issue any (i) shares
                 of common stock, or (ii) securities that are convertible into
                 or exchangeable for common stock, or (iii) options, warrants or
                 other rights to acquire common stock, in any case described
                 under clause (i), (ii), or (iii), at a price of less than
                 $10,000 per share of common stock or, after such price has been
                 adjusted from $10,000 per share pursuant to the foregoing
                 provisions or the following provisions of this paragraph 7(a),
                 at a price less than the amount to which such $10,000 may
                 previously have been appropriately adjusted pursuant to the
                 foregoing provisions or the following provisions of this
                 paragraph 7(a), then each whole share of preferred stock will
                 be convertible at any time thereafter by the holder into the
                 number of shares of common stock of the Corporation based upon
                 a new conversion price equal to the lowest issuance,
                 conversion, exchange, or exercise price, as the case may be,
                 for the common stock pursuant to clause (i), (ii), or (iii)
                 above, adjusting such price appropriately for any events
                 described in paragraph 7(b). Fractional shares of preferred
                 stock may be converted on a ratable basis at such new adjusted
                 conversion price. Each holder may convert his preferred stock
                 in whole or in such part (including fractional shares) as he
                 chooses when he converts the stock.

          (b)    If at any time after September 30, 1994 and prior to the
                 conversion of the preferred stock the Corporation shall have
                 effected a common stock split or the outstanding common stock
                 of the Corporation shall have been subdivided or combined into
                 a greater or lesser number of shares or shares of its common
                 stock shall have been distributed as a dividend on any class
                 of its stock, and after giving effect to any prior adjustments
                 under paragraph 7(a) and this paragraph 7(b), the number of
                 shares of common stock into which each share of preferred
                 stock can be converted shall be increased or decreased to
                 reflect proportionately the increase or decrease in the number
                 of shares of common stock outstanding.

                                       7
<PAGE>

          (c)    Upon the occurrence of any event which requires any of the
                 adjustments provided for above, then and in each such case the
                 Corporation shall give notice thereof to the holders of the
                 preferred stock, which notice shall state the increase or
                 decrease, if any, in the number of shares of common stock
                 into which the preferred stock shall be convertible, setting
                 forth in reasonable detail the method of calculation and the
                 facts upon which such calculation is based.

          (d)    In case after September 30, 1994, at any time:

                       (i)   the Corporation shall offer for subscription pro
                 rata to the holders of the common stock any additional shares
                 of stock of any class or other rights;

                       (ii)  there shall be any capital reorganization of the
                 Corporation, or reclassification of the common stock, or
                 consolidation or merger of the Corporation with or into
                 (other than with a wholly owned subsidiary), or sale of all
                 or substantially all of its assets to, another corporation or
                 entity; or

                       (iii) there shall be a voluntary or involuntary
                 dissolution, liquidation, or winding-up of the Corporation;

                 then, in each such case, the Corporation shall give to the
                 holders the preferred stock (a) notice of the date on which
                 the books of the Corporation shall close or a record shall
                 be taken for determining the holders of common stock
                 entitled to receive any such subscription rights or for
                 determining the holders of common stock entitled to vote in
                 respect of any such reorganization, reclassification,
                 consolidation, merger, sale, dissolution, liquidation, or
                 winding-up and (b) in the case of any such reorganization,
                 reclassification, consolidation, merger, sale, dissolution,
                 liquidation or winding-up, notice of the date (or, if not
                 then known, a reasonable approximation thereof by the
                 Corporation) when the same shall take place. Such notice
                 shall also specify the date on which the holders of common
                 stock shall be entitled to receive such subscription rights
                 or to exchange their common stock for stock or other
                 securities or property deliverable upon such reorganization,
                 reclassification, consolidation, merger, sale, dissolution,
                 liquidation, or winding-up, as the case may be. Such notice
                 shall be given at least twenty (20) days prior to the record
                 date or the date on which the Corporation's books are closed
                 in respect thereof. Failure to give any such notice or any
                 defect therein shall not affect the validity of the
                 proceedings referred to in clause (i), (ii), and (iii) above.

          (e)    Any accrued and unpaid dividends on the preferred stock being
                 converted (with the current quarterly dividend for the quarter
                 during which the conversion occurs being paid in an amount
                 prorated to the date of conversion) shall either be paid within
                 five (5) days of the conversion to the converting preferred
                 stock holder in cash or in an additional number of whole and/or
                 fractional shares of common stock equal to the number of common
                 shares that would have been issued had the total amount of
                 those dividends which were not paid in cash represented an

                                       8
<PAGE>

                 equivalent Dollar Value of additional preferred stock converted
                 along with the preferred stock that was actually converted by
                 the holder.

          (f)    The certificate for the shares of the preferred stock being
                 converted will be surrendered to the Corporation, and if less
                 than all shares of the preferred stock represented by a
                 certificate are converted, a certificate for the number of
                 shares not converted, which shall have a Dollar Value
                 commensurate with that number of shares, shall be returned to
                 the holder.

8.        RESERVATION OF STOCK ISSUABLE UPON CONVERSION.  The Corporation
shall at all times reserve and keep available out of its authorized, but
unissued, shares of common stock, solely for the purpose of effecting the
conversion of the shares of the preferred stock, such number of its shares of
common stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the preferred stock and to effect the
exercise of all rights, warrants, and options to purchase common stock; and
if at any time the number of authorized, but unissued, shares of common stock
shall not be sufficient to effect the conversion of all then outstanding
shares of the stock, and such other convertible stock or securities and
rights, warrants, and options, the Corporation  will take such corporate
action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of common stock to such number of shares as
shall be sufficient for such purpose.

9.        NOTICES.  Any notice required by the provisions hereof to be given
to any holders of shares of the preferred stock shall be deemed given upon
the earlier of actual receipt, or seventy-two (72) hours after the same has
been deposited in the United States mail, by certified or registered mail,
return receipt requested, postage prepaid, and addressed to the holder of
record at his address appearing on the books of the Corporation.

10.       ISSUANCE TAX.  The issuance of certificates for common stock upon
the conversion of preferred stock shall be made without charge to the
converting holder of the preferred stock for any issuance tax in respect
thereof, provided that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than the holder of the preferred
stock converted therefor.

11.       EXCLUSION OF OTHER RIGHTS.  Except as may otherwise be required by
law, the shares of preferred stock shall not have any preferences or
relative, participating, optional or other special rights, other than those
specifically set forth herein and in the Corporation's Certificate of
Incorporation. The shares of preferred stock shall have no preemptive or
subscription rights.

12.       AMENDMENT, ETC.  In addition to any other rights provided by law,
so long as any preferred stock is outstanding, the Corporation, without first
obtaining the affirmative vote or written consent of the holders of not less
than ninety two percent (92%) of the shares of preferred stock outstanding at
the time, will not:

          (a)    amend or repeal any provision of, or add any provision to,
                 the Certificate of Incorporation, the Certificate of
                 Designations related to the preferred stock, or By-Laws if
                 such action would materially adversely change the preferences,
                 rights, privileges or powers of, or the restrictions provided
                 for the benefit of, the

                                       9
<PAGE>

                 preferred stock, or increase or decrease the number of shares
                 of preferred stock authorized hereby; or

          (b).   authorize or increase the authorized number of shares of any
                 series or class of stock, which would be entitled to receive
                 dividends or other distributions at any time in preference to
                 the preferred stock before any of the dividends under
                 paragraph 3 hereof for that period and all past quarterly
                 dividend periods prior to such time have been paid on the
                 preferred stock, or would be entitled to receive assets upon
                 the liquidation, dissolution, or winding up of the affairs of
                 the Corporation in preference to the preferred stock before any
                 of the assets the preferred stock is to receive under those
                 circumstances have been received, except that a merger or
                 consolidation of the Corporation into another corporation or
                 corporations pursuant to which the holders of the preferred
                 stock are to receive stock of the surviving corporation or
                 corporations with substantially the same preferences, rights,
                 privileges, powers, and restrictions for the benefit of such
                 holders as the preferred stock of the Corporation will not be
                 deemed an event that falls within this subparagraph or
                 subparagraph (a) immediately above.

13.       HEADINGS OF SUBDIVISIONS.  The headings of the various paragraphs
hereof are for convenience of reference only and shall not affect the
interpretation of any of the provisions hereof.

14.       SEVERABILITY OF PROVISIONS.  If any right, preference, or limitation
of the preferred stock set forth herein is invalid, unlawful or incapable of
being enforced by reason or any rule of law or public policy, all other rights,
preferences, and limitations set forth herein which can be given effect without
the invalid, unlawful or unenforceable right, preference or limitation shall,
nevertheless, remain in full force and effect, and no right, preference or
limitation herein set forth shall be deemed dependent upon any other such right,
preference or limitation unless so expressed herein.

15.       STATUS OF REACQUIRED SHARES. Share of preferred stock which have been
issued and reacquired by the Corporation in any manner or converted shall be
canceled, and will no longer have the status of authorized shares of preferred
stock or be capable of being issued.

16.       SINGULAR, PLURAL, ETC. Herein, unless the context is to the contrary,
references to the singular shall include the plural, to the masculine shall
include the feminine and the neuter, and to shares of stock shall include
fractional shares, and VICE VERSA, and, unless the context is otherwise,
references to the holder of stock shall mean the record holder and references
to the voting or the consent of the holders of such stock shall mean the record
holders of the stock as of the record date set by the Board of Directors for
such vote or consent.

          IN WITNESS WHEREOF, Lone Star Steel Company has caused this
Certificate to be duly executed this 9th date of November, 1994.

                                                     LONE STAR STEEL COMPANY

                                                     By:
                                                        ------------------------
                                                     ---------------------------

                                       10
<PAGE>

                                                     ---------------------------
         ATTEST:

         ------------------------
         SECRETARY

                                       11
<PAGE>

                                   ATTACHMENT 1

                            CERTIFICATE OF AMENDMENT

                                       TO

                          CERTIFICATE OF INCORPORATION

                                       OF

                             LONE STAR STEEL COMPANY

         Pursuant to provisions of Section 242 of the Delaware General
Corporation Law, the undersigned, LONE STAR STEEL COMPANY, a corporation
organized and existing under the statutes of the State of Delaware (the
"Corporation"), adopts the following Certificate of Amendment to its Certificate
of Incorporation:

                                   ARTICLE ONE

         Article Fourth of the Certificate of Incorporation is hereby amended to
read in its entirety as follows:

         FOURTH: The aggregate number of shares of capital stock which the
Corporation shall have authority to issue is 20,000, consisting of 15,000 shares
of common stock, with a par value of $1.00 per share ("Common Stock"), and five
thousand (5,000) shares of preferred stock with a par value of $1.00 per share
("Preferred Stock").

         A.       Common Stock.

         At any meeting of stockholders of the Corporation each holder of Common
Stock shall be entitled to one vote for each share of Common Stock held by such
holder.

                                       12
<PAGE>

         B.       Preferred Stock.

         1.       Shares of Preferred Stock may be issued from time to time
in one or more series, the shares of each series to have such designations,
powers, preferences, rights, qualifications, limitations, and restrictions as
are stated and expressed herein and in the resolution or resolutions
providing for the issuance of such series adopted by the Board of Directors
as hereinafter provided. Unless otherwise provided by any resolution or
resolutions adopted by the Board of Directors providing for the issuance of
Preferred Stock, Preferred Stock shall be nonparticipating and dividends on
Preferred Stock shall be cumulative from date of issues and shall not bear
interest.

         2.       Authority is hereby expressly granted to the Board of
Directors to authorize the issuance of Preferred Stock from time to time in
one or more series, and with respect to each series of Preferred Stock, to
fix and determine by the resolution or resolutions from time to time adopted
providing for the issuance thereof, the number of shares to constitute the
series, the designation thereof and any powers, preferences, rights,
qualifications, limitations and restrictions not prohibited by law,
including, but not limited to, one or more of the following rights and
preferences: (A) the rate of dividend, (B) the price at and the terms and
conditions on which shares may be redeemed, (C) the amount payable upon
shares in the event of involuntary liquidation, (D) the amount payable upon
shares in the event of voluntary liquidation, (E) sinking fund provisions (if
any) for the redemption or purchase of shares, (F) the terms and conditions
on which shares may be converted if the shares of any series are issued with
the privilege of conversion, and (G) voting rights (including the number of
votes per share, the matters on which the shares can vote and the
contingencies, if any, which make the voting rights effective). The shares of
each series of Preferred Stock may vary from the shares of any other series
thereof in any or all of the foregoing respects. The Board of Directors may
increase the number of shares designated for any existing series by adding to
such series authorized and unissued shares not designated for any other
series. The Board of Directors may decrease the number of shares designated
for any existing series by subtracting from such series unissued shares
designated for such series and the shares so subtracted shall become
authorized and unissued shares of Preferred Stock.

         3.       All or any part of any series of Preferred Stock may be
redeemed at any time or times at the option of the Corporation by resolution
of the Board of Directors, in accordance with the terms and conditions fixed
by the Board of Directors in the resolution or resolutions providing for the
issuance of such series. The Corporation may redeem shares of any one of more
series of Preferred Stock without redeeming shares of any other series.

                                   ARTICLE TWO

         The holders of all of the outstanding shares of stock entitled to give
written consent to said amendment without a stockholders meeting have been given
the opportunity to do so, and a majority of the outstanding stock entitled to
consent thereto has given written consent to the adoption of said amendment, and
written notice that such consent, which was not unanimous, has been given to the
stockholder that did not consent in writing.

                                       13
<PAGE>

         The number of shares outstanding at the time of such adoption was one
thousand (1,000); the number of shares entitled to vote or consent thereon was
one thousand (1,000).

         DATED NOVEMBER 9, 1994.

                                              LONE STAR STEEL COMPANY

                                              By: Rhys J. Best
                                                 ------------------------------
                                                  Rhys J. Best

         ATTEST:

         James T. Dougherty
         ------------------------------
         James T. Dougherty, Secretary

                                       14
<PAGE>

                            CERTIFICATE OF AMENDMENT

                            PREFERRED STOCK, SERIES A
                           (PAR VALUE $1.00 PER SHARE)
                             LONE STAR STEEL COMPANY

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

                         PURSUANT TO SECTION 242 OF THE

                GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

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

          The Undersigned DOES HEREBY CERTIFY that the amendments to the
original Certificate of Designations of the Preferred Stock, Series A, of
Lone Star Steel Company (hereinafter called the "Corporation") included in
this Certificate of Amendment (herein sometimes called the "Certificate of
Amendment Amending the Certificate of Designations"), which includes those
amendments and is also a complete restatement of the original Certificate of
Designations as so amended, were, to the extent required, duly adopted,
including in accordance with the provisions of Section 242 of the General
Corporation Law of the State of Delaware (the "GCL of Delaware"), by written
consent of the stockholders of the Corporation approving such amendments as
of October 30, 1995, pursuant to Section 228 of the GCL of Delaware and the
written notice as provided in said section has been given, and that the
following resolution was duly adopted as of October 10, 1995, by the Board of
Directors (the "Board of Directors"), of the Corporation pursuant to
authority conferred upon them by the Certificate of Incorporation, as amended
(the "Certificate of Incorporation"), of the Corporation and the amendments
to the original Certificate of Designations included in that resolution are
to become effective upon the filing of this Certificate of Amendment Amending
the Certificate of Designations with the Secretary of State of Delaware:

          RESOLVED, that pursuant to the authority vested in the Board of
Directors by Article Fourth of the Certificate of Incorporation, and subject
to the receipt of such approval as is required of the stockholders of the
Corporation, the series of preferred stock of the Corporation designated
Preferred Stock, Series A (the "preferred stock") and the original
Certificate of Designations with respect thereto, be, and the same hereby
are, amended, including, but not limited to, in the number of shares that
comprise the series, which shall be increased out of the authorized but
unissued shares of the preferred stock of the Corporation by 75 shares to 450
shares, par value $1.00 per share, and in the powers, designations,
preferences and relative and other rights, and the qualifications,
limitations or restrictions of the preferred stock (in addition to those set
forth in the Certificate of Incorporation), and as amended the original
Certificate of Designations with respect to the preferred stock shall be as
set forth hereinabove and as follows in this Certificate of Amendment
Amending the Certificate of Designations (which is a complete restatement of
the original Certificate of Designations as amended hereby, and is referred
to below as the "Amended Certificate of Designations"):

                                       1

<PAGE>

1.   AMOUNT OF ISSUANCE.

     (a)   To the extent the common stockholders of the Corporation identified
           in this paragraph 1(a) below, who have expressed their willingness to
           assist in the financing of the acquisition and as necessary the
           installation of certain equipment and production facilities for the
           Corporation (the "First Capital Project"), advance funds towards that
           project, those common stockholders, to wit: Lone Star Technologies,
           Inc. ("LST"), and TCW Special Credits Fund, TCW Special Credits Fund
           II, TCW Special Credits Fund IIb, Weyerhaeuser Company Master Pension
           Trust, and Inland Steel Industries Pension Trust (the "TCW Holders"),
           except as stated in paragraph 1(b), will receive, each time that
           funds are advanced to the Corporation for the First Capital Project,
           and the Corporation will issue, each such time, in total to LST and
           the TCW Holders on the date each advance is made, that number of
           shares (and/or fractions of shares) of preferred stock as equal the
           number derived, when the total advance is divided by One Hundred
           Thousand and No/100 Dollars ($100,000.00), such that, for each One
           Hundred Thousand and No/100 Dollars ($100,000.00) advanced, one (1)
           whole share will be issued. Of the total shares of the preferred
           stock to be issued each time shares are to be issued as provided
           above, 90.84% of the total shares to be issued will be issued to LST,
           9.16% of the total shares to be issued will be issued to the TCW
           Holders. Merced Partners Limited Partnership ("Merced") is also
           participating in the aforesaid financing contemplated under this
           paragraph 1(a) to the extent of 1.087% of the funds advanced, but
           acquires the shares of preferred stock it is entitled to from LST
           upon the basis of that percentage participation. The total share
           issuable to the TCW Holders, each time shares are to be issued to
           them, shall be issued individually among them as the TCW Holders
           shall direct. Funds were advanced towards the First Capital Project
           and shares of the preferred stock were issued in return therefor,
           prior to this Amended Certificate of Designations becoming
           effective, and all of that is acknowledged and confirmed.

     (b)   After a total of $23,000,000.00 has been advanced to the Corporation
           under paragraph 1(a) above for the First Capital Project, including
           amounts advanced prior to this restatement and amounts advanced on
           and hereafter, as additional advances are made to the Corporation
           for the First Capital Project in excess of $23,000,000.00, the
           preferred stock, each time an advance is made, shall be issued to
           LST, the TCW Holders, Merced and Cargill Financial Services
           Corporation ("Cargill") in the following respective percentages:
           83.62% to LST; 12.72% to the TCW Holders; 0.90% to Merced; and 2.76%
           to Cargill. In all other respects the shares will be issued upon
           advances toward the First Capital Project under this paragraph 1(b)
           in the same manner as provided in paragraph 1(a).

     (c)   The "Dollar Value" of the shares of preferred stock shall be One
           Hundred Thousand and No/100 Dollars ($100,000.00) per share, and as
           proportionately adjusted downward shall be the "Dollar Value" of
           fractional shares. Each share of preferred stock shall have a par
           value of One and No/100 Dollar ($1.00) per whole share, and the
           entire series of preferred stock shall consist of four hundred fifty
           (450) authorized shares. Fractional shares may be issued.

                                       2

<PAGE>

     (d)   The foregoing provisions of this paragraph 1 will inure to the
           benefit of the respective successors to LST, each of the TCW Holders,
           Merced and Cargill so that such successors upon advances of funds
           being made for the First Capital Project will be entitled to receive
           the preferred stock which the party they succeeded otherwise would
           have been entitled to receive under the foregoing provisions. Unless
           the context indicates otherwise, herein the references to "preferred
           stock" refer to this Preferred Stock, Series A, and not to any other
           preferred stock.

2.   ISSUANCE DATE. The preferred stock will be issued in the number of
shares (or fractions of shares) to LST, the TCW Holders and as stated to
Merced and Cargill, as provided in paragraphs 1(a) and 1(b) above, as and
when each advance is made by any of them to fund the First Capital Project.
While the shares of the preferred stock will be issued by the Corporation
when the advances are made, certificates for the shares of such preferred
stock will be delivered to the shareholders entitled thereto for the
preceding calendar quarter based upon the advances to fund the First Capital
Project made during that quarter each January 1, April 1, July 1, and October
1 after September 30, 1994. In addition, shares of the preferred stock may be
issued in payment of dividends as provided under paragraph 3 below, and the
shares of preferred stock to be issued as dividends will be issued, in each
case, when the dividend that the  stock is to pay, is, pursuant to action of
the Board of Directors, to be paid, and the share certificates for such stock
will be furnished at the same time by the Corporation to the holders entitled
thereto.

3.   DIVIDENDS.

     (a)   The holders of preferred stock will be entitled to a cumulative
           dividend at the rate of six percent (6%) per annum on the Dollar
           Value of the shares of preferred stock issued and outstanding
           accruing from the date of issuance. No dividends of any kind or
           other distributions are permitted to be paid or made on Corporation's
           common stock at any time while any preferred stock is outstanding.

     (b)   As to any share of preferred stock, commencing on the January 1,
           April 1, July 1, or October 1 first to occur after such stock is
           issued, and for each succeeding quarterly period ending immediately
           prior to each succeeding January 1, April 1 July 1, and October 1,
           the holder of such stock shall be entitled to receive, when and as
           declared as hereinafter provided, out of funds legally available for
           that purpose, cash dividends of one and one-half percent (1.5%) of
           the Dollar Value of each share or fractional share held (prorated
           for the first such dividend period at the rate of one and one-half
           percent (1.5%) per quarter accruing from the actual issue date to the
           end of that dividend period), and no more. All dividends shall be
           payable in arrears, when and as declared by the Board of Directors.
           Each such dividend shall be paid to the holders of record of the
           preferred stock as their names appear on the share register of the
           Corporation on the date set as the record date for such dividend.
           Dividends on account of arrears for any past dividend periods may be
           declared and paid at any time without reference to any dividend
           payment date, to holders of record on a date, not exceeding thirty
           (30) calendar days preceding the payment date thereof, as may be
           fixed by the Board of Directors.

                                       3

<PAGE>

     (c)   To the extent, on any dividend payment date, the holders of the
           preferred stock shall not have received the full dividends for all
           periods ended up to that date provided for in the other provisions of
           this paragraph 3, then such dividends shall cumulate, whether or not
           declared and irrespective of whether such dividends could have been
           paid for such periods under applicable law. It is understood that no
           dividends may be paid in respect of the preferred stock prior to
           January 1, 1995 (although dividends will accrue on the preferred
           stock outstanding prior to that date).

     (d)   If at any time the Corporation pays less than the total amount of
           dividends then accrued and payable with respect to the preferred
           stock, such payment shall be distributed ratably among the holders
           of the preferred stock. Any payment made by the Corporation on the
           unpaid cumulative dividends, if less than the total amount of such
           dividends, shall be applied first to those dividends that have been
           accrued for the longest time.

     (e)   The Corporation may at any time to the extent it so elects, declare
           that dividends on the preferred stock which have accrued will be
           payable in shares of preferred stock of a Dollar Value equal to the
           dividends to be paid with such stock. Any holder of preferred stock
           on which a cash dividend has been declared and before it is paid may
           elect to similarly have the Corporation pay any such dividend to the
           holder, to the extent the holder elects, in preferred stock of the
           Dollar Value equal to the dividend the holder has elected to be so
           paid.

4.   REDEMPTION.

     (a)   The Corporation may, provided the Board of Directors has adopted a
           resolution approving such action, redeem the preferred stock, in
           whole or in part, in cash, at any time by paying the holder or
           holders of the shares to be redeemed (i) the Dollar Value of such
           stock and (ii) all accrued and unpaid dividends through the date of
           redemption on the shares to be redeemed (including a pro rated
           dividend based on the number of days elapsed from the last day of the
           most recent completed quarterly dividend period through the
           redemption date). Each holder of stock redeemed shall be entitled to
           payment of that part of the total amount described above for all the
           redeemed stock as is attributable to his redeemed stock. If the Board
           of Directors has authorized a redemption which, when authorized, was
           of less than all of the outstanding shares of the preferred stock,
           and because of subsequent conversions of the preferred stock since
           then, amounts to more than the actual outstanding shares on the
           Redemption Date or, if applicable, the Final Redemption Date, the
           Board of Directors' authorization shall be deemed amended to the
           number of such outstanding shares on the Redemption Date or, if
           applicable, the Final Redemption date which shall be the number
           authorized for redemption. Any redemption of the preferred stock
           outstanding shall be accomplished by redeeming from each holder of
           record all or a fraction of each holder's shares, the numerator of
           which is the total number of shares to be redeemed as authorized by
           the Board of Directors or as deemed amended as provided above, and
           the denominator of which is the total number of shares of

                                       4

<PAGE>

           preferred stock outstanding on the Redemption Date or, if applicable,
           the Final Redemption Date.

     (b)   On January 3, 2002, the Corporation shall be obligated to redeem the
           preferred stock outstanding as a mandatory redemption in whole for
           cash. The redemption price shall be equal to the Dollar Value of the
           shares redeemed together with any accrued but unpaid dividends on
           such shares to and including the date of redemption, as specified in
           clauses (i) and (ii) of paragraph 4(a). If less than all of the
           outstanding shares of the preferred stock can be redeemed under
           applicable law, such shares shall be redeemed pro rata or by lot as
           determined by the Board of Directors in its sole discretion to the
           maximum extent permitted by applicable law, and the remaining shares
           shall be redeemed as and when they can be redeemed under law.

     (c)   Notice of every proposed redemption of the preferred stock shall be
           sent by or on behalf of the Corporation, by first class mail, postage
           prepaid, to the holders of record of the shares to be redeemed at
           their respective addresses as they shall appear on the records of the
           Corporation, not less than thirty (30) days nor more than sixty (60)
           days prior to the date fixed for redemption (the "Redemption Date")
           (i) notifying such holders of the election of the Corporation to
           redeem such shares and of the Redemption Date and (ii) stating the
           place or places at which the shares called for redemption shall, upon
           presentation and surrender of the certificates evidencing such
           shares, be redeemed, and the redemption price therefor, and (iii)
           stating the name and address of any redemption agent selected by the
           Corporation if other than the Corporation, and the name and address
           of the Corporation's transfer agent for the preferred stock. The
           Corporation may act as the transfer agent for the preferred stock.

     (d)   The Corporation may act as the redemption agent to redeem the
           preferred stock or appoint as its agent for such purpose a bank or
           trust company in good standing, organized under the law of the United
           States of America or any jurisdiction thereof, and having capital,
           surplus and undivided profits aggregating at least Twenty Million and
           No/100 Dollar ($20,000,000.00), and may appoint any one or more
           additional such agents which shall in each case be a bank or trust
           company in good standing organized under the laws of the United
           States of America or of any jurisdiction thereof, having an office or
           offices in the City of Dallas, Texas, or such other place as shall
           have been designated by the Corporation, and having capital, surplus,
           and undivided profits aggregating at least Twenty Million and No/100
           Dollars ($20,000,000.00). The Corporation or such bank or trust
           company is hereinafter referred to as the "Redemption Agent."
           Following such appointment and prior to any redemption, the
           Corporation shall deliver to the Redemption Agent irrevocable
           written instructions authorizing the Redemption Agent, on behalf and
           at the expense of the Corporation, to cause such notice of redemption
           to be duly mailed as herein provided as soon as practicable after
           receipt of such irrevocable instructions and in accordance with the
           above provisions. All funds necessary for the redemption shall be
           deposited with the Redemption Agent in trust at least one (1)
           business day prior to the Redemption

                                       5

<PAGE>

           Date, for the pro rata benefit of the holders of the shares so called
           for redemption, so as to be and continue to be available therefor.
           Neither failure to mail any such notice to one (1) or more such
           holders nor any defect in any notice shall affect the sufficiency of
           the proceedings for redemption as to the other holders.

     (e)   If notice of redemption shall have been given as hereinbefore
           provided, and the Corporation shall not default in the payment of the
           redemption price, then each holder of shares called for redemption
           shall be entitled to all preferences and relative and other rights
           accorded by this resolution until and including the day immediately
           prior to the Redemption Date. If the Corporation shall default in
           making payment or delivery as aforesaid on the Redemption Date, then
           each holder of the shares called for redemption shall be entitled to
           all preferences and relative and other rights accorded by this
           resolution until and including the day immediately prior to the date
           (the "Final Redemption Date") when the Corporation makes payment as
           aforesaid to the holders of the preferred stock. From and after the
           Redemption Date or, if the Corporation shall default in making
           payment or delivery as aforesaid, the Final Redemption Date, the
           shares called for redemption shall no longer be deemed to be
           outstanding, and all rights of the holders of such shares shall
           cease and terminate, except the right of the holders of such shares,
           upon surrender of certificates therefor, to receive amounts to be
           paid hereunder. The deposit of monies in trust with the Redemption
           Agent shall be irrevocable except that the Corporation shall be
           entitled to receive from the Redemption Agent the interest of other
           earnings, if any, earned on any monies so deposited in trust, and the
           holders of any shares redeemed shall have no claim to such interest
           or other earnings, and any balance of monies so deposited by the
           Corporation and unclaimed by the holders of the preferred stock
           entitled thereto at the expiration of two (2) years from the
           Redemption Date (or the Final Redemption Date, as applicable) shall
           be repaid, together with any interest or other earning thereon, to
           the Corporation, and after such repayment, the holders of the shares
           entitled to the funds so repaid to the Corporation shall look only to
           the Corporation for such payment, without interest.

5.   VOTING RIGHTS. The preferred stock issued and outstanding will possess
voting rights only to the extent required by law and as provided herein. If
and to the extent the preferred stock may be entitled to vote on any matter,
each whole share of the preferred stock voting shall be counted as one (1)
vote and the fractional shares voting will be counted as fractional  votes,
in each case the fractional vote will be the same as the fraction of a share
that is voting, except that in any case when the preferred stock is voting on
any matter with the common stock, each share or fractional share of the
preferred stock voting will be counted as having the same vote as the shares
of common stock into which that preferred stock could be converted at the
time of voting.

6.   LIQUIDATION PREFERENCE AND MERGER.

     (a)   In the event of the voluntary or involuntary liquidation,
           dissolution, or other winding up of the affairs of the Corporation,
           prior to any payment or distribution to the holders of the
           Corporation's common stock or with respect to any other

                                       6

<PAGE>

           stock which is not to receive assets of the Corporation before
           receipt by the holders of the preferred stock of the full amount they
           are to receive as provided in this subparagraph the holders of the
           preferred stock shall be entitled to receive for the preferred stock
           an amount equal to (with each holder entitled to that part of such
           amount as is attributable to his shares) (i) the Dollar Value of the
           preferred stock outstanding and (ii) all accrued and unpaid dividends
           through the date of liquidation, dissolution or other winding up of
           the affairs of the Corporation (including a pro rated dividend based
           on the number of days elapsed from the last day of the most recent
           completed quarterly dividend period through the date of liquidation,
           dissolution or winding up of the affairs of the Corporation).

     (b)   The amount payable pursuant to paragraph 6(a) shall be paid in cash
           to the extent available to the Corporation and to the extent not so
           in property taken at its fair value as determined by the Board of
           Directors. If such payment shall have been made in full to the
           holders of the preferred stock, the remaining assets and funds of the
           Corporation shall be distributed among the holders of common or other
           stock remaining outstanding of the Corporation according to their
           respective shares and priorities.

     (c)   In the event of the liquidation, dissolution, or winding up of the
           affairs of the Corporation as described in paragraph 6(a), the
           holders of the preferred stock will share in the assets, funds, and
           property of the Corporation on a parity with or junior to, as the
           case may be, any other stock of the Corporation which is to share on
           a parity with or prior to the preferred stock under such
           circumstances in accordance with the provisions of the Certificate of
           Incorporation or Certificate of Designation related to that other
           stock.

     (d)   The Corporation will not, without first obtaining the affirmative
           vote or written consent of the holders of not less than 92% of the
           shares of preferred stock outstanding at the time, consolidate or
           merge with another corporation or corporations (other than any
           mergers or consolidations or the Corporation with any of its
           subsidiaries, whether owned directly or indirectly by the
           Corporation, which mergers and consolidations this paragraph 6(d)
           will not apply to) or sell, lease, transfer or otherwise dispose of,
           in one transaction or a series of related transactions, all or
           substantially all of its assets without first paying the holders of
           the preferred stock outstanding the same amount through the date of
           the merger, consolidation, sale, lease, transfer, or other
           disposition as is provided in clauses (i) and (ii) of paragraph 6(a)
           through the date of liquidation, dissolution, or winding up and in
           accordance with paragraph 6(b).

7.   CONVERSION.

     (a)   Each whole share of preferred stock will be convertible at any time
           after issuance by the holder into 10 shares of common stock of the
           Corporation, or as such number is adjusted pursuant to the following
           provisions, such number as stated above and as it may be adjusted to
           be ratably reduced downward for fractional shares outstanding of the
           preferred stock. The number of shares of common stock

                                       7

<PAGE>

           into which the preferred stock is convertible is based on a
           conversion price of $10,000 per share of common stock. Such price
           shall be ratably adjusted to reflect any change in the number of
           shares of common stock into which the preferred stock is convertible
           pursuant to the provisions of paragraph 7(b). In addition, if after
           the date hereof the Corporation shall, at any time while the
           preferred stock remains outstanding, otherwise than as a result of
           any of the events as described in paragraph 7(b) issue any (i) shares
           of common stock, or (ii) securities that are convertible into or
           exchangeable for common stock, or (iii) options, warrants or other
           rights to acquire common stock, in any case described under clause
           (i), (ii), or (iii), at a price of less than $10,000 per share of
           common stock or, after such price has been adjusted from $10,000 per
           share pursuant to the foregoing provisions or the following
           provisions of this paragraph 7(a), at a price less than the amount to
           which such $10,000 may previously have been appropriately adjusted
           pursuant to the foregoing provisions or the following provisions of
           this paragraph 7(a), then each whole share of preferred stock will be
           convertible at any time thereafter by the holder into the number of
           shares of common stock of the Corporation based upon a new conversion
           price equal to the lowest issuance, conversion, exchange, or exercise
           price, as the case may be, for the common stock pursuant to clause
           (i), (ii), or (iii) above, adjusting such price appropriately for any
           events described in paragraph 7(b). Fractional shares of preferred
           stock may be converted on a ratable basis at such new adjusted
           conversion price. Each holder may convert his preferred stock in
           whole or in such part (including fractional shares) as he chooses
           when he converts the stock.

     (b)   If at any time after September 30, 1994 and prior to the conversion
           of the preferred stock the Corporation shall have effected a common
           stock split or the outstanding common stock of the Corporation shall
           have been subdivided or combined into a greater or lesser number of
           shares or shares of its common stock shall have been distributed as a
           dividend on any class of its stock, and after giving effect to any
           prior adjustments under paragraph 7(a) and this paragraph 7(b), the
           number of shares of common stock into which each share of preferred
           stock can be converted shall be increased or decreased to reflect
           proportionately the increase or decrease in the number of shares of
           common stock outstanding.

     (c)   Upon the occurrence of any event which requires any of the
           adjustments provided for above, then and in each such case the
           Corporation shall give notice thereof to the holders of the preferred
           stock, which notice shall state the increase or decrease, if any, in
           the number of shares of common stock into which the preferred stock
           shall be convertible, setting forth in reasonable detail the method
           of calculation and the facts upon which such calculation is based.

     (d)   In case after September 30, 1994, at any time:

                 (i)   the Corporation shall offer for subscription pro rata to
           the holders of the common stock any additional shares of stock of any
           class or other rights;

                                       8

<PAGE>

                 (ii)  there shall be any capital reorganization of the
           Corporation, or reclassification of the common stock, or
           consolidation or merger of the Corporation with or into (other than
           with a wholly owned subsidiary), or sale of all or substantially all
           of its assets to, another corporation or entity; or

                 (iii) there shall be a voluntary or involuntary dissolution,
           liquidation, or winding-up of the Corporation;

           then, in each such case, the Corporation shall give to the holders
           of the preferred stock (a) notice of the date on which the books of
           the Corporation shall close or a record shall be taken for
           determining the holders of common stock entitled to receive any such
           subscription rights or for determining the holders of common stock
           entitled to vote in respect of any such reorganization,
           reclassification, consolidation, merger, sale, dissolution,
           liquidation, or winding-up and (b) in the case of any such
           reorganization, reclassification, consolidation, merger, sale,
           dissolution, liquidation, or winding-up, notice of the date (or, if
           not then known, a reasonable approximation thereof by the
           Corporation) when the same shall take place. Such notice shall also
           specify the date on which the holders of common stock shall be
           entitled to receive such subscription rights or to exchange their
           common stock for stock or other securities or property deliverable
           upon such reorganization, reclassification, consolidation, merger,
           sale, dissolution, liquidation, or winding-up, as the case may be.
           Such notice shall be given at least twenty (20) days prior to the
           record date or the date on which the Corporation's books are closed
           in respect thereof. Failure to give any such notice or any defect
           therein shall not affect the validity of the proceedings referred to
           in clause (i), (ii), and (iii) above.

     (e)   Any accrued and unpaid dividends on the preferred stock being
           converted (with the current quarterly dividend for the quarter during
           which the conversion occurs being paid in an amount prorated to the
           date of conversion) shall either be paid within five (5) days of the
           conversion to the converting preferred stock holder in cash or in an
           additional number of whole and/or fractional shares of common stock
           equal to the number of common shares that would have been issued had
           the total amount of those dividends which were not paid in cash
           represented an equivalent Dollar Value of additional preferred stock
           converted along with the preferred stock that was actually converted
           by the holder.

     (f)   The certificate for the shares of the preferred stock being converted
           will be surrendered to the Corporation, and if less than all shares
           of the preferred stock represented by a certificate are converted, a
           certificate for the number of shares not converted, which shall have
           a Dollar Value commensurate with that number of shares, shall be
           returned to the holder.

8.   RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Corporation shall at all
times reserve and keep available out of its authorized, but unissued, shares of
common stock, solely for the purpose of effecting the conversion of the shares
of the preferred stock, such number of its shares of common stock as shall from
time to time be sufficient to effect the conversion of all

                                       9

<PAGE>

outstanding shares of the preferred stock and to effect the exercise of all
rights, warrants, and options to purchase common stock; and if at any time
the number of authorized, but unissued, shares of common stock shall not be
sufficient to effect the conversion of all then outstanding shares of the
stock, and such other convertible stock or securities and rights, warrants,
and options, the Corporation will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of common stock to such number of shares as shall be sufficient for
such purpose.

9.   NOTICES. Any notice required by the provisions hereof to be given to any
holders of shares of the preferred stock shall be deemed given upon the
earlier of actual receipt, or seventy-two (72) hours after the same has been
deposited in the United States mail, by certified or registered mail, return
receipt requested, postage prepaid, and addressed to the holder of record at
his address appearing on the books of the Corporation.

10.  ISSUANCE TAX. The issuance of certificates for common stock upon the
conversion of preferred stock shall be made without charge to the converting
holder of the preferred stock for any issuance tax in respect thereof,
provided that the Corporation shall not be required to pay any tax which may
be payable in respect of any transfer involved in the issuance and delivery
of any certificate in a name other than the holder of the preferred stock
converted therefor.

11.  EXCLUSION OF OTHER RIGHTS. Except as may otherwise be required by law,
the shares of preferred stock shall not have any preferences or relative,
participating, optional or other special rights, other than those
specifically set forth herein and in the Corporation's Certificate of
Incorporation. The shares of preferred stock shall have no preemptive or
subscription rights.

12.  AMENDMENT, ETC. In addition to any other rights provided by law, so long
as any preferred stock is outstanding, the Corporation, without first
obtaining the affirmative vote or written consent of the holders of not less
than ninety two percent (92%) of the shares of preferred stock outstanding at
the time, will not:

     (a)   amend or repeal any provision of, or add any provision to, the
           Certificate of Incorporation, the Amended Certificate of Designations
           related to the preferred stock, or By-Laws if such action would
           materially adversely change the preferences, rights, privileges or
           powers of, or the restrictions provided for the benefit of, the
           preferred stock, or increase or decrease the number of shares of
           preferred stock authorized hereby; or

     (b)   authorize or increase the authorized number of shares of any series
           or class of stock, which would be entitled to receive dividends or
           other distributions at any time in preference to the preferred stock
           before any of the dividends under paragraph 3 hereof for that period
           and all past quarterly dividend periods prior to such time have been
           paid on the preferred stock, or would be entitled to receive assets
           upon the liquidation, dissolution, or winding-up of the affairs of
           the Corporation in preference to the preferred stock before any of
           the assets the preferred stock is to receive under those
           circumstances have been received, except that a merger or
           consolidation of the Corporation into another corporation or
           corporations pursuant to which the holders of the preferred stock are
           to receive

                                       10

<PAGE>

           stock of the surviving corporation or corporations with substantially
           the same preferences, rights, privileges, powers, and restrictions
           for the benefit of such holders as the preferred stock of the
           Corporation will not be deemed an event that falls within this
           subparagraph or subparagraph (a) immediately above.

13.  HEADINGS OF SUBDIVISIONS. The headings of the various paragraphs hereof
are for convenience of reference only and shall not affect the interpretation
of any of the provisions hereof.

14.  SEVERABILITY OF PROVISIONS. If any right, preference, or limitation of
the preferred stock set forth herein in invalid, unlawful or incapable of
being enforced by reason or any rule of law or public policy, all other
rights, preferences, and limitations set forth herein which can be given
effect without the invalid, unlawful or unenforceable right, preference or
limitation shall, nevertheless, remain in full force and effect, and no
right, preference or limitation herein set forth shall be deemed dependent
upon any other such right, preference or limitation unless so expressed
herein.

15.  STATUS OF REACQUIRED SHARES. Share of preferred stock which have been
issued and reacquired by the Corporation in any manner or converted shall be
canceled, and will no longer have the status of authorized shares of
preferred stock or be capable of being issued.

16.  SINGULAR, PLURAL, ETC. Herein, unless the context is to the contrary,
references to the singular shall include the plural, to the masculine shall
include the feminine and the neuter, and to shares of stock shall include
fractional shares, and VICE VERSA, and, unless the context is otherwise,
references to the holder of stock shall mean the record holder and references
to the voting or the consent of the holders of such stock shall mean the
record holders of the stock as of the record date set by the Board of
Directors for such vote or consent.

     IN WITNESS WHEREOF, Lone Star Steel Company has caused this Certificate
to be duly executed this 18th day of December, 1995.

                                               LONE STAR STEEL COMPANY

                                               By:
                                                  -----------------------------

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

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

     ATTEST:

     ------------------------------
     SECRETARY

                                       11<PAGE>

                                                                     EXHIBIT 4.9

                                    BY-LAWS

                                       OF

                             LONE STAR STEEL COMPANY

                            As Adopted March 6, 1986
                          As Amended September 30, 1986
                            As Amended March 1, 1988
                           As Amended January 31, 1989
                           As Amended August 11, 1989
                          As Amended September 26, 1989

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

                                   ARTICLE I

                                    OFFICES

       SECTION 1.1  REGISTERED OFFICE. The registered office of LONE STAR
STEEL COMPANY (the "Corporation") in the State of Delaware shall be located
at 1209 Orange Street, in the City of Wilmington, County of New Castle and
the name of its registered agent is The Corporation Trust Company.

       SECTION 1.2  OTHER OFFICES. The Corporation may also have offices at
such other places both within or without the State of Delaware as the Board
of Directors may from time to time determine or the business of the
Corporation may require.

                                   ARTICLE II

                            MEETINGS OF STOCKHOLDERS

       SECTION 2.1  ANNUAL MEETING. The annual meeting of the stockholders
shall be held on the second Wednesday in May for the purpose of electing
directors and for the transaction of such other business as may properly come
before the meeting. If the election of directors shall not be held on the day
hereinbefore designated for the annual meeting, or at any adjournment
thereof, the Board of Directors shall cause such election to be held at a
special meeting of stockholders as soon thereafter as convenient.

       SECTION 2.2  SPECIAL MEETINGS. Except as otherwise prescribed by
statute, special meetings of the stockholders for any purpose or purposes,
may be called and the location thereof designated by the Chairman of the
Board or by a majority of the Board of Directors.

       SECTION 2.3  PLACE OF MEETINGS. Each meeting of the stockholders for
the election of directors shall be held at the office of the Corporation in
Dallas, Texas, unless the Board of Directors shall by resolution designate
any other place, within or without the State of Delaware, as the place of
such meeting. Meetings of stockholders for any other purpose may be held at
such place, within or without the State of Delaware, and at such time as
shall be determined

<PAGE>

pursuant to Section 2.2 and stated in the notice of the meeting or in a duly
executed waiver of notice thereof.

       SECTION 2.4  NOTICE OF MEETINGS. Written or printed notice stating the
place and time of each annual or special meeting of the stockholders and, in
the case of a special meeting, the purpose of purposes for which the meeting
is called, shall be given not less than ten (10) days nor more than sixty
(60) days before the date of the meeting. (See also Articles IV and X).

       When a meeting is adjourned to another time or place, no notice of the
adjourned meeting other than an announcement at the meeting need be given
unless the adjournment is for more than thirty (30) days or a new record date
is fixed for the adjourned meeting after such adjournment.

       SECTION 2.5  STOCKHOLDER LIST. At least ten (10) days before every
meeting of stockholders, a complete list of the stockholders entitled to vote
at such meeting, arranged in alphabetical order, and showing the address of
each such stockholder and the number of shares registered in the name of each
such stockholder, shall be prepared by the Secretary. Such list shall be open
to examination of any stockholder of the Corporation during ordinary business
hours, for any purpose germane to the meeting, for a period of at least ten
(10) days prior to the meeting, at the office of the Corporation in Dallas,
Texas, and the list shall be produced and kept at the time and place of
meeting during the whole time thereof, and subject to the inspection for any
purpose germane to the meeting of any stockholder who may be present. Failure
to comply with any requirement of this Section 2.5 shall not affect the
validity of any action taken at such meeting.

       SECTION 2.6  QUORUM. The holders of capital stock of the Corporation
having a majority of the voting power thereof, present in person or
represented by proxy, shall be requisite for, and shall constitute, a quorum
at all meetings of the stockholders of the Corporation for the transaction of
business, except as otherwise provided by statute, the certificate of
incorporation or these by-laws. If, however, such quorum shall not be present
or represented at any meeting of the stockholders, the stockholders entitled
to vote thereat present in person or represented by proxy shall have power to
adjourn the meeting from time to time until a quorum shall be present or
represented. At such adjourned meeting at which a quorum shall be present or
represented, any business may be transacted which might have been transacted
at the meeting as originally notified.

       SECTION 2.7  PROXIES. At every meeting of the stockholders, each
stockholder having the right to vote thereat shall be entitled to vote in
person or by proxy. Such proxy shall be appointed by an instrument in writing
subscribed by such stockholder and bearing a date not more than three (3)
years prior to such meeting, unless such proxy provides for a longer period;
and it shall be filed with the Secretary of the Corporation before, or at the
time of, the meeting.

       SECTION 2.8  VOTING. Unless the certificate of incorporation provides
otherwise, at every meeting of stockholders, each stockholder shall be
entitled to one (1) vote for each share of stock of the Corporation entitled
to vote thereat and registered in the name of such stockholder on the books
of the Corporation on the pertinent record date. When a quorum is present at
any meeting of the stockholders, the vote of the holders of a majority of the
stock having voting

<PAGE>

power which is present in person or represented by proxy shall decide any
question brought before such meeting, unless the question is one upon which,
by provision of the statutes, the certificate of incorporation or these
by-laws, a different vote is required, in which case such provision shall
govern and control the decision of such question. If the certificate of
incorporation provides for more or less than one vote for any share on any
matter, every reference in these by-laws to a majority or other proportion of
stock shall refer to such majority or other proportion of the votes of such
stock.

       SECTION 2.9  VOTING OF CERTAIN SHARES. Shares standing in the name of
another corporation, domestic or foreign, and entitled to vote may be voted
by such officer, agent, or proxy as the by-laws of such corporation may
prescribe or, in the absence of such provision, as the board of directors of
such corporation may determine. Shares standing in the name of a deceased
person, a minor or an incompetent and entitled to vote may be voted by the
administrator, executor, guardian or conservator of such person, as the case
may be, either in person or by proxy. Shares standing in the name of a
trustee, receiver or pledgee and entitled to vote may be voted by such
trustee, receiver or pledgee either in person or by proxy as provided by the
Delaware General Corporation Law (the "Delaware Statute").

       SECTION 2.10 ACTION WITHOUT MEETING. Unless otherwise restricted by
the certificate of incorporation or these by-laws, whenever the vote of
stockholders at a meeting thereof is required or permitted to be taken for or
in connection with any corporate action, the meeting and vote of stockholders
may be dispensed with if a consent in writing, setting forth the action so
taken, shall be signed by the holders of outstanding stock having not less
than the minimum number of votes that would be necessary to authorize or take
such action at a meeting at which all shares entitled to vote thereon were
present and voted. Prompt notice of the taking of the corporate action
without a meeting by less than unanimous written consent shall be given to
those stockholders who have not consented thereto in writing. Such consent
shall be filed with the minutes of proceedings of the stockholders and shall
have the same force and effect as a unanimous vote of stockholders.

       SECTION 2.11 TREASURY STOCK. Shares of its own stock belonging to the
Corporation or to another corporation, if a majority of the shares entitled
to vote in the election of directors of such other corporation is held by
this Corporation, shall not be voted at any meeting and shall not be counted
in determining the total number of outstanding shares for the purpose of
determining whether a quorum is present. Nothing in this section shall be
construed to limit the right of this Corporation to vote shares of its own
stock held by it in a fiduciary capacity.

                                  ARTICLE III

                                   DIRECTORS

       SECTION 3.1  NUMBER AND ELECTION. The number of directors shall be
fixed at six (6), but may be increased or decreased from time to time by
resolution of the Board of Directors, provided, that at no time shall the
number of directors be less than one (1), and no decrease shall have the
effect of shortening the term of any incumbent director. Directors shall be
elected annually by the stockholders as provided in Section 2.1 or in
accordance with Section 3.2 of these by-laws, and the persons receiving the
greatest number of votes shall be the directors.

<PAGE>

Each director elected shall hold office until the successor of such director
is elected and qualified or until the death or resignation of such director
or until such director shall have been removed in the manner hereinafter
provided. Directors need not be residents of the State of Delaware or
stockholders of this Corporation.

       SECTION 3.2  RESIGNATIONS AND VACANCIES. Any director may resign at
any time by giving written notice to the Board of Directors or to the
Chairman of the Board. Any such resignation shall take effect at the date of
the receipt of such notice or at any later time specified therein; and,
unless otherwise specified therein, the acceptance of such resignation shall
not be necessary to make it effective. If, at any other time than the annual
meeting of the stockholders, any vacancy occurs in the Board of Directors
caused by resignation, death, retirement, disqualification or removal from
office of any director or otherwise, or any new directorship is created by an
increase in the authorized number of directors in accordance with Section 3.1
of these by-laws, a majority of the directors then in office, although less
than a quorum, may choose a successor, or fill the newly created
directorship, and the director so chosen shall hold office until the next
annual election of directors by the stockholders and until such director's
successor shall be duly elected and qualified, unless sooner displaced. No
decrease in the number of Directors constituting the Board of Directors shall
shorten the term of any incumbent director.

       SECTION 3.3  REMOVAL. Any or all of the directors may be removed,
either for or without cause, at any meeting of stockholders by the
affirmative vote, in person or by proxy, of the holders of a majority of the
shares then entitled to vote. The vacancy in the Board of Directors caused by
such removal may be filled by the stockholders at such meeting.

       SECTION 3.4  MANAGEMENT OF AFFAIRS OF CORPORATION. The property and
business of the Corporation shall be managed by its Board of Directors, which
may exercise all such powers of the Corporation and do all such lawful acts
and things as are not by statute or by the certificate of incorporation or by
these by-laws directed or required to be exercised or done by stockholders.
In case the Corporation shall transact any business or enter into any
contract with a director, or with any firm of which one or more of its
directors are members, or with any trust, firm, corporation or association in
which any director is a stockholder, director or officer or otherwise
interested, the officers of the Corporation and directors in question shall
be severally under the duty of disclosing all material facts as to their
interest to the remaining directors promptly if and when such interested
officers or such interested directors in question shall become advised of the
circumstances. In the case of continuing relationships in the normal course
of business such disclosure shall be deemed effective, when once given, as to
all transactions and contracts subsequently entered into.

       SECTION 3.5  DIVIDENDS AND RESERVES. Dividends upon stock of the
Corporation may be declared by the Board of Directors at any regular or
special meeting, pursuant to law. Dividends may be paid in cash, in property,
in shares of stock or otherwise in the form, and to the extent, permitted by
law. The Board of Directors may set apart, out of any funds of the
Corporation available for dividends, a reserve or reserves for working
capital or for any other lawful purpose, and also may abolish any such
reserve in the manner in which it was created.

       SECTION 3.6  REGULAR MEETINGS. An annual meeting of the Board of
Directors shall be held, without other notice than this by-law, immediately
after, and at the same place as, the

<PAGE>

annual meeting of the stockholders. The Board of Directors may provide, by
resolution, the time and place, either within or without the State of
Delaware, for the holding of additional regular meetings without other notice
than such resolution.

       SECTION 3.7  SPECIAL MEETINGS. Special meetings of the Board of
Directors may be called by the Chairman of the Board or the President and
shall be called by the Secretary at the request of any two directors, to be
held at such time and place, either within or without the State of Delaware,
as shall be designated by the call and specified in the notice of such
meeting; and notice thereof shall be given as provided in Section 3.8 of
these by-laws.

       SECTION 3.8  NOTICE OF SPECIAL MEETINGS. Except as otherwise
prescribed by the Delaware Statute, written or actual oral notice of the time
and place of each special meeting of the Board of Directors shall be given at
least two (2) days prior to the time of holding the meeting. Any director may
waive notice of any meeting. (See Also Articles IV and X.)

       SECTION 3.9  QUORUM. At each meeting of the Board of Directors, the
presence of not less than a majority of the whole board shall be necessary
and sufficient to constitute a quorum for the transaction of business, and
the act of a majority of the directors present at any meeting at which there
is a quorum shall be the act of the Board of Directors, except as may be
otherwise specifically provided by statute or these by-laws. If a quorum
shall not be present at any meeting of directors, the directors present
thereat may adjourn the meeting from time to time, without notice other than
announcement at the meeting, until a quorum shall be present.

       Unless otherwise restricted by the certificate of incorporation, any
member of the Board of Directors or of any committee designated by the Board
may participate in a meeting of the directors or committee by means of
conference telephone or similar communications equipment by means of which
all persons participating in the meeting can hear each other, and
participation in a meeting by means of such equipment shall constitute
presence in person at such meeting.

       SECTION 3.10  PRESUMPTION OF ASSENT. Unless otherwise provided by the
Delaware Statute, a director of the Corporation who is present at a meeting
of the Board of Directors at which action is taken on any corporate matter
shall be presumed to have assented to the action taken unless the dissent of
such director shall be entered in the minutes of the meeting or unless such
director shall file a written dissent to such action with the person acting
as Secretary of the meeting before the adjournment thereof or shall forward
such dissent by registered mail to the Secretary of the Corporation
immediately after the adjournment of the meeting. Such right to dissent shall
not apply to a director who voted in favor of such action.

       SECTION 3.11  ACTION WITHOUT MEETING. Unless otherwise restricted by
the certificate of incorporation or these by-laws, any action required or
permitted to be taken at any meeting of the Board of Directors, or of any
committee thereof, may be taken without a meeting, if a written consent
thereto is signed by all members of the board or of such committee, as the
case may be, and such written consent is filed with the minutes of
proceedings of the board or committee.

       SECTION 3.12  PRESIDING OFFICER. The presiding officer at any meeting
of the Board of Directors shall be the Chairman of the Board, or in the
absence of the Chairman of the Board, the President or, in the absence of
both the Chairman of the Board and the President, any other

<PAGE>

director elected acting chairman of the meeting by vote of a majority of the
directors present at the meeting.

       SECTION 3.13  EXECUTIVE COMMITTEE. The Board of Directors, as soon as
may be practicable after the annual meeting each year, may appoint an
Executive Committee to consist of the Chairman of the Board, the President
and such number of the directors as the Board may from time to time
determine. The Executive Committee shall have and may exercise, during the
intervals between meetings of the Board, all the powers of the board, subject
to such limitations as may be provided by resolution of the Board of
Directors or by law. The Board shall have the power at any time to change the
membership of such committee and to fill vacancies in it, but the Chairman of
the Board and the President shall always be members of the Executive
Committee by virtue of their offices. The Chairman of the Board shall be the
Chairman of the Executive Committee, and such committee shall make such rules
for the conduct of its business and appoint such committees and assistants as
it may deem necessary. A majority of the members of such committee shall
constitute a quorum.

       SECTION 3.14  OTHER COMMITTEES. The Board of Directors may appoint
such other committees in addition to the Executive Committee as it may from
time to time determine to be necessary or desirable. Each such committee
shall consist of one or such greater number of directors and shall have and
may exercise such powers of the Board as may be provided in the resolution of
the Board appointing such committee, subject to such limitations as may be
provided by law. The Board shall have the power at any time to change the
membership of any such committee, to fill vacancies in it and to change the
powers which the committee may exercise, subject to such limitations as may
be provided by law. The Board of Directors may specify a member of any such
committee to serve as the chairman thereof, and in the absence of such
specification by the Board, the committee may appoint one of its members as
its chairman. Each such committee shall make such rules for the conduct of
its business as it deems necessary. A majority of the members of any such
committee shall constitute a quorum.

       SECTION 3.15  ALTERNATES. The Board of Directors may from time to time
designate from among the directors alternates to serve on one or more
committees as occasion may require. Whenever a quorum cannot be secured for
any meeting of any committee from among the regular members thereof and
designated alternates, the member or members of such committee present at
such meeting and not disqualified from voting, whether or not such member or
members constitute a quorum, may unanimously appoint another member of the
Board of Directors to act at the meeting in place of such absent or
disqualified member.

       SECTION 3.16  QUORUM AND MANNER OF ACTING - COMMITTEES. The presence
of a majority of members of any committee shall constitute a quorum for the
transaction of business at any meeting of such committee, and the act of a
majority of those present shall be necessary for the taking of any action
thereat.

       SECTION 3.17  COMMITTEE BOOKS AND RECORDS, ETC. Each committee shall
keep a record of its acts and proceedings, and all actions of each committee
shall be reported to the Board of Directors at its next meeting.

<PAGE>

       Each committee shall fix its own rules of procedure not inconsistent
with these bylaws or the resolution of the Board of Directors designating
such committee and shall meet at such times and places and upon such call or
notice as shall be provided by such rules.

       SECTION 3.18  FEES AND COMPENSATION OF DIRECTORS. Directors shall not
receive any stated salary for their services as such; but, by resolution of
the Board of Directors, a fixed fee, with or without expenses of attendance,
may be allowed for attendance at each regular or special meeting of the
board. Members of the board shall be allowed their reasonable traveling
expenses when actually engaged in the business of the Corporation. Members of
any committee may be allowed like fees and expenses for attending committee
meetings. Nothing herein contained shall be construed to preclude any
director from serving the Corporation in any other capacity and receiving
compensation therefor.

       SECTION 3.19  RELIANCE UPON RECORDS. Every director of the
Corporation, or member of any committee designated by the Board of Directors
pursuant to authority conferred by these by-laws, shall, in the performance
of the duties of such director or member, be fully protected in relying in
good faith upon the books of account or reports made to the Corporation by
any of its officials, or by an independent certified public accountant, or by
an appraiser selected with reasonable care by the Board of Directors or by
such committee, or in relying in good faith upon other records of the
Corporation, including, without limiting the generality of the foregoing,
records setting forth or relating to the value and amount of assets,
liabilities and profits of the Corporation or any other facts pertinent to
the existence and amount of surplus or other funds from which dividends might
properly be declared or paid or with which stock of the Corporation might
lawfully be purchased or redeemed.

                                   ARTICLE IV

                                    NOTICES

       SECTION 4.1  MANNER OF NOTICE. Whenever under the provisions of the
statues, the certificate of incorporation or these by-laws notice is required
to be given to any stockholder, director or member of any committee
designated by the Board of Directors, it shall not be construed to require
personal delivery and such notice may be given in writing by depositing it,
in a sealed envelope, in the United States mails, air mail or first class,
postage prepaid, addressed (or by delivering it to a telegraph company,
charges prepaid, for transmission) to such stockholder, director or member
either at the address of such stockholder, director or member as it appears
on the books of the Corporation or, in the case of such a director or member,
at the business address of such director or member; and such notice shall be
deemed to be given at the time when it is thus deposited in the United States
mails (or delivered to the telegraph company). Such requirement for notice
shall be deemed satisfied, except in the case of stockholder meetings with
respect to which written notice is mandatorily required by law, if actual
notice is received orally or in writing by the person entitled thereto as far
in advance of the event with respect to which notice is given as the minimum
notice period required by law or these by-laws.

       SECTION 4.2  WAIVER OF NOTICE. Whenever any notice is required to be
given under the provisions of the statutes, the certificate of incorporation,
or these by-laws, a waiver thereof in writing signed by the person or persons
entitled to such notice, whether before, at or after the

<PAGE>

time stated therein, shall be deemed equivalent thereto. Attendance by a
person at a meeting shall constitute a waiver of notice of such meeting,
except when the person attends a meeting for the express purpose of
objecting, at the beginning of the meeting, to the transaction of any
business because the meeting is not lawfully called or convened. Neither the
business to be transacted at, nor the purpose of, any regular or special
meeting of the stockholders, directors or committee of directors need to be
specified in any written waiver of notice unless so required by statute, the
certificate of incorporation or these by-laws.

                                   ARTICLE V

                                    OFFICERS

       SECTION 5.1  OFFICES AND OFFICIAL POSITIONS. The officers of the
Corporation may be a Chairman of the Board, President, one or more Vice
Presidents, a Secretary, a Treasurer, a Controller and such Assistant
Secretaries, Assistant Treasurers, and other officers as the Board of
Directors shall determine. Any two or more offices may be held by the same
person. None of the officers need be a director, a stockholder of the
Corporation or a resident of the State of Delaware. The officers of the
Corporation shall have such powers and duties as usually pertain to their
offices, as well as such powers and duties as may from time to time be
conferred by the Board of Directors.

       SECTION 5.2  ELECTION AND TERM OF OFFICE. The officers of the
Corporation shall be elected annually by the Board of Directors at their
first meeting held after reach regular annual meeting of the stockholders. If
the election of officers shall not be held at such meeting of the board, such
election shall be held at a regular or special meeting of the Board of
Directors as soon thereafter as may be convenient. Each officer shall hold
office until the successor of such officer is elected and qualified or until
the death or resignation of such officer or until such officer shall have
been removed in the manner hereinafter provided.

       SECTION 5.3  REMOVAL AND RESIGNATION. Any officer may be removed,
either with or without cause, by a majority of the directors then in office
at any regular or special meeting of the board; but such removal shall be
without prejudice to the contract rights, if any, of such person so removed.
Any officer may resign at any time by giving written notice to the Board of
Directors, to the Chairman of the Board, to the President or to the Secretary
of the Corporation. Any such resignation shall take effect at the date of the
receipt of such notice or at any later time specified therein; and, unless
otherwise specified therein, the acceptance of such resignation shall not be
necessary to make it effective.

       SECTION 5.4  VACANCIES. A vacancy in any office because of death,
resignation, removal, or any other cause may be filled for the unexpired
portion of the term by the Board of Directors.

       SECTION 5.5  SALARIES. The salaries of the officers shall be fixed
from time to time by the Board of Directors or by such officer as it shall
designate for such purpose or as it shall otherwise direct. No officer shall
be prevented from receiving a salary or other compensation by reason of the
fact that such officer is also a director of the Corporation.

<PAGE>

                                   ARTICLE VI

                               CHECKS AND DEPOSITS

       SECTION 6.1  CHECKS; DRAFTS, ETC. All checks, demands, drafts or other
orders for the payment of money, notes or other evidences of indebtedness
issued in the name of the Corporation shall be signed by such officer or
officers, agent or agents of the Corporation, and in such manner, as shall
from time to time be authorized by the Board of Directors.

       SECTION 6.2  DEPOSITS. All funds of the Corporation not otherwise
employed shall be deposited from time to time to the credit of the
Corporation in such banks, trust companies or other depositories as the Board
of Directors may select.

                                  ARTICLE VII

                    CERTIFICATES OF STOCK AND THEIR TRANSFER

       SECTION 7.1  CERTIFICATES OF STOCK. The certificates of stock of the
Corporation shall be in such form as may be determined by the Board of
Directors, shall be numbered and shall be entered in the books of the
Corporation as they are issued. They shall exhibit the holder's name and
number of shares and shall be signed by the Chairman of the Board, the
President or a Vice President and by the Treasurer or an Assistant Treasurer
or the Secretary or an Assistant Secretary. If any stock certificate is
signed (a) by a transfer agent or an assistant transfer agent or (b) by a
transfer clerk acting on behalf of the Corporation and a registrar, the
signature of any officer of the Corporation may be facsimile. In case any
such officer whose facsimile signature has thus been used on any such
certificate shall cease to be such officer, whether because of death,
resignation or otherwise, before such certificate has been delivered by the
Corporation, such certificate may nevertheless be delivered by the
Corporation, as though the person whose facsimile signature has been used
thereon had not ceased to be such officer. All certificates properly
surrendered to the Corporation for transfer shall be cancelled and no new
certificate shall be issued to evidence transferred shares until the former
certificate for at least a like number of shares shall have been surrendered
and cancelled and the Corporation reimbursed for any applicable taxes on the
transfer, except that in the case of a lost, stolen, or destroyed certificate
a new one may be issued therefor upon such terms, and with such indemnity (if
any) to the Corporation, as the Board of Directors may prescribe specifically
or in general terms or by delegation to a transfer agent for the Corporation.
(See Section 7.2.)

       SECTION 7.2  LOST, STOLEN OR DESTROYED CERTIFICATES. The Board of
Directors in individual cases, or by general resolution or by delegation to
the transfer agent, may direct a new certificate or certificates to be issued
in place of any certificate or certificates theretofore issued by the
Corporation alleged to have been lost, stolen or destroyed, upon the making
of an affidavit of that fact by the person claiming the certificate of stock
to be lost, stolen or destroyed. When authorizing such issue of a new
certificate or certificates, the Board of Directors may, in its discretion
and as a condition precedent to the issuance thereof, require the owner of
such lost, stolen or destroyed certificates, or the legal representative of
such owner, to advertise the same in such manner as it shall require and/or
to give the Corporation a bond in such sum as it may direct

<PAGE>

as indemnity against any claim that may be made against the Corporation with
respect to the certificate alleged to have been lost, stolen or destroyed.

       SECTION 7.3  TRANSFERS OF STOCK. Upon surrender to the Corporation or
the transfer agent of the Corporation of a certificate for shares duly
endorsed or accompanied by proper evidence of succession, assignment or
authority to transfer, and upon payment of applicable taxes with respect to
such transfer, and in compliance with any restrictions on transfer applicable
to the certificate or shares represented thereby of which the Corporation
shall have notice and subject to such rules and regulations as the Board of
Directors may from time to time deem advisable concerning the transfer and
registration of certificates for shares of capital stock of the Corporation,
the Corporation shall issue a new certificate to the person entitled thereto,
cancel the old certificate and record the transaction upon its books.
Transfers of shares shall be made only on the books of the Corporation by the
registered holder thereof or by the attorney or successor of such holder duly
authorized as evidenced by documents filed with the Secretary or transfer
agent of the Corporation.

       SECTION 7.4  RESTRICTIONS ON TRANSFER. Any stockholder may enter into
an agreement with other stockholders or with the Corporation providing for
reasonable limitation or restriction on the right of such stockholder to
transfer shares of capital stock of the Corporation held by such stockholder,
including, without limiting the generality of the foregoing, agreements
granting to such other stockholders or to the Corporation the right to
purchase for a given period of time any of such shares. Any such limitation
or restriction on the transfer of shares of this Corporation may be set forth
on certificates representing shares of capital stock, in which case the
Corporation or the transfer agent shall not be required to transfer such
shares upon the books of the Corporation without receipt of satisfactory
evidence of compliance with the terms of such limitation or restriction.

       SECTION 7.5  FRACTIONAL SHARE CERTIFICATES.  Certificates may be
issued representing fractional shares of stock.

       SECTION 7.6  FIXING RECORD DATE. The Board of Directors may fix in
advance a date, not exceeding sixty (60) days, nor less than ten (10) days,
preceding the date of any meeting of stockholders, or the date for the
payment of any dividend, or the date for the allotment of rights, or the date
when any change or conversion or exchange of capital stock shall go into
effect, or a date in connection with obtaining any consent, as a record date
for the determination of the stockholders entitled to notice of, and to vote
at, any such meeting, or adjournment thereof, or entitled to receive payment
of any such dividend, or to any such allotment of rights, or to exercise the
rights in respect of any such change, conversion or exchange of capital
stock, or to give such consent, and in such case such stockholders and only
such stockholders as shall be stockholders of record on the date so fixed
shall be entitled to notice of, and to vote at, such meeting and any
adjournment thereof, or to receive payment of such dividend, or to receive
such allotment of rights, or to exercise such rights, or to give such
consent, as the case may be, notwithstanding any transfer of any stock on the
books of the Corporation after any such record date fixed as aforesaid.

       SECTION 7.7  STOCKHOLDERS OF RECORD. The Corporation shall be entitled
to treat the holder of record of any share or shares of stock as the holder
in fact thereof and accordingly,

<PAGE>

shall not be bound to recognize any equitable or other claim to or interest
in such share or shares on the part of any other person, whether or not it
shall have express or other notice thereof, except as otherwise provided by
the laws of Delaware.

                                  ARTICLE VIII

                          INDEMNIFICATION AND INSURANCE

       SECTION 8.1  RIGHT TO INDEMNIFICATION. Each person who was or is made
a party or is threatened to be made a party to or is involved in any action,
suit or proceeding, whether civil, criminal, administrative or investigative
(hereinafter a "proceeding"), by reason of the fact that he or she, or a
person of whom he or she is the legal representative, is or was a director or
officer of the Corporation or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another corporation
or of a partnership, joint venture, trust or other enterprise, including
service with respect to employee benefit plans, whether the basis of such
proceeding is alleged action in an official capacity as a director, officer,
employee or agent or in any other capacity while serving as a director,
officer, employee or agent, shall be indemnified and held harmless by the
Corporation to the fullest extent authorized by the Delaware General
Corporation Law, as the same exists or may hereafter be amended (but, in the
case of any such amendment, only to the extent that such amendment permits
the Corporation to provide broader indemnification rights than said law
permitted to the Corporation to provide prior to such amendment), against all
expense, liability and loss (including attorneys' fees, judgments, fines,
ERISA excise taxes or penalties and amounts paid or to be paid in settlement)
reasonably incurred or suffered by such person in connection therewith and
such indemnification shall continue as to a person who has ceased to be a
director, officer, employee or agent and shall inure to the benefit of his or
her heirs, executors and administrators; PROVIDED, HOWEVER, that, except as
provided in Section 8.2 hereof, the Corporation shall indemnify any such
person seeking indemnification in connection with a proceeding (or part
thereof) initiated by such person only if such proceeding (or part thereof)
was authorized by the Board of Directors of the Corporation. The right to
indemnification conferred in this Article VIII shall be a contract right and
shall include the right to be paid by the Corporation the expenses incurred
in defending any such proceeding in advance of its final disposition;
PROVIDED, HOWEVER, that, if the Delaware General Corporation Law requires,
the payment of such expenses incurred by a director or officer in his or her
capacity as a director or officer (and not in any other capacity in which
service was or is rendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in
advance of the final disposition of a proceeding, shall be made only upon
delivery to the Corporation of an undertaking, by or on behalf of such
director or officer, to repay all amounts so advanced if it shall ultimately
be determined that such director or officer is not entitled to be indemnified
under this Article VIII or otherwise. The Corporation may, by action of its
Board of Directors, provide indemnification to employees and agents of the
Corporation with the same scope and effect as the foregoing indemnification
of directors and officers.

       SECTION 8.2  RIGHT OF CLAIMANT TO BRING SUIT. If a claim under Section
8.1 of this Article VIII is not paid in full by the Corporation within thirty
days after a written claim has been received by the Corporation, the claimant
may at any time thereafter bring suit against the Corporation to recover the
unpaid amount of the claim and, if successful in whole or in part, the

<PAGE>

claimant shall be entitled to be paid also the expense of prosecuting such
claim. It shall be a defense to any such action (other than an action brought
to enforce a claim for expenses incurred in defending any proceeding in
advance of its final disposition where the required undertaking, if any is
required, has been tendered to the Corporation) that the claimant has not met
the standards of conduct which make it permissible under the Delaware General
Corporation Law for the Corporation to indemnify the claimant for the amount
claimed, but the burden of proving such defense shall be on the Corporation.
Neither the failure of the Corporation (including its Board of Directors,
independent legal counsel, or its stockholders) to have made a determination
prior to the commencement of such action that indemnification of the claimant
is proper in the circumstances because he or she has met the applicable
standard of conduct set forth in the Delaware General Corporation Law, nor an
actual determination by the Corporation (including its Board of Directors,
independent legal counsel, or its stockholders) that the claimant has not met
such applicable standard of conduct, shall be a defense to the action or
create a presumption that the claimant has not met the applicable standard of
conduct.

       SECTION 8.3  NON-EXCLUSIVITY OF RIGHTS. The right to indemnification
and the payment of expenses incured in defending a proceeding in advance of
its final disposition conferred in this Article VIII shall not be exclusive
of any other right which any person may have or hereafter acquire under any
statute, provision of the Certificate of Incorporation, by-law, agreement,
vote of stockholders or disinterested directors or otherwise.

       SECTION 8.4  INSURANCE. The Corporation may maintain insurance, at its
expense, to protect itself and any director, officer, employee or agent of
the Corporation or another corporation, partnership, joint venture, trust or
other enterprise against any such expense, liability or loss, whether or not
the Corporation would have the power to indemnify such person against such
expense, liability or loss under the Delaware General Corporation Law.

                                   ARTICLE IX

                               GENERAL PROVISIONS

       SECTION 9.1    FISCAL YEAR.  The fiscal year of the Corporation shall
be a calendar year.

       SECTION 9.2    SEAL. The corporate seal shall have inscribed thereon
the name of the Corporation and the words "CORPORATE SEAL" and "DELAWARE";
and it shall otherwise be in the form approved by the Board of Directors.
Such seal may be used by causing it, or a facsimile thereof, to be impressed
or affixed or otherwise reproduced.

                                   ARTICLE X

                                   AMENDMENTS

       SECTION 10.1  IN GENERAL. Subject to the laws of the State of
Delaware, the certificate of incorporation and these by-laws, the Board of
Directors may by the affirmative vote of a majority of the directors then
qualified and acting at any regular or special meeting of the board at which
a quorum is present amend these by-laws or enact such other by-laws as in
their judgment may be advisable for the regulation of the conduct of the
affairs of the Corporation.

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