EXHIBIT 3.1

                              (As amended and restated through October 20, 1998)

                              ELI LILLY AND COMPANY
                            (AN INDIANA CORPORATION)

                        AMENDED ARTICLES OF INCORPORATION

         1.       The name of the Corporation shall be

                             ELI LILLY AND COMPANY.

         2.       The purposes for which the Corporation is formed are to engage
in any lawful act or activity for which a corporation may be organized under the
Indiana Business Corporation Law.

         3.       The period during which the Corporation is to continue as a
corporation is perpetual.

         4.       The total number of shares which the Corporation shall have
authority to issue is 3,205,000,000 shares, consisting of 3,200,000,000 shares
of Common Stock and 5,000,000 shares of Preferred Stock. The Corporation's
shares do not have any par or stated value, except that, solely for the purpose
of any statute or regulation imposing any tax or fee based upon the
capitalization of the Corporation, each of the Corporation's shares shall be
deemed to have a par value of $0.01 per share.

         5.       The following provisions shall apply to the Corporation's
shares:

                  (a)      The Corporation shall have the power to acquire (by
         purchase, redemption, or otherwise), hold, own, pledge, sell, transfer,
         assign, reissue, cancel, or otherwise dispose of the shares of the
         Corporation in the manner and to the extent now or hereafter permitted
         by the laws of the State of Indiana (but such power shall not imply an
         obligation on the part of the owner or holder of any share to sell or
         otherwise transfer such share to the Corporation), including the power
         to purchase, redeem, or otherwise acquire the Corporation's own shares,
         directly or indirectly, and without pro rata treatment of the owners or
         holders of any class or series of shares, unless, after giving effect
         thereto, the Corporation would not be able to pay its debts as they
         become due in the usual course of business or the Corporation's total
         assets would be less than its total liabilities (and without regard to
         any amounts that would be needed, if the Corporation were to be
         dissolved at the time of the purchase, redemption, or other
         acquisition, to satisfy the preferential rights upon dissolution of
         shareholders whose preferential rights are superior to those of the
         holders of the shares of the Corporation being purchased, redeemed, or
         otherwise acquired, unless otherwise expressly provided with respect to
         a series of Preferred Stock). Shares of the Corporation purchased,
         redeemed, or otherwise acquired by it



         shall constitute authorized but unissued shares, unless prior to any
         such purchase, redemption, or other acquisition, or within thirty (30)
         days thereafter, the Board of Directors adopts a resolution providing
         that such shares constitute authorized and issued but not outstanding
         shares.

                  (b)      Preferred Stock of any series that has been redeemed
         (whether through the operation of a retirement or sinking fund or
         otherwise) or purchased by the Corporation, or which, if convertible,
         have been converted into shares of the Corporation of any other class
         or series, may be reissued as a part of such series or of any other
         series of Preferred Stock, subject to such limitations (if any) as may
         be fixed by the Board of Directors with respect to such series of
         Preferred Stock in accordance with the provisions of Article 7 of these
         Amended Articles of Incorporation.

                  (c)      The Board of Directors of the Corporation may dispose
         of, issue, and sell shares in accordance with, and in such amounts as
         may be permitted by, the laws of the State of Indiana and the
         provisions of these Amended Articles of Incorporation and for such
         consideration, at such price or prices, at such time or times and upon
         such terms and conditions (including the privilege of selectively
         repurchasing the same) as the Board of Directors of the Corporation
         shall determine, without the authorization or approval by any
         shareholders of the Corporation. Shares may be disposed of, issued, and
         sold to such persons, firms, or corporations as the Board of Directors
         may determine, without any preemptive or other right on the part of the
         owners or holders of other shares of the Corporation of any class or
         kind to acquire such shares by reason of their ownership of such other
         shares.

         6.       The following provisions shall apply to the Common Stock:

                  (a)      Except as otherwise provided by the Indiana Business
         Corporation Law and subject to such shareholder disclosure and
         recognition procedures (which may include voting prohibition sanctions)
         as the Corporation may by action of its Board of Directors establish,
         shares of Common Stock shall have unlimited voting rights and each
         outstanding share of Common Stock shall, when validly issued by the
         Corporation, entitle the record holder thereof to one vote at all
         shareholders' meetings on all matters submitted to a vote of the
         shareholders of the Corporation.

                  (b)      Shares of Common Stock shall be equal in every
         respect insofar as their relationship to the Corporation is concerned,
         but such equality of rights shall not imply equality of treatment as to
         redemption or other acquisition of shares by the Corporation. Subject
         to the rights of the holders of any outstanding series of Preferred
         Stock, the holders of Common Stock shall be entitled to share ratably
         in such dividends or other distributions (other than purchases,
         redemptions, or other acquisitions of shares by the Corporation), if
         any, as are declared and paid from time to time on the Common Stock at
         the discretion of the Board of Directors.

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                  (c)      In the event of any liquidation, dissolution, or
         winding up of the Corporation, either voluntary or involuntary, after
         payment shall have been made to the holders of any outstanding series
         of Preferred Stock of the full amount to which they shall be entitled,
         the holders of Common Stock shall be entitled, to the exclusion of the
         holders of the Preferred Stock of any and all series, to share, ratably
         according to the number of shares of Common Stock held by them, in all
         remaining assets of the Corporation available for distribution to its
         shareholders.

         7.       The Board of Directors is hereby expressly authorized to
provide, out of the unissued shares of Preferred Stock, for one or more series
of Preferred Stock. Before any shares of any such series are issued, the Board
of Directors shall fix, and hereby is expressly empowered to fix, by the
adoption and filing in accordance with the Indiana Business Corporation Law, of
an amendment or amendments to these Amended Articles of Incorporation, the terms
of such Preferred Stock or series of Preferred Stock, including the following:

                  (a)      the designation of such series, the number of shares
         to constitute such series and the stated value thereof if different
         from the par value thereof;

                  (b)      whether the shares of such series shall have voting
         rights, in addition to any voting rights provided by law, and, if so,
         the terms of such voting rights, which may be general or limited and
         may include the right, under specified circumstances, to elect
         additional directors;

                  (c)      the dividends, if any, payable on such series,
         whether any such dividends shall be cumulative, and, if so, from what
         dates, the conditions and dates upon which such dividends shall be
         payable, the preference or relation which such dividends shall bear to
         the dividends payable on any shares of stock of any other class or any
         other series of Preferred Stock;

                  (d)      whether the shares of such series shall be subject to
         redemption by the Corporation and, if so, the times, prices and other
         conditions of such redemption;

                  (e)      the amount or amounts payable upon shares of such
         series upon, and the rights of the holders of such series in, the
         voluntary or involuntary liquidation, dissolution or winding up, or
         upon any distribution of the assets, of the Corporation;

                  (f)      whether the shares of such series shall be subject to
         the operation of a retirement or sinking fund and, if so, the extent to
         and manner in which any such retirement or sinking fund shall be
         applied to the purchase or redemption of the shares of such series for
         retirement or other corporate purposes and the terms and provisions
         relative to the operation thereof;

                  (g)      whether the shares of such series shall be
         convertible into, or exchangeable for, shares of stock of any other
         class or any other series of Preferred Stock or any other securities
         (whether or not issued by the

                                       -3-



         Corporation) and, if so, the price or prices or the rate or rates of
         conversion or exchange and the method, if any, of adjusting the same,
         and any other terms and conditions of conversion or exchange;

                  (h)      the limitations and restrictions, if any, to be
         effective while any shares of such series are outstanding upon the
         payment of dividends or the making of other distributions on, and upon
         the purchase, redemption or other acquisition by the Corporation of,
         the Common Stock or shares of stock of any other class or any other
         series of Preferred Stock;

                  (i)      the conditions or restrictions, if any, upon the
         creation of indebtedness of the Corporation or upon the issue of any
         additional stock, including additional shares of such series or of any
         other series of Preferred Stock or of any other class of stock; and

                  (j)      any other powers, preferences and relative,
         participating, optional and other special rights, and any
         qualifications, limitations and restrictions thereof.

Except to the extent otherwise expressly provided in these Amended Articles of
Incorporation or required by law (i) no share of Preferred Stock shall have any
voting rights other than those which shall be fixed by the Board of Directors
pursuant to this Article 7 and (ii) no share of Common Stock shall have any
voting rights with respect to any amendment to the terms of any series of
Preferred Stock; provided however, that in the case of this clause (ii) the
terms of such series of Preferred Stock, as so amended, could have been
established without any vote of any shares of Common Stock.

         8.       The Corporation shall have the power to declare and pay
dividends or other distributions upon the issued and outstanding shares of the
Corporation, subject to the limitation that a dividend or other distribution may
not be made if, after giving it effect, the Corporation would not be able to pay
its debts as they become due in the usual course of business or the
Corporation's total assets would be less than its total liabilities (and without
regard to any amounts that would be needed, if the Corporation were to be
dissolved at the time of the dividend or other distribution, to satisfy the
preferential rights upon dissolution of shareholders whose preferential rights
are superior to those of the holders of shares receiving the dividend or other
distribution, unless otherwise expressly provided with respect to any
outstanding series of Preferred Stock). The Corporation shall have the power to
issue shares of one class or series as a share dividend or other distribution in
respect of that class or series or one or more other classes or series.

         9.       The following provisions are inserted for the management of
the business and for the conduct of the affairs of the Corporation, and it is
expressly provided that the same are intended to be in furtherance and not in
limitation or exclusion of the powers conferred by statute:

                  (a)      The number of directors of the Corporation, exclusive
         of directors who may be elected by the holders of any one or more
         series of Preferred Stock

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         pursuant to Article 7(b) (the "Preferred Stock Directors"), shall not
         be less than nine, the exact number to be fixed from time to time
         solely by resolution of the Board of Directors, acting by not less than
         a majority of the directors then in office.

                  (b)      The Board of Directors (exclusive of Preferred Stock
         Directors) shall be divided into three classes, with the term of office
         of one class expiring each year. At the annual meeting of shareholders
         in 1985, five directors of the first class shall be elected to hold
         office for a term expiring at the 1986 annual meeting, five directors
         of the second class shall be elected to hold office for a term expiring
         at the 1987 annual meeting, and six directors of the third class shall
         be elected to hold office for a term expiring at the 1988 annual
         meeting. Commencing with the annual meeting of shareholders in 1986,
         each class of directors whose term shall then expire shall be elected
         to hold office for a three-year term. In the case of any vacancy on the
         Board of Directors, including a vacancy created by an increase in the
         number of directors, the vacancy shall be filled by election of the
         Board of Directors with the director so elected to serve for the
         remainder of the term of the director being replaced or, in the case of
         an additional director, for the remainder of the term of the class to
         which the director has been assigned. All directors shall continue in
         office until the election and qualification of their respective
         successors in office. When the number of directors is changed, any
         newly created directorships or any decrease in directorships shall be
         so assigned among the classes by a majority of the directors then in
         office, though less than a quorum, as to make all classes as nearly
         equal in number as possible. No decrease in the number of directors
         shall have the effect of shortening the term of any incumbent director.
         Election of directors need not be by written ballot unless the By-laws
         so provide.

                  (c)      Any director or directors (exclusive of Preferred
         Stock Directors) may be removed from office at any time, but only for
         cause and only by the affirmative vote of at least 80% of the votes
         entitled to be cast by holders of all the outstanding shares of Voting
         Stock (as defined in Article 13 hereof), voting together as a single
         class.

                  (d)      Notwithstanding any other provision of these Amended
         Articles of Incorporation or of law which might otherwise permit a
         lesser vote or no vote, but in addition to any affirmative vote of the
         holders of any particular class of Voting Stock required by law or
         these Amended Articles of Incorporation, the affirmative vote of at
         least 80% of the votes entitled to be cast by holders of all the
         outstanding shares of Voting Stock, voting together as a single class,
         shall be required to alter, amend or repeal this Article 9.

         10.      The Board of Directors of the Corporation is exclusively
authorized (a) to adopt, repeal, alter or amend the By-laws of the Corporation
by the vote of a majority of the entire Board of Directors and (b) to adopt any
By-laws which the Board of Directors may deem necessary or desirable for the
efficient conduct of the affairs of the Corporation, including, without
limitation, provisions governing the conduct of, and the matters which may
properly be brought before, meetings of the shareholders and

                                       -5-



provisions specifying the manner and extent to which prior notice shall be given
of the submission of proposals to be submitted at any meeting of shareholders or
of nominations of elections of directors to be held at any such meeting.

         11.      The Corporation shall, to the fullest extent permitted by
applicable law now or hereafter in effect, indemnify any person who is or was a
director, officer or employee of the Corporation (an "Eligible Person") and who
is or was involved in any manner (including, without limitation, as a party or a
witness) or is threatened to be made so involved in any threatened, pending or
completed investigation, claim, action, suit or proceeding, whether civil,
criminal, administrative or investigative (including, without limitation, any
action, suit or proceeding by or in the right of the Corporation to procure a
judgment in its favor) (a "Proceeding") by reason of the fact that such person
is or was a director, officer or employee of the Corporation or is or was
serving at the request of the Corporation as a director, officer, employee,
partner, member, manager, trustee, fiduciary or agent of another corporation,
partnership, joint venture, limited liability company, trust or other enterprise
(including, without limitation, any employee benefit plan), against all expenses
(including attorneys' fees), judgments, fines or penalties (including excise
taxes assessed with respect to an employee benefit plan) and amounts paid in
settlement actually and reasonably incurred by such Eligible Person in
connection with such Proceeding; provided, however, that the foregoing shall not
apply to a Proceeding commenced by an Eligible Person except to the extent
provided otherwise in the Corporation's By-laws or an agreement with an Eligible
Person. The Corporation may establish provisions supplemental to or in
furtherance of the provisions of this Article 11, including, but not limited to,
provisions concerning the determination of any Eligible Person to
indemnification, mandatory or permissive advancement of expenses to an Eligible
Person incurred in connection with a Proceeding, the effect of any change in
control of the Corporation on indemnification and advancement of expenses and
the funding or other payment of amounts necessary to effect indemnification and
advancement of expenses, in the By-laws of the Corporation or in agreements with
any Eligible Person.

         12.      Except as otherwise expressly provided for in these Amended
Articles of Incorporation, the Corporation reserves the right to amend, alter or
repeal any provision contained in these Amended Articles of Incorporation, in
the manner now or hereafter prescribed by law, and all rights conferred upon
shareholders herein are subject to this reservation.

         13.      In addition to all other requirements imposed by law and these
Amended Articles and except as otherwise expressly provided in paragraph (c) of
this Article 13, none of the actions or transactions listed below shall be
effected by the Corporation, or approved by the Corporation as a shareholder of
any majority-owned subsidiary of the Corporation if, as of the record date for
the determination of the shareholders entitled to vote thereon, any Related
Person (as hereinafter defined) exists, unless the applicable requirements of
paragraphs (b), (c), (d), (e), and (f) of this Article 13 are satisfied.

                  (a)      The actions or transactions within the scope of this
         Article 13 are as follows:

                                       -6-



                           (i) any merger or consolidation of the Corporation or
                  any of its subsidiaries into or with such Related Person;

                           (ii) any sale, lease, exchange, or other disposition
                  of all or any substantial part of the assets of the
                  Corporation or any of its majority-owned subsidiaries to or
                  with such Related Person;

                           (iii) the issuance or delivery of any Voting Stock
                  (as hereinafter defined) or of voting securities of any of the
                  Corporation's majority-owned subsidiaries to such Related
                  Person in exchange for cash, other assets or securities, or a
                  combination thereof;

                           (iv) any voluntary dissolution or liquidation of the
                  Corporation;

                           (v) any reclassification of securities (including any
                  reverse stock split), or recapitalization of the Corporation,
                  or any merger or consolidation of the Corporation with any of
                  its subsidiaries, or any other transaction (whether or not
                  with or otherwise involving a Related Person) that has the
                  effect, directly or indirectly, of increasing the
                  proportionate share of any class or series of capital stock of
                  the Corporation, or any securities convertible into capital
                  stock of the Corporation or into equity securities of any
                  subsidiary, that is beneficially owned by any Related Person;
                  or

                           (vi) any agreement, contract, or other arrangement
                  providing for any one or more of the actions specified in the
                  foregoing clauses (i) through (v).

                  (b)      The actions and transactions described in paragraph
         (a) of this Article 13 shall have been authorized by the affirmative
         vote of at least 80% of all of the votes entitled to be cast by holders
         of the outstanding shares of Voting Stock, voting together as a single
         class.

                  (c)      Notwithstanding paragraph (b) of this Article 13, the
         80% voting requirement shall not be applicable if any action or
         transaction specified in paragraph (a) is approved by the Corporation's
         Board of Directors and by a majority of the Continuing Directors (as
         hereinafter defined).

                  (d)      Unless approved by a majority of the Continuing
         Directors, after becoming a Related Person and prior to consummation of
         such action or transaction.

                           (i) the Related Person shall not have acquired from
                  the Corporation or any of its subsidiaries any newly issued or
                  treasury shares of capital stock or any newly issued
                  securities convertible into capital stock of the Corporation
                  or any of its majority-owned subsidiaries, directly or
                  indirectly (except upon conversion of convertible securities
                  acquired by it prior to becoming a Related Person or as a
                  result of a pro rata stock

                                       -7-



                  dividend or stock split or other distribution of stock to all
                  shareholders pro rata);

                           (ii) such Related Person shall not have received the
                  benefit directly or indirectly (except proportionately as a
                  shareholder) of any loans, advances, guarantees, pledges, or
                  other financial assistance or tax credits provided by the
                  Corporation or any of its majority-owned subsidiaries, or made
                  any major changes in the Corporation's or any of its
                  majority-owned subsidiaries' businesses or capital structures
                  or reduced the current rate of dividends payable on the
                  Corporation's capital stock below the rate in effect
                  immediately prior to the time such Related Person became a
                  Related Person; and

                           (iii) such Related Person shall have taken all
                  required actions within its power to ensure that the
                  Corporation's Board of Directors included representation by
                  Continuing Directors at least proportionate to the voting
                  power of the shareholdings of Voting Stock of the
                  Corporation's Remaining Public Shareholders (as hereinafter
                  defined), with a Continuing Director to occupy an additional
                  Board position if a fractional right to a director results
                  and, in any event, with at least one Continuing Director to
                  serve on the Board so long as there are any Remaining Public
                  Shareholders.

                  (e)      A proxy statement responsive to the requirements of
         the Securities Exchange Act of 1934, as amended, whether or not the
         Corporation is then subject to such requirements, shall be mailed to
         the shareholders of the Corporation for the purpose of soliciting
         shareholder approval of such action or transaction and shall contain at
         the front thereof, in a prominent place, any recommendations as to the
         advisability or inadvisability of the action or transaction which the
         Continuing Directors may choose to state and, if deemed advisable by a
         majority of the Continuing Directors, the opinion of an investment
         banking firm selected by a majority of the Continuing Directors as to
         the fairness (or not) of the terms of the action or transaction from a
         financial point of view to the Remaining Public Shareholders, such
         investment banking firm to be paid a reasonable fee for its services by
         the Corporation. The requirements of this paragraph (e) shall not apply
         to any such action or transaction which is approved by a majority of
         the Continuing Directors.

                  (f)      For the purpose of this Article 13

                           (i) the term "Related Person" shall mean any other
                  corporation, person, or entity which beneficially owns or
                  controls, directly or indirectly, 5% or more of the
                  outstanding shares of Voting Stock, and any Affiliate or
                  Associate (as those terms are defined in the General Rules and
                  Regulations under the Securities Exchange Act of 1934) of a
                  Related Person; provided, however, that the term Related
                  Person shall not include (a) the Corporation or any of its
                  subsidiaries, (b) any profit-sharing,

                                       -8-



                  employee stock ownership or other employee benefit plan of the
                  Corporation or any subsidiary of the Corporation or any
                  trustee of or fiduciary with respect to any such plan when
                  acting in such capacity, or (c) Lilly Endowment, Inc.; and
                  further provided, that no corporation, person, or entity shall
                  be deemed to be a Related Person solely by reason of being an
                  Affiliate or Associate of Lilly Endowment, Inc.;

                           (ii) a Related Person shall be deemed to own or
                  control, directly or indirectly, any outstanding shares of
                  Voting Stock owned by it or any Affiliate or Associate of
                  record or beneficially, including without limitation shares

                                    a. which it has the right to acquire
                           pursuant to any agreement, or upon exercise of
                           conversion rights, warrants, or options, or otherwise
                           or

                                    b. which are beneficially owned, directly or
                           indirectly (including shares deemed owned through
                           application of clause a. above), by any other
                           corporation, person, or other entity with which it or
                           its Affiliate or Associate has any agreement,
                           arrangement, or understanding for the purpose of
                           acquiring, holding, voting, or disposing of Voting
                           Stock, or which is its Affiliate (other than the
                           Corporation) or Associate (other than the
                           Corporation);

                           (iii) the term "Voting Stock" shall mean all shares
                  of any class of capital stock of the Corporation which are
                  entitled to vote generally in the election of directors;

                           (iv) the term "Continuing Director" shall mean a
                  director who is not an Affiliate or Associate or
                  representative of a Related Person and who was a member of the
                  Board of Directors of the Corporation immediately prior to the
                  time that any Related Person involved in the proposed action
                  or transaction became a Related Person or a director who is
                  not an Affiliate or Associate or representative of a Related
                  Person and who was nominated by a majority of the remaining
                  Continuing Directors; and

                           (v) the term "Remaining Public Shareholders" shall
                  mean the holders of the Corporation's capital stock other than
                  the Related Person.

                  (g)      A majority of the Continuing Directors of the
         Corporation shall have the power and duty to determine for the purposes
         of this Article 13, on the basis of information then known to the
         Continuing Directors, whether (i) any Related Person exists or is an
         Affiliate or an Associate of another and (ii) any proposed sale, lease,
         exchange, or other disposition of part of the assets of the Corporation
         or any majority-owned subsidiary involves a substantial part of the
         assets of the Corporation or any of its subsidiaries. Any such
         determination by the Continuing Directors shall be conclusive and
         binding for all purposes.

                                       -9-



                  (h)      Nothing contained in this Article 13 shall be
         construed to relieve any Related Person or any Affiliate or Associate
         of any Related Person from any fiduciary obligation imposed by law.

                  (i)      The fact that any action or transaction complies with
         the provisions of this Article 13 shall not be construed to waive or
         satisfy any other requirement of law or these Amended Articles of
         Incorporation or to impose any fiduciary duty, obligation, or
         responsibility on the Board of Directors or any member thereof, to
         approve such action or transaction or recommend its adoption or
         approval to the shareholders of the Corporation, nor shall such
         compliance limit, prohibit, or otherwise restrict in any manner the
         Board of Directors, or any member thereof, with respect to evaluations
         of or actions and responses taken with respect to such action or
         transaction. The Board of Directors of the Corporation, when evaluating
         any actions or transactions described in paragraph (a) of this Article
         13, shall, in connection with the exercise of its judgment in
         determining what is in the best interests of the Corporation and its
         shareholders, give due consideration to all relevant factors, including
         without limitation the social and economic effects on the employees,
         customers, suppliers, and other constituents of the Corporation and its
         subsidiaries and on the communities in which the Corporation and its
         subsidiaries operate or are located.

                  (j)      Notwithstanding any other provision of these Amended
         Articles of Incorporation or of law which might otherwise permit a
         lesser vote or no vote, but in addition to any affirmative vote of the
         holders of any particular class of Voting Stock required by law or
         these Amended Articles of Incorporation, the affirmative vote of the
         holders of at least 80% of the votes entitled to be cast by holders of
         all the outstanding shares of Voting Stock, voting together as a single
         class, shall be required to alter, amend, or repeal this Article 13.

         14.      A total of 1,500,000 shares of the 5,000,000 shares of
authorized Preferred Stock are designated as "Series B Junior Participating
Preferred Stock" (the "Series B Preferred Stock"). Such number of shares may be
increased or decreased by resolution of the Board of Directors; provided that no
decrease shall reduce the number of shares of Series B Preferred Stock to a
number less than the number of shares then outstanding plus the number of shares
reserved for issuance upon the exercise of outstanding options, rights or
warrants or upon the conversion of any outstanding securities issued by the
Corporation convertible into Series B Preferred Stock. The Series B Preferred
Stock shall possess the rights, preferences, qualifications, limitations, and
restrictions set forth below:

                  (a)      The holders of shares of Series B Preferred Stock
         shall have the following rights to dividends and distributions:

                           (i)      Subject to the rights of the holders of any
                  shares of any series of Preferred Stock (or any similar stock)
                  ranking prior and superior to the Series B Preferred Stock
                  with respect to dividends, the holders of shares of Series B
                  Preferred Stock, in preference to the holders of Common Stock,
                  without par value (the "Common Stock"), of the

                                      -10-



                  Corporation, and of any other junior stock, shall be entitled
                  to receive, when, as and if declared by the Board of Directors
                  out of funds legally available for the purpose, quarterly
                  dividends payable in cash on the tenth day of March, June,
                  September and December in each year (each such date being
                  referred to herein as a "Quarterly Dividend Payment Date"),
                  commencing on the first Quarterly Dividend Payment Date after
                  the first issuance of a share or fraction of a share of Series
                  B Preferred Stock, in an amount per share (rounded to the
                  nearest cent) equal to the greater of (a) $10 or (b) subject
                  to the provision for adjustment hereinafter set forth, 1,000
                  times the aggregate per share amount of all cash dividends,
                  and 1,000 times the aggregate per share amount (payable in
                  kind) of all non- cash dividends or other distributions, other
                  than a dividend payable in shares of Common Stock or a
                  subdivision of the outstanding shares of Common Stock (by
                  reclassification or otherwise), declared on the Common Stock
                  since the immediately preceding Quarterly Dividend Payment
                  Date or, with respect to the first Quarterly Dividend Payment
                  Date, since the first issuance of any share or fraction of a
                  share of Series B Preferred Stock. In the event the
                  Corporation shall at any time declare or pay any dividend on
                  the Common Stock payable in shares of Common Stock, or effect
                  a subdivision or combination or consolidation of the
                  outstanding shares of Common Stock (by reclassification or
                  otherwise than by payment of a dividend in shares of Common
                  Stock) into a greater or lesser number of shares of Common
                  Stock, then in each such case the amount to which holders of
                  shares of Series B Preferred Stock were entitled immediately
                  prior to such event under clause (b) of the preceding sentence
                  shall be adjusted by multiplying such amount by a fraction,
                  the numerator of which is the number of shares of Common Stock
                  outstanding immediately after such event and the denominator
                  of which is the number of shares of Common Stock that were
                  outstanding immediately prior to such event.

                           (ii)     The Corporation shall declare a dividend or
                  distribution on the Series B Preferred Stock as provided in
                  paragraph (A) of this Section immediately after it declares a
                  dividend or distribution on the Common Stock (other than a
                  dividend payable in shares of Common Stock); provided that, in
                  the event no dividend or distribution shall have been declared
                  on the Common Stock during the period between any Quarterly
                  Dividend Payment Date and the next subsequent Quarterly
                  Dividend Payment Date, a dividend of $10 per share on the
                  Series B Preferred Stock shall nevertheless be payable on such
                  subsequent Quarterly Dividend Payment Date.

                           (iii)    Dividends shall begin to accrue and be
                  cumulative on outstanding shares of Series B Preferred Stock
                  from the Quarterly Dividend Payment Date next preceding the
                  date of issue of such shares, unless the date of issue of such
                  shares is prior to the record date for the first Quarterly
                  Dividend Payment Date, in which case dividends on such shares
                  shall begin to accrue from the date of issue of such shares,
                  or

                                      -11-



                  unless the date of issue is a Quarterly Dividend Payment Date
                  or is a date after the record date for the determination of
                  holders of shares of Series B Preferred Stock entitled to
                  receive a quarterly dividend and before such Quarterly
                  Dividend Payment Date, in either of which events such
                  dividends shall begin to accrue and be cumulative from such
                  Quarterly Dividend Payment Date. Accrued but unpaid dividends
                  shall not bear interest. Dividends paid on the shares of
                  Series B Preferred Stock in an amount less than the total
                  amount of such dividends at the time accrued and payable on
                  such shares shall be allocated pro rata on a share-by-share
                  basis among all such shares at the time outstanding. The Board
                  of Directors may fix a record date for the determination of
                  holders of shares of Series B Preferred Stock entitled to
                  receive payment of a dividend or distribution declared
                  thereon, which record date shall be not more than 60 days
                  prior to the date fixed for the payment thereof.

                  (b)      The holders of shares of Series B Preferred Stock
         shall have the following voting rights:

                           (i)      Subject to the provision for adjustment
                  hereinafter set forth, each share of Series B Preferred Stock
                  shall entitle the holder thereof to 1000 votes on all matters
                  submitted to a vote of the stockholders of the Corporation. In
                  the event the Corporation shall at any time declare or pay any
                  dividend on the Common Stock payable in shares of Common
                  Stock, or effect a subdivision or combination or consolidation
                  of the outstanding shares of Common Stock (by reclassification
                  or otherwise than by payment of a dividend in shares of Common
                  Stock) into a greater or lesser number of shares of Common
                  Stock, then in each such case the number of votes per share to
                  which holders of shares of Series B Preferred Stock were
                  entitled immediately prior to such event shall be adjusted by
                  multiplying such number by a fraction, the numerator of which
                  is the number of shares of Common Stock outstanding
                  immediately after such event and the denominator of which is
                  the number of shares of Common Stock that were outstanding
                  immediately prior to such event.

                           (ii)     Except as otherwise provided herein, in any
                  other Articles of Amendment creating a series of Preferred
                  Stock or any similar stock, or by law, the holders of shares
                  of Series B Preferred Stock and the holders of shares of
                  Common Stock and any other capital stock of the Corporation
                  having general voting rights shall vote together as one class
                  on all matters submitted to a vote of stockholders of the
                  Corporation.

                           (iii)    Except as set forth herein, or as otherwise
                  provided by law, holders of Series B Preferred Stock shall
                  have no special voting rights and their consent shall not be
                  required (except to the extent they are entitled to vote with
                  holders of Common Stock as set forth herein) for taking any
                  corporate action.

                  (c)      The Corporation shall be subject to the following
         restrictions:

                                      -12-



                           (i)      Whenever quarterly dividends or other
                  dividends or distributions payable on the Series B Preferred
                  Stock as provided in Section 2 are in arrears, thereafter and
                  until all accrued and unpaid dividends and distributions,
                  whether or not declared, on shares of Series B Preferred Stock
                  outstanding shall have been paid in full, the Corporation
                  shall not:

                                    a.       declare or pay dividends, or make
                           any other distributions, on any shares of stock
                           ranking junior (either as to dividends or upon
                           liquidation, dissolution or winding up) to the Series
                           B Preferred Stock;

                                    b.       declare or pay dividends, or make
                           any other distributions, on any shares of stock
                           ranking on a parity (either as to dividends or upon
                           liquidation, dissolution or winding up) with the
                           Series B Preferred Stock, except dividends paid
                           ratably on the Series B Preferred Stock and all such
                           parity stock on which dividends are payable or in
                           arrears in proportion to the total amounts to which
                           the holders of all such shares are then entitled;

                                    c.       redeem or purchase or otherwise
                           acquire for consideration shares of any stock ranking
                           junior (either as to dividends or upon liquidation,
                           dissolution or winding up) to the Series B Preferred
                           Stock, provided that the Corporation may at any time
                           redeem, purchase or otherwise acquire shares of any
                           such junior stock in exchange for shares of any stock
                           of the Corporation ranking junior (either as to
                           dividends or upon dissolution, liquidation or winding
                           up) to the Series B Preferred Stock; or

                                    d.       redeem or purchase or otherwise
                           acquire for consideration any shares of Series B
                           Preferred Stock, or any shares of stock ranking on a
                           parity with the Series B Preferred Stock, except in
                           accordance with a purchase offer made in writing or
                           by publication (as determined by the Board of
                           Directors) to all holders of such shares upon such
                           terms as the Board of Directors, after consideration
                           of the respective annual dividend rates and other
                           relative rights and preferences of the respective
                           series and classes, shall determine in good faith
                           will result in fair and equitable treatment among the
                           respective series or classes.

                           (ii)     The Corporation shall not permit any
                  subsidiary of the Corporation to purchase or otherwise acquire
                  for consideration any shares of stock of the Corporation
                  unless the Corporation could, under paragraph (i) of this
                  Article 14(c), purchase or otherwise acquire such shares at
                  such time and in such manner.

                                      -13-



                  (d)      Any shares of Series B Preferred Stock purchased or
         otherwise acquired by the Corporation in any manner whatsoever shall be
         retired and canceled promptly after the acquisition thereof. All such
         shares shall upon their cancellation become authorized but unissued
         shares of Preferred Stock and may be reissued as part of a new series
         of Preferred Stock subject to the conditions and restrictions on
         issuance set forth herein, in the Articles of Incorporation, or in any
         other Articles of Amendment creating a series of Preferred Stock or any
         similar stock or as otherwise required by law.

                  (e)      Upon any liquidation, dissolution or winding up of
         the Corporation, no distribution shall be made (i) to the holders of
         shares of stock ranking junior (either as to dividends or upon
         liquidation, dissolution or winding up) to the Series B Preferred Stock
         unless, prior thereto, the holders of shares of Series B Preferred
         Stock shall have received the greater of (a) $1000 per share, plus an
         amount equal to accrued and unpaid dividends and distributions thereon,
         whether or not declared, to the date of such payment, or (b) an
         aggregate amount per share, subject to the provision for adjustment
         hereinafter set forth, equal to 1000 times the aggregate amount to be
         distributed per share to holders of shares of Common Stock, or (ii) to
         the holders of shares of stock ranking on a parity (either as to
         dividends or upon liquidation, dissolution or winding up) with the
         Series B Preferred Stock, except distributions made ratably on the
         Series B Preferred Stock and all such parity stock in proportion to the
         total amounts to which the holders of all such shares are entitled upon
         such liquidation, dissolution or winding up. In the event the
         Corporation shall at any time declare or pay any dividend on the Common
         Stock payable in shares of Common Stock, or effect a subdivision or
         combination or consolidation of the outstanding shares of Common Stock
         (by reclassification or otherwise than by payment of a dividend in
         shares of Common Stock) into a greater or lesser number of shares of
         Common Stock, then in each such case the aggregate amount to which
         holders of shares of Series B Preferred Stock were entitled immediately
         prior to such event under the proviso in clause (i) of the preceding
         sentence shall be adjusted by multiplying such amount by a fraction the
         numerator of which is the number of shares of Common Stock outstanding
         immediately after such event and the denominator of which is the number
         of shares of Common Stock that were outstanding immediately prior to
         such event.

                  (f)      In case the Corporation shall enter into any
         consolidation, merger, combination or other transaction in which the
         shares of Common Stock are exchanged for or changed into other stock or
         securities, cash and/or any other property, then in any such case each
         share of Series B Preferred Stock shall at the same time be similarly
         exchanged or changed into an amount per share, subject to the provision
         for adjustment hereinafter set forth, equal to 1000 times the aggregate
         amount of stock, securities, cash and/or any other property (payable in
         kind), as the case may be, into which or for which each share of Common
         Stock is changed or exchanged. In the event the Corporation shall at
         any time declare or pay any dividend on the Common Stock payable in
         shares of Common Stock, or effect a subdivision or combination or
         consolidation of the outstanding shares of Common Stock (by
         reclassification or otherwise than by

                                      -14-



         payment of a dividend in shares of Common Stock) into a greater or
         lesser number of shares of Common Stock, then in each such case the
         amount set forth in the preceding sentence with respect to the exchange
         or change of shares of Series B Preferred Stock shall be adjusted by
         multiplying such amount by a fraction, the numerator of which is the
         number of shares of Common Stock outstanding immediately after such
         event and the denominator of which is the number of shares of Common
         Stock that were outstanding immediately prior to such event.

                  (g)      The shares of Series B Preferred Stock shall not be
         redeemable.

                  (h)      The Series B Preferred Stock shall rank, with respect
         to the payment of dividends and the distribution of assets, junior to
         all series of any other class of the Corporation's Preferred Stock.

                  (i)      The Amended Articles of Incorporation of the
         Corporation shall not be amended in any manner which would materially
         alter or change the powers, preferences or special rights of the Series
         B Preferred Stock so as to affect them adversely without the
         affirmative vote of the holders of at least two-thirds of the
         outstanding shares of Series B Preferred Stock, voting together as a
         single class.

                  (j)      In the event that the Rights Agreement dated as of
         July 20, 1998 between the Corporation and First Chicago Trust Company
         of New York, as Rights Agent (or any successor Rights Agent) is
         terminated or expires prior to the issuance of any shares of Series B
         Preferred Stock, all shares of Series B Preferred Stock shall become
         authorized but unissued shares of Preferred Stock and may be reissued
         as part of a new series of Preferred Stock subject to the conditions
         and restrictions on issuance set forth in the Articles of Incorporation
         or in any other Articles of Amendment creating a series of Preferred
         Stock or any similar stock or as otherwise required by law.

                                      -15-