March 20, 1997 Mr. Kennedy then stated that the resolutions adopted by the Board of Directors in September 1996, concerning the Board's Retainer Policy for Non-Employee Directors, provide for the issuance of stock certificates. However, New Jersey corporate law also permits the Company to issue noncertificated shares, which reduce costs and simplify record keeping. He therefore suggested that the aforesaid resolutions (including the implementing By-Law amendments) concerning this matter should be amended to permit the use of noncertificated shares. Thereupon, upon motion duly made by Mr. Mann, and seconded by Mr. Kahl, the following resolutions were unanimously adopted: RESOLVED: That the shares issued pursuant to the Board's -------- Retainer Policy for Non-Employee Directors may be noncertificated shares, if the affected directors so prefer, in which case the legend thereon (as required by a resolution adopted by this Board in September, 1996) shall be reflected in the written notices required by law to be issued in lieu of such certificates; and it is FURTHER RESOLVED: That, effective January 1, 1997, Article II, ---------------- Paragraph 9A of the By-Laws of the Company be amended to read as follows: A. Except with respect to directors whose service as such ceases on or before February 20, 1997, who will continue to receive the previously-effective Director compensation until such time, each Director who is not a regular full-time employee of the Corporation or one or more of its subsidiaries, shall be paid an annual fee of $12,000 in cash and 400 shares of the common stock of the Corporation, payable in equal quarterly increments, in advance (i.e., as of the first business day of the quarter). There will be proration of payments during quarters in which such Director has only partial service. Each such share of stock of the Corporation will be nontransferable until the later of two years from its issuance or six months after such Director's cessation of service.