
<PAGE>
 
                                                                     EXHIBIT 3.2



                         AMENDED AND RESTATED BY-LAWS

                                      OF

                         CAREER EDUCATION CORPORATION

                   (Amended and Restated ___________, 1998)


                                   ARTICLE I
                                   ---------

                                    OFFICES
                                    -------

     Section 1.1. Registered Office. The registered office of Career Education
Corporation (the "Corporation") shall be in the City of Wilmington, County of
New Castle, State of Delaware.

     Section 1.2. Other Offices. The Corporation may also have offices at such
other places both within and 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. Place of Meeting. All meetings of the stockholders for the
election of directors shall be held at such place either within or without the
State of Delaware as shall be designated from time to time by the Board of
Directors and stated in the notice of the meeting. Meetings of stockholders for
any other purpose may be held at such time and place, within or without the
State of Delaware, as shall be stated by the Board of Directors in its notice of
the meeting or in a duly executed waiver of notice thereof.

     Section 2.2. Time of Annual Meeting. Annual meetings of stockholders shall
be held on the third Thursday in May, if not a legal holiday, and if a legal
holiday, then on the next secular day following, at 10:00 A.M., or at such other
date and time as shall be designated from time to time by the Board of Directors
and stated in the notice of the meeting, at which stockholders shall elect
directors to hold office for the term provided in Section 3.2 of these By-laws
and conduct such other business as shall be considered.

     Section 2.3. Notice of Annual Meetings. Except as otherwise required by
law, written notice of the annual meeting stating the place, date and hour of
the meeting shall be given to each stockholder entitled to vote at such meeting
not fewer than ten (10) nor more than sixty (60) days before the date of the
meeting.
<PAGE>
 
     Section 2.4. Director Nominations. Only persons who are nominated in
accordance with the following procedures shall be eligible to serve as
directors. Nominations of persons for election to the Board of Directors of the
Corporation at a meeting of stockholders may be made (i) by or at the direction
of the Board of Directors, or (ii) by any stockholder of the Corporation
entitled to vote in the election of directors at the meeting who complies with
the notice procedures set forth in this Article II, Section 2.4. Such
nominations, other than those made by or at the direction of the Board of
Directors, shall be made pursuant to timely notice in writing to the Secretary
of the Corporation. To be timely, a stockholder's notice must be delivered to,
or mailed and received by, the Secretary of the Corporation at the principal
executive offices of the Corporation not less than ninety (90) days prior to the
first anniversary of the date of the previous year's annual meeting of
stockholders; provided, however, that if no annual meeting of stockholders was
held in the previous year or if the date of the annual meeting is advanced by
more than thirty (30) days prior to, or delayed by more than sixty (60) days
after, such anniversary date, notice by the stockholder to be timely must be so
delivered, or mailed and received, not later than the close of business on the
later of (a) the sixtieth (60th) day prior to such annual meeting or (b) the
tenth (10th) day following the day on which the date of such meeting has been
first "publicly disclosed" (in the manner provided in the last sentence of this
Article II, Section 2.4) by the Corporation. Notwithstanding the foregoing, in
the event that the number of directors to be elected to the Board of Directors
is increased and the names of all of the nominees for director position are not
"publicly disclosed" by the Corporation at least seventy (70) days prior to the
date of the first anniversary of the prior year's annual meeting of
stockholders, a stockholder's notice pursuant to this Article II, Section 2.4
shall also be considered timely, but only with respect to nominees for any new
positions created by such increase, if it shall be delivered to, or mailed and
received by, the Secretary of the Corporation at the principal executive offices
of the Corporation not later than the close of business on the tenth (10th) day
following the day on which such names have been first "publicly disclosed" by
the Corporation. Any stockholder's notice pursuant to this Article II, Section
2.4 shall set forth (i) as to each person whom the stockholder proposes to
nominate for election or re-election as a director, all information relating to
such person that is required to be disclosed in solicitations of proxies for
election of directors, or is otherwise required, in each case pursuant to
Regulation 14A under the Securities Exchange Act of 1934, as amended (including
such person's written consent to being named in the proxy statement as a nominee
and to serving as director if elected); and (ii) as to the stockholder giving
notice (A) the name and address, as they appear on the Corporation's books, of
such stockholder and (B) the class and number of shares of the Corporation which
are beneficially owned by such stockholder. At the request of the Board of
Directors, any person nominated by the Board of Directors for election as a
director shall furnish to the Secretary of the Corporation that information
required to be set forth in a stockholder's notice of nomination which pertains
to the nominee. No person shall be eligible to serve as a director of the
Corporation unless nominated in accordance with the procedures set forth herein.
The presiding officer shall, if the facts so warrant, determine and declare to
the meeting that a nomination was not made in accordance with the procedures
prescribed by the By-laws, and if such officer should so determine, such officer
shall so declare to the meeting, and the defective nomination shall be
disregarded. For purposes of these By-laws, "publicly disclosed" or "public
disclosure" shall mean disclosure in a press release reported by the Dow Jones
News Service, Associated Press or a comparable national news service or in a
document publicly filed by the Corporation with the Securities and Exchange
Commission.

                                      -2-
<PAGE>
 
     Section 2.5. Annual Meeting Agenda Items. At an annual meeting of the
stockholders, only such business shall be conducted as shall have been brought
before the meeting (i) by or at the direction of the Board of Directors, or (ii)
by any stockholder of the Corporation who complies with the notice procedures
set forth in this Article II, Section 2.5, in the time herein provided. For
business to be properly brought before an annual meeting by a stockholder, the
stockholder must deliver written notice to, or mail such written notice so that
it is received by, the Secretary of the Corporation, at the principal executive
offices of the Corporation, not less than ninety (90) days prior to the first
anniversary of the date of the previous year's annual meeting of stockholders;
provided, however, that if no annual meeting of stockholders was held in the
previous year or if the date of the annual meeting is advanced by more than
thirty (30) days prior to, or delayed by more than sixty (60) days after, such
anniversary date, notice by the stockholder to be timely must be so delivered,
or mailed and received, not later than the close of business on the later of (a)
the sixtieth (60th) day prior to such annual meeting or (b) the tenth (10th) day
following the day on which the date of the meeting has been first "publicly
disclosed" (in the manner provided in Article II, Section 2.4 above) by the
Corporation. Any stockholder's notice pursuant to this Article II, Section 2.5
shall set forth as to each matter the stockholder proposes to bring before the
annual meeting (A) a brief description of the business desired to be brought
before the annual meeting and the reasons for conducting such business at the
annual meeting, (B) the name and address, as they appear on the Corporation's
books, of the stockholder proposing such business, (C) the class and number of
shares of the Corporation which are beneficially owned by the stockholder and
(D) any material interest of the stockholder in such business. At an annual
meeting, the presiding officer shall, if the facts warrant, determine and
declare to the meeting that business was not properly brought before the meeting
in accordance with the provisions of this Article, Section 2.5, and if such
officer should so determine, such officer shall so declare to the meeting, and
any such business not properly brought before the meeting shall not be
transacted. Whether or not the foregoing procedures are followed, no matter
which is not a proper matter for stockholder consideration shall be brought
before the meeting.

     Section 2.6. Special Meetings of the Stockholders. Special meetings of the
stockholders of the Corporation may be called only by the Board of Directors
pursuant to a resolution approved by a majority of the Board of Directors. The
business transacted at any special meeting of the stockholders shall be limited
to the purposes stated in the notice for the meeting transmitted to
stockholders.

     Section 2.7. Notice of Special Meetings. Written notice of a special
meeting stating the place, date and hour of the meeting and the purpose or
purposes for which the meeting is called, shall be given by the Secretary of the
Corporation, not fewer than ten (10) nor more than sixty (60) days before the
date of the meeting, to each stockholder entitled to vote at such meeting.

     Section 2.8. Fixing of Record Date. In order that the Corporation may
determine the stockholders entitled to notice of or to vote at any meeting of
stockholders or any adjournment thereof, or entitled to receive payment of any
dividend or other distribution or allotment of any rights, or entitled to
exercise any rights in respect of any change, conversion or exchange of stock or
for the purpose of any other lawful action, the Board of Directors may fix a
record date, which shall not precede the date upon which the resolution fixing
the record date is adopted and which shall be (i) not more than sixty (60) nor
less than ten (10) days before the date of a

                                      -3-
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meeting, and (ii) not more than sixty (60) days prior to any other action.  A
determination of stockholders of record entitled to notice of, or to vote at, a
meeting of stockholders shall apply to any adjournment of the meeting; provided,
however, that the Board of Directors may fix a new record date for any adjourned
meeting.

     Section 2.9. Voting Lists. The officer who has charge of the stock ledger
of the Corporation shall prepare and make, at least ten (10) days before every
meeting of stockholders, a complete list of the stockholders entitled to vote at
the meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each stockholder.
Such list shall be open to the examination of any stockholder, for any purpose
germane to the meeting, during ordinary business hours, for a period of at least
ten (10) days prior to the meeting, either at a place within the city where the
meeting is to be held, which place shall be specified in the notice of the
meeting, or, if not so specified, at the place where the meeting is to be held.
The list shall also be produced and kept at the time and place of the meeting
during the whole time thereof and may be inspected by any stockholder who is
present.

     Section 2.10. Quorum and Adjournments. The holders of a majority of the
voting power of the stock issued and outstanding and entitled to vote thereat,
present in person or represented by proxy, shall constitute a quorum at all
meetings of the stockholders for the transaction of business, except as
otherwise provided by statute or by the Corporation's Certificate of
Incorporation. If, however, such quorum shall not be present or represented at
any such 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, without notice other than announcement at the
meeting, until a quorum shall be present or represented; provided that if the
adjournment is for more than thirty (30) days, or if after the adjournment a new
record date is fixed by the directors for the adjourned meeting, a new notice
shall be transmitted to the stockholders of record entitled to vote at the
adjourned meeting. 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 2.11. Vote Required. When a quorum is present at any meeting of all
stockholders, the affirmative vote of the holders of a majority of the voting
power of the stock issued and outstanding and entitled to vote thereat, present
in person or represented by proxy, shall decide any question brought before such
meeting, unless the question is one upon which, by express provision of statute
or of the Corporation's Certificate of Incorporation, a different vote is
required, in which case such express provision shall govern and control the
decision of such question; provided, however, all elections of directors shall
be determined by a plurality of the votes cast.

     Section 2.12. Voting Rights. Unless otherwise provided in the Corporation's
Certificate of Incorporation, each stockholder having voting power shall at
every meeting of the stockholders be entitled to one (1) vote in person or by
proxy for each share of the capital stock having voting power held by such
stockholder, but no proxy shall be voted on after three (3) years from its date,
unless the proxy provides for a longer period. At any meeting of the
stockholders, every stockholder entitled to vote may vote in person or by proxy
authorized by an instrument in writing or by a transmission permitted by law
filed in accordance with the procedure established for the meeting. Any copy,
facsimile telecommunication or other reliable

                                      -4-
<PAGE>
 
reproduction of the writing or transmission created pursuant to this paragraph
may be substituted or used in lieu of the original writing or transmission for
any and all purposes for which the original writing or transmission could be
used; provided that such copy, facsimile telecommunication or other reproduction
shall be a complete reproduction of the entire original writing or transmission.
All voting, including on the election of directors, may (except where otherwise
required by law) be by a voice vote; provided, however, that upon demand
therefor by a stockholder entitled to vote or by his or her proxy, a stock vote
shall be taken. Every stock vote shall be taken by ballots, each of which shall
state the name of the stockholder or proxy voting and such other information as
may be required under the procedure established for the meeting. The Corporation
may, and to the extent required by law shall, in advance of any meeting of
stockholders, appoint one or more inspectors to act at the meeting and make a
written report thereof. The Corporation may designate one or more persons as
alternate inspectors to replace any inspector who fails to act. If no inspector
or alternate is able to act at a meeting of stockholders, the person presiding
at the meeting may, and to the extent required by law shall, appoint one or more
inspectors to act at the meeting. Each inspector, before entering upon the
discharge of his or her duties, shall take and sign an oath to faithfully
execute the duties of inspector with strict impartiality and according to the
best of his or her ability. Every vote taken by ballots shall be counted by an
inspector or inspectors appointed by the chairman of the meeting.

     Section 2.13. Presiding Over Meetings. The Chairman of the Board of
Directors shall preside at all meetings of the stockholders. In the absence or
inability to act of the Chairman, the Vice Chairman, the President or a Vice
President (in that order) shall preside, and in their absence or inability to
act another person designated by one of them shall preside. The Secretary of the
Corporation shall act as Secretary of each meeting of the stockholders. In the
event of his or her absence or inability to act, the chairman of the meeting
shall appoint a person who need not be a stockholder to act as Secretary of the
meeting.

     Section 2.14. Conducting Meetings. Meetings of the stockholders shall be
conducted in a fair manner but need not be governed by any prescribed rules of
order. The presiding officer of the meeting shall establish an agenda for the
meeting. The presiding officer's rulings on procedural matters shall be final.
The presiding officer is authorized to impose reasonable time limits on the
remarks of individual stockholders and may take such steps as such officer may
deem necessary or appropriate to assure that the business of the meeting is
conducted in a fair and orderly manner.


                                  ARTICLE III
                                  -----------

                                   DIRECTORS
                                   ---------

     Section 3.1. General Powers. The business and affairs of the Corporation
shall be under the direction of, and managed by, a board comprised of directors,
which may exercise all such powers of the Corporation and do all such lawful
acts and things as are not required by statute, by the Corporation's Certificate
of Incorporation or by these By-laws to be done by the stockholders. Directors
need not be residents of the State of Delaware or stockholders of the

                                      -5-
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Corporation. The number of directors shall be determined in the manner provided
in the Corporation's Certificate of Incorporation.

     Section 3.2. Election. Directors shall be elected by class for three (3)
year or other terms as specified in the Corporation's Certificate of
Incorporation, and each director elected shall hold office during the term for
which he or she is elected and until his or her successor is elected and
qualified, subject, however, to his or her prior death, resignation, retirement
or removal from office.

     Section 3.3. Removal. Directors may only be removed for cause, except as
otherwise provided by law, by the holders of at least sixty-six and two-thirds
percent (66-2/3%) of the voting power of the shares entitled to vote at an
election of directors.

     Section 3.4. Vacancies. Any vacancies occurring in the Board of Directors
and newly created directorships shall be filled in the manner provided in the
Corporation's Certificate of Incorporation.

     Section 3.5. Place of Meetings. The Board of Directors of the Corporation
may hold meetings, both regular and special, either within or without the State
of Delaware. The first meeting of each newly elected Board of Directors shall be
held immediately following the adjournment of the annual meeting of the
stockholders at the same place as such annual meeting and no notice of such
meeting shall be necessary to the newly elected directors in order to legally
constitute the meeting, provided a quorum shall be present. In the event such
meeting is not held at such time and place, the meeting may be held at such time
and place as shall be specified in a notice given as hereinafter provided for
special meetings of the Board of Directors, or as shall be specified in a
written waiver signed by all of the directors.

     Section 3.6. Participation by Conference Telephone. Unless otherwise
restricted by the Corporation's Certificate of Incorporation or these By-laws,
members of the Board of Directors, or any committee designated by the Board of
Directors, may participate in a meeting of the Board of 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 by such means shall constitute presence in person at such meeting.

     Section 3.7. Regular Meetings. Regular meetings of the Board of Directors
may be held, without notice, at such time and at such place as shall from time
to time be determined by the Board of Directors.

     Section 3.8. Special Meetings. Special meetings of the Board of Directors
may be called by the Chairman of the Board, the Chief Executive Officer or the
President on at least one day's notice to each director, either personally, or
by courier, telephone, telefax, mail or telegram. Special meetings shall be
called by the Chairman, the Chief Executive Officer or the President in like
manner and on like notice at the written request of two or more of the directors
comprising the Board of Directors stating the purpose or purposes for which such
meeting is requested. Notice of any meeting of the Board of Directors for which
a notice is required may be waived in writing signed by the person or persons
entitled to such notice, whether before or after the time of such meeting, and
such waiver shall be equivalent to the giving of such notice.

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Attendance of a director at any such meeting shall constitute a waiver of notice
thereof, except where a director attends a meeting for the express purpose of
objecting to the transaction of any business because such meeting is not
lawfully convened. Neither the business to be transacted at, nor the purpose of,
any meeting of the Board of Directors for which a notice is required need be
specified in the notice, or waiver of notice, of such meeting. The Chairman
shall preside at all meetings of the Board of Directors. In the absence or
inability to act of the Chairman, then the Vice Chairman (if one shall have been
chosen by the Board), the Chief Executive Officer, the President or the Chief
Financial Officer (in that order) shall preside, and in their absence or
inability to act, another director designated by one of them shall preside.

     Section 3.9. Quorum; No Action on Certain Matters. At all meetings of the
Board of Directors, a majority of the then duly elected directors shall
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 by the Corporation's Certificate of Incorporation. If a quorum
shall not be present at any meeting of the Board 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.

     Section 3.10. Resignations. Any director of the Corporation may resign at
any time by giving written notice to the Board of Directors, the Chairman or the
President. Such resignation shall take effect at the time specified therein and,
unless tendered to take effect upon acceptance thereof, the acceptance of such
resignation shall not be necessary to make it effective.

     Section 3.11. Informal Action. Unless otherwise restricted by the
Corporation's 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 all members of the Board of
Directors or committee consent thereto in writing and the writing or writings
are filed with the minutes of proceedings of the Board of Directors or
committee.

     Section 3.12. Presumption of Assent. A director of the Corporation who is
present at a meeting of the Board of Directors at which action on any corporate
matter is taken shall be conclusively presumed to have assented to the action
taken unless his or her dissent shall be entered in the minutes of the meeting
or unless he or she shall file his or her written dissent to such action with
the person acting as the 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 3.13. Compensation of Directors. In the discretion of the Board of
Directors, the directors may be paid their expenses, if any, of attendance at
each meeting of the Board of Directors or a committee thereof, may be paid a
stated salary or a fixed sum for attendance at each meeting of the Board of
Directors or a committee thereof and may be awarded other compensation for their
service as directors. No such payment or award shall preclude any director from
serving the Corporation in any other capacity and receiving compensation
therefor. Members of special or standing committees may be allowed like
compensation for attending committee meetings.

                                      -7-
<PAGE>
 
                                  ARTICLE IV
                                  ----------

                            COMMITTEES OF DIRECTORS
                            -----------------------

     Section 4.1. Appointment and Powers. The Board of Directors may designate
one or more committees, each committee to consist of one or more of the
directors of the Corporation. The Board of Directors may designate one or more
directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of the committee. In the absence or
disqualification of a member of a committee, the member or members thereof
present at any 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 the place of any such absent or
disqualified member. Any such committee, to the extent provided in the
resolution of the Board of Directors, shall have and may exercise all the powers
and authority of the Board of Directors in the management of the business and
affairs of the Corporation, and may authorize the seal of the Corporation to be
affixed to all papers which may require it; but no such committee shall have the
power or authority in reference to the following matters: (a) approving or
adopting, or recommending to the stockholders, any action or matter expressly
required by the Delaware General Corporation Law to be submitted to stockholders
for approval or (b) adopting, amending or repealing any of the By-laws.

     Section 4.2. Committee Minutes. Each committee shall keep regular minutes
of its meetings and shall file such minutes and all written consents executed by
its members with the Secretary of the Corporation. Each committee may determine
the procedural rules for meeting and conducting its business and shall act in
accordance therewith, except as otherwise provided herein or required by law.
Adequate provision shall be made for notice to members of all meetings; one-
third of the members shall constitute a quorum unless the committee shall
consist of one or two members, in which event one member shall constitute a
quorum; and all matters shall be determined by a majority vote of the members
present. Action may be taken by any committee without a meeting if all members
thereof consent thereto in writing and the writing or writings are filed with
the minutes of the proceedings of such committee.

                                   ARTICLE V
                                   ---------

                                    NOTICES
                                    -------

     Section 5.1. Manner of Notice. Whenever, under applicable law or the
Corporation's Certificate of Incorporation or these By-laws, notice is required
to be given to any director or stockholder, unless otherwise provided in the
Corporation's Certificate of Incorporation or these By-laws, such notice may be
given in writing, by courier or mail, addressed to such director or stockholder,
at such director's or stockholder's address as it appears on the records of the
Corporation, with freight or postage thereon prepaid, and such notice shall be
deemed to be given at the time when the same shall have been deposited with such
courier or in the United States mail. Notice may be given orally if such notice
is confirmed in writing in a manner provided therein. Notice to directors may
also be given by telegram, mailgram, telex or telecopier.

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     Section 5.2. Waiver. Whenever any notice is required to be given under
applicable law or the provisions of the Corporation's Certificate of
Incorporation or these By-laws, a waiver thereof in writing, signed by the
person or persons entitled to said notice, whether before or after the time
stated therein, shall be deemed equivalent thereto.


                                  ARTICLE VI
                                  ----------

                                   OFFICERS
                                   --------

     Section 6.1. Number and Qualifications. The officers of the Corporation
shall be chosen by the Board of Directors and shall be a Chairman of the Board,
a Chief Executive Officer, a President, a Chief Financial Officer, one or more
Vice Presidents, a Secretary and a Treasurer. The Board of Directors may also
choose a Vice Chairman for the Board (or Vice Chairman), one or more Assistant
Secretaries and Assistant Treasurers and such additional officers as the Board
of Directors may deem necessary or appropriate from time to time. Membership on
the Board of Directors shall not be a prerequisite to the holding of any other
office. Any number of offices may be held by the same person, unless the
Corporation's Certificate of Incorporation or these By-laws otherwise provide.

     Section 6.2. Election. The Board of Directors at its first meeting after
each annual meeting of stockholders shall elect a Chairman of the Board, a Chief
Executive Officer, a President, a Chief Financial Officer, one or more Vice
Presidents, a Secretary and a Treasurer, and may choose a Vice Chairman of the
Board, one or more Assistant Secretaries and Assistant Treasurers and such other
officers as the Board of Directors shall deem desirable.

     Section 6.3. Other Officers and Agents'. The Board of Directors may choose
such other officers and agents as it shall deem necessary, which officers and
agents shall hold their offices for such terms and shall exercise such powers
and perform such duties as shall be determined from time to time by the Board of
Directors.

     Section 6.4. Salaries. The salaries or other compensation of the officers
and agents of the Corporation shall be fixed from time to time by the Board of
Directors, and no officer shall be prevented from receiving such salary or other
compensation by reason of the fact that such officer is also a director of the
Corporation.

     Section 6.5. Term of Office. The officers of the Corporation shall hold
office until their successors are chosen and qualified or until their earlier
resignation or removal. Any officer elected or appointed by the Board of
Directors may be removed at any time, either with or without cause, by the
affirmative vote of a majority of the directors then in office at any meeting of
the Board of Directors. If a vacancy shall exist in the office of the
Corporation, the Board of Directors may elect any person to fill such vacancy,
such person to hold office as provided in Section 6.1 of this Article VI.

     Section 6.6. The Chairman of the Board. The Chairman of the Board (or
Chairman) shall preside at all meetings of the stockholders and of the Board of
Directors and shall see that

                                      -9-
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orders and resolutions of the Board of Directors are carried into effect. The
Chairman of the Board shall perform such duties as may be assigned to him by the
Board of Directors.

     Section 6.7. The Chief Executive Officer. The Chief Executive Officer shall
be the principal executive officer of the Corporation and shall, in general,
supervise and control all of the business and affairs of the Corporation, unless
otherwise provided by the Board of Directors. In the absence of the Chairman of
the Board, the Chief Executive Officer shall preside at all meetings of the
stockholders and of the Board of Directors and shall see that orders and
resolutions of the Board of Directors are carried into effect. The Chief
Executive Officer may sign bonds, mortgages, certificates for shares and all
other contracts and documents, whether or not under the seal of the Corporation,
except in cases where the signing and execution thereof shall be expressly
delegated by law, by the Board of Directors or by these By-laws to some other
officer or agent of the Corporation. The Chief Executive Officer shall have
general powers of supervision and shall be the final arbiter of all differences
between officers of the Corporation, and the Chief Executive Officer's decision
as to any matter affecting the Corporation shall be final and binding as between
the officers of the Corporation, subject only to its Board of Directors.

     Section 6.8. The President. Unless another party has been designated as
Chief Operating Officer, the President shall be the Chief Operating Officer of
the Corporation responsible for the day-to-day active management of the business
of the Corporation, under the general supervision of the Chief Executive
Officer. In the absence of the Chief Executive Officer, the President shall
perform the duties of the Chief Executive Officer, and when so acting, shall
have all the powers of and be subject to all the restrictions upon the Chief
Executive Officer. The President shall have concurrent power with the Chief
Executive Officer to sign bonds, mortgages, certificates for shares and other
contracts and documents, whether or not under the seal of the Corporation,
except in cases where the signing and execution thereof shall be expressly
delegated by law, by the Board of Directors or by these By-laws to some other
officer or agent of the Corporation. In general, the President shall perform all
duties incident to the office of the President and such other duties as the
Chief Executive Officer or the Board of Directors may from time to time
prescribe.

     Section 6.9. The Chief Financial Officer. The Chief Financial Officer shall
be the principal financial and accounting officer of the Corporation. The Chief
Financial Officer shall: (a) have charge of and be responsible for the
maintenance of adequate books of account for the Corporation; (b) have charge
and custody of all funds and securities of the Corporation, and be responsible
therefor and for the receipt and disbursement thereof; and (c) perform all the
duties incident to the office of the Chief Financial Officer and such other
duties as from time to time may be assigned to him by the President or by the
Board of Directors. If required by the Board of Directors, the Chief Financial
Officer shall give a bond for the faithful discharge of the Chief Financial
Officer's duties in such sum and with such surety or sureties as the Board of
Directors may determine.

     Section 6.10. The Vice Presidents. In the absence of the President, or in
the event of the President's inability or refusal to act, the Vice Presidents
(in the order designated, or in the absence of any designation, then in the
order of their election) shall perform the duties of the President, and when so
acting, shall have all the powers of, and be subject to all the restrictions

                                     -10-
<PAGE>
 
upon, the President. The Vice Presidents shall perform such other duties and
have such other powers as the Chief Executive Officer or the Board of Directors
may from time to time prescribe.

     Section 6.11. The Secretary. The Secretary shall attend all meetings of the
Board of Directors and all meetings of the stockholders and record all the
proceedings of the meetings of the Corporation and of the Board of Directors in
a book to be kept for that purpose and shall perform like duties for the
standing committees when required. The Secretary shall give, or cause to be
given, or cause to be given notice of all meetings of the stockholders and
special meetings of the Board of Directors and shall perform such other duties
as may be prescribed by the Board of Directors or the Chief Executive Officer,
under whose supervision the Secretary shall be. The Secretary shall have custody
of the corporate seal of the Corporation and the Secretary or an Assistant
Secretary, shall have authority to affix the same to any instrument requiring it
and when so affixed, it may be attested by the Secretary's signature or by the
signature of such Assistant Secretary. The Board of Directors may give general
authority to any other officer to affix the seal of the Corporation and to
attest the affixing by such officer's signature.

     Section 6.12. The Treasurer. In the absence of the Chief Financial Officer
or in the event of the Chief Financial Officer's inability or refusal to act,
the Treasurer shall perform the duties of the Chief Financial Officer, and when
so acting, shall have all the powers of and be subject to all the restrictions
upon the Chief Financial Officer. The Treasurer shall perform such other duties
and have such other powers as the Chief Executive Officer or the Board of
Directors may from time to time prescribe.

     Section 6.13. The Assistant Secretary. The Assistant Secretary, or if there
be more than one, the Assistant Secretaries in the order determined by the Board
of Directors (or if there be no such determination, then in the order of their
election), shall, in the absence of the Secretary or in the event of the
Secretary's inability or refusal to act, perform the duties and exercise the
powers of the Secretary and shall perform such other duties and have such other
powers as the Chief Executive Officer or the Board of Directors may from time to
time prescribe.

     Section 6.14. The Assistant Treasurer. The Assistant Treasurer, or if there
shall be more than one, the Assistant Treasurers in the order determined by the
Board of Directors (or if there be no such determination, then in the order of
their election), shall, in the absence of the Treasurer or in the event of the
Treasurer's inability or refusal to act, perform the duties and exercise the
powers of the Treasurer and shall perform such other duties and have such other
powers as the Chief Executive Officer or the Board of Directors may from time to
time prescribe.

                                     -11-
<PAGE>
 
                                  ARTICLE VII
                                  -----------

               CERTIFICATES OF STOCK, TRANSFERS AND RECORD DATES
               -------------------------------------------------

     Section 7.1. Form of Certificates. Every holder of stock in the Corporation
shall be entitled to have a certificate signed by, or in the name of, the
Corporation by (a) the Chairman of the Board, the Vice-Chairman of the Board or
the President of the Corporation, and (b) the Secretary, the Treasurer, an
Assistant Secretary or an Assistant Treasurer of the Corporation, certifying the
number of shares owned by such holder in the Corporation. If the Corporation
shall be authorized to issue more than one class of stock or more than one
series of any class, the powers, designations, preferences and relative,
participating, optional or other special rights of each class of stock or series
thereof and the qualifications, limitations or restrictions of such preferences
and/or rights shall be set forth in full or summarized on the face or back of
the certificate which the Corporation shall issue to represent such class or
series of stock; provided that, except as otherwise provided in Section 202 of
the General Corporation Law of Delaware, in lieu of the foregoing requirements,
there may be set forth, on the face or back of the cer tificate which the
Corporation shall issue to represent such class or series of stock, a statement
that the Corporation will furnish without charge to each stockholder who so
requests the powers, designations, preferences and relative, participating,
optional or other special rights of each class of stock or series thereof and
the qualifications, limitations or restrictions of such preferences and/or
rights. Subject to the foregoing, certificates of stock of the Corporation shall
be in such form as the Board of Directors may from time to time prescribe.

     Section 7.2. Facsimile Signatures. Where a certificate is countersigned (i)
by a transfer agent other than the Corporation or its employee or (ii) by a
registrar other than the Corporation or its employee, any other signatures on
the certificate may be facsimile. In case any officer, transfer agent or
registrar who has signed, or whose facsimile signature has been placed upon, a
certificate shall have ceased to be such officer, transfer agent or registrar
before such certificate is issued, it may be issued by the Corporation with the
same effect as if such person were such officer, transfer agent or registrar at
the date of issue.

     Section 7.3. Lost Certificates. The Board of Directors 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 certificate or
certificates, or such owner's legal representative, to advertise the same in
such manner as the Corporation shall require and/or give the Corporation a bond
in such sum as it may direct as indemnity against any claim that may be made
against the Corporation or its transfer agent or registrar with respect to the
certificate alleged to have been lost, stolen or destroyed.

     Section 7.4. 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, it shall be the duty of the

                                     -12-
<PAGE>
 
Corporation to issue a new certificate to the person entitled thereto, cancel
the old certificate and record the transaction upon its books.

     Section 7.5.  Registered Stockholders.  The Corporation shall be entitled
to recognize the exclusive right of a person registered on its books as the
owner of shares to receive dividends and to vote as such owner and to hold
liable for calls and assessments a person registered on its books as the owner
of shares, and 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 the Corporation shall have express or other notice thereof, except as
otherwise provided by the laws of Delaware.

                                 ARTICLE VIII
                                 ------------

                             CONFLICT OF INTERESTS
                             ---------------------

     Section 8.1.  Contract or Relationship Not Void. No contract or transaction
between the Corporation and one or more of its directors or officers, or between
the Corporation and any other corporation, partnership, association or other
organization in which one or more of its directors or officers are directors or
officers or have a financial interest shall be void or voidable solely for this
reason, or solely because such director or officer is present at, or
participates in, the meeting of the Board of Director's or committee thereof
which authorizes the contract or transaction, or solely because such director's
or officer's vote is counted for such purpose, if:

     (i)    The material facts as to such director's or officer's relationship
            or interest and as to the contract or transaction are disclosed or
            are known to the Board of Directors or the committee, and the board
            or committee in good faith authorizes the contract or transaction by
            the affirmative vote of a majority of the disinterested directors,
            even though the disinterested directors be less than a quorum; or

     (ii)   The material facts as to such director's or officer's relationship
            or interest and as to the contract or transaction are disclosed or
            are known to the stockholders entitled to vote thereon, and the
            contract or transaction is specifically approved in good faith by
            vote of the stockholders; or

     (iii)  The contract or transaction is fair as to the Corporation as of the
            time it is authorized, approved or ratified by the Board of
            Directors, a committee thereof, or the stockholders.

     Section 8.2.  Quorum.  Common or interested directors may be counted in
determining the presence of a quorum at a meeting of the Board of Directors or
of a committee which authorizes the contract or transaction.

                                     -13-
<PAGE>
 
                                  ARTICLE IX
                                  ----------

                              GENERAL PROVISIONS
                              ------------------

     Section 9.1.  Dividends.  Dividends upon the capital stock of the
Corporation, subject to the provisions of the Certificate of Incorporation, if
any, 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 or in
shares of the capital stock or rights to acquire same, subject to the provisions
of the Corporation's Certificate of Incorporation. Before payment of any
dividend, there may be set aside out of any funds of the Corporation available
for dividends such sum or sums as the directors from time to time, in their
absolute discretion, think proper as a reserve or reserves to meet
contingencies, or for equalizing dividends, or for repairing or maintaining any
property of the Corporation, or for such other purpose as the directors shall
think conducive to the interest of the Corporation, and the directors may modify
or abolish any such reserve in the manner in which it was created.

     Section 9.2.  Checks.  All checks or demands for money and notes of the
Corporation shall be signed by such officer or officers or such other person or
persons as the Board of Directors may from time to time designate.

     Section 9.3.  Fiscal Year.  The fiscal year of the Corporation shall be
fixed by resolution of the Board of Directors.

     Section 9.4.  Seal.  The corporate seal shall have inscribed thereon the
name of the Corporation and the words "Corporate Seal, Delaware." The seal may
be used by causing it or a facsimile thereof to be impressed or affixed or
reproduced or otherwise.

     Section 9.5.  Stock in Other Corporations.  Shares of any other corporation
which may from time to time be held by this Corporation may be represented and
voted at any meeting of stockholders of such corporation by the Chairman, the
Chief Executive Officer, the President, the Chief Financial Officer or a Vice
President of the Corporation, or by any proxy appointed in writing by the
Chairman, the Chief Executive Officer, the President, the Chief Financial
Officer or a Vice President of the Corporation, or by any other person or
persons thereunto authorized by the Board of Directors. Shares represented by
certificates standing in the name of the Corporation may be endorsed for sale or
transfer in the name of the Corporation by the Chairman, the Chief Executive
Officer, the President, the Chief Financial Officer or any Vice President of the
Corporation or by any other officer or officers thereunto authorized by the
Board of Directors. Shares belonging to the Corporation need not stand in the
name of the Corporation, but may be held for the benefit of the Corporation in
the individual name of the Chief Financial Officer or of any other nominee
designated for the purpose of the Board of Directors.

                                     -14-
<PAGE>
 
                                   ARTICLE X
                                   ---------

                                  AMENDMENTS
                                  ----------

     These By-laws may be altered, amended or repealed or new by-laws may be
adopted only in the manner provided in the Corporation's Certificate of
Incorporation.

                                     -15-
