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<SEC-DOCUMENT>0000893838-05-000092.txt : 20050427
<SEC-HEADER>0000893838-05-000092.hdr.sgml : 20050427
<ACCEPTANCE-DATETIME>20050427170650
ACCESSION NUMBER:		0000893838-05-000092
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		7
FILED AS OF DATE:		20050427
DATE AS OF CHANGE:		20050427
EFFECTIVENESS DATE:		20050427

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PETROLEUM & RESOURCES CORP
		CENTRAL INDEX KEY:			0000216851
		IRS NUMBER:				135506797
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-124373
		FILM NUMBER:		05777201

	BUSINESS ADDRESS:	
		STREET 1:		SEVEN ST PAUL ST
		STREET 2:		STE 1140
		CITY:			BALTIMORE
		STATE:			MD
		ZIP:			21202
		BUSINESS PHONE:		4107525900

	MAIL ADDRESS:	
		STREET 1:		7 ST PAUL STREET
		STREET 2:		STE 1140
		CITY:			BALTIMORE
		STATE:			MD
		ZIP:			21202
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>petros80405.htm
<TEXT>
<HTML>
<HEAD>
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     <TITLE>Form S-8</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
filed with the Securities and Exchange Commission on April 27, 2005.</FONT></TD></TR>
<TR VALIGN=TOP>
<TD ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registration Statement No. 333-&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><HR ALIGN="Left" WIDTH="100%" SIZE="3" COLOR="Gray"></TD></TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>UNITED STATES <BR>SECURITIES AND EXCHANGE COMMISSION<BR></FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Washington, DC 20549 <BR></FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________</FONT></TD></TR>
<TR VALIGN=TOP><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>FORM S-8</B> <BR></FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION STATEMENT <BR>UNDER <BR>THE SECURITIES ACT OF 1933 <BR></FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________</FONT></TD></TR>
<TR VALIGN=TOP><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="5"><B>Petroleum &amp; Resources Corporation</B><BR> </FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(Exact name of registrant as specified in its charter)</B> </FONT></TD></TR>
<TR VALIGN=TOP><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="4">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=42%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Maryland </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(State or Other Jurisdiction of<BR>Incorporation or organization)</B> </FONT> </TD>
<TD ALIGN=CENTER WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=42%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13-5506797 </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(I.R.S. Employer <BR>Identification Number)</B> </FONT> </TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>Seven St. Paul Street<BR>
Suite 1140<BR>Baltimore, Maryland </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(Address of Principal<BR>Executive Offices)</B> </FONT> </TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR><BR><BR>21202 </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(Zip Code)</B> </FONT> </TD>
</TR>
<TR VALIGN=TOP><TD ALIGN="Center" COLSPAN="3"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________<BR><BR></FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>Petroleum &amp; Resources Corporation<BR>
2005 Equity Incentive Compensation Plan</B> </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(Full title of the plan)</B> </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________<BR><BR></FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">LAWRENCE L. HOOPER, JR. <BR>VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY<BR>
Petroleum &amp; Resources Corporation <BR>Seven St. Paul Street <BR>Suite 1140 <BR>Baltimore, Maryland 21202 </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(Name and address of agent for service)</B> </FONT></TD>
</TR>
<TR VALIGN=TOP><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=TOP><TD ALIGN="Center" COLSPAN="3"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(410) 752-5900 </FONT>
<BR><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(Telephone number, including area code, of agent for service)</B> </FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________</FONT></TD>
</TR>
<TR VALIGN=TOP><TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH=100%>
<TR>
     <TD COLSPAN="5" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CALCULATION OF REGISTRATION FEE</B> </FONT> </TD></TR><TR>
     <TD COLSPAN=5><HR SIZE="3" COLOR="Gray"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Title of Securities<BR>to be registered</B> </FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amount<BR>to be<BR>registered (1)</B> </FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Proposed maximum<BR>offering price<BR>per share (2)</B> </FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Proposed maximum<BR>aggregate<BR>offering price (2)</B> </FONT></TD>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amount of<BR>registration<BR>fee</B> </FONT></TD></TR>
<TR>
     <TD COLSPAN=5><HR SIZE=1 COLOR="Gray"></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=32% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common Stock, par value $1.00 per share</FONT></TD>
     <TD WIDTH=16% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>872,639 shares</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$27.71</FONT></TD>
     <TD WIDTH=22% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$24,180,287</FONT></TD>
     <TD WIDTH=11% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$2,847</FONT></TD></TR>
<TR>
     <TD COLSPAN=5><HR SIZE=3 COLOR="Gray"></TD></TR>
<TR>
     <TD COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)&nbsp;&nbsp;&nbsp;
          The shares of Common Stock set forth in the Calculation of Registration Fee
          table and which may be offered pursuant to this registration statement include,
          pursuant to Rule 416 under the Securities Act of 1933, as amended (the
          &#147;Securities Act&#148;), such additional number of shares of the
          Registrant&#146;s Common Stock as may become issuable as a result of any stock
          splits, stock dividends or similar events. </FONT></TD></TR>
<TR>
     <TD COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)&nbsp;&nbsp;&nbsp;
          Estimated solely for the purpose of calculating the registration fee pursuant to
          Rule 457(h) under the Securities Act, based on the average of the high and low
          trading prices of the Common Stock as reported on the New York Stock Exchange on
          April 20, 2005 of $27.71. </FONT></TD></TR>
<TR>
     <TD COLSPAN="5" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________</FONT></TD></TR>
</TABLE>
<BR>

<HR SIZE="1">
<PAGE>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INFORMATION REQUIRED
IN THE REGISTRATION STATEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Incorporation of Documents by Reference.</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following documents, which are on file (File No. 811-02736) with the Securities and
Exchange Commission (the &#147;SEC&#148;), are incorporated herein by reference and made a
part hereof: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Project" -->
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                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Annual Report on Form N-CSR of Petroleum &amp; Resources Corporation (the
                    &#147;Company&#148;) for the year ended December 31, 2004; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Project" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    The description of the Company&#146;s Common Stock, par value $1.00 per share,
                    which is incorporated by reference to Exhibit A to the Company&#146;s
                    Registration Statement on Form 8-A as filed with the SEC on November&nbsp;5,
                    1986, as updated in Amendment No.&nbsp;14 to the Company&#146;s Registration
                    Statement on Form N-2 as filed with the SEC on March&nbsp;30, 1992, including any
                    amendment or report filed for the purpose of updating such description. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
documents subsequently filed by the Company pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Exchange Act, prior to the filing of a post-effective amendment which
indicates that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated herein by reference
and be a part hereof from the date of filing of such documents. Any statement contained in
a document incorporated or deemed to be incorporated herein by reference shall be deemed
to be modified or superseded for purposes of this registration statement to the extent
that a statement contained herein or in any other subsequently filed document which also
is or is deemed to be incorporated by reference herein modifies or supersedes that
statement. Any such statement so modified or superseded shall not constitute a part of
this registration statement, except as so modified or superseded. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Description of Securities.</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Item is not applicable.</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interests of Named Experts and Counsel.</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lawrence
L. Hooper, Jr., Esq., who has passed upon the legality of any newly issued shares of the
Company&#146;s Common Stock covered by this Registration Statement, is Vice President,
General Counsel and Secretary of the Company. Lawrence L. Hooper, Jr., Esq. is eligible to
receive awards under the Company&#146;s 2005 Equity Incentive Compensation Plan and owns,
or has the right to acquire, a number of shares of the Company&#146;s Common Stock which
represents less than 1% of the total outstanding shares of the Company&#146;s Common
Stock. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II &#150; 1 </FONT></P>


<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Indemnification of Directors and Officers.</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Maryland
General Corporation Law (the &#147;MGCL&#148;) permits a Maryland corporation to include
in its charter a provision limiting the liability of its directors and officers to the
corporation and its stockholders for money damages except for liability resulting from
(a)&nbsp;actual receipt of an improper benefit or profit in money, property or services or
(b)&nbsp;active and deliberate dishonesty established by a final judgment as being
material to the cause of action. Article ELEVENTH of the Articles of Incorporation of the
Company, as amended (the &#147;Charter&#148;), contains such a provision which eliminates
such liability to the fullest extent permitted by applicable law. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article
TWELFTH of the Charter and Article 5 of the By-Laws of the Company, as amended (the
&#147;By-Laws&#148;), generally obligate the Company, to the fullest extent permitted by
applicable law, including the MGCL and the Investment Company Act of 1940, as amended, to
indemnify and pay or reimburse expenses incurred by any person who was or is involved in
any manner, or is threatened to made so involved, in any proceeding by reason of the fact
that such person (a)&nbsp;is or was a director or officer, or, at the option of the Board
of Directors in any particular case, an employee or agent of the Company or
(b)&nbsp;serves or served at the request of the Company any other enterprise as a
director, officer, partner or trustee, or, at the option of the Board of Directors in any
particular case, an employee or agent. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
MGCL requires a corporation (unless its charter provides otherwise, which the Charter does
not) to indemnify a director or officer who has been successful, on the merits or
otherwise, in the defense of any proceeding to which he or she is made a party by reason
of his or her service in that capacity. The MGCL permits a corporation to indemnify its
present and former directors and officers, among others, against judgments, penalties,
fines, settlements and reasonable expenses actually incurred by them in connection with
any proceeding to which they may be made a party by reason of their service in those or
other capacities unless it is established that (a)&nbsp;the act or omission of the
director or officer was material to the matter giving rise to the proceeding and
(i)&nbsp;was committed in bad faith or (ii)&nbsp;was the result of active and deliberate
dishonesty, (b)&nbsp;the director or officer actually received an improper personal
benefit in money, property or services or (c)&nbsp;in the case of any criminal proceeding,
the director or officer had reasonable cause to believe that the act or omission was
unlawful. However, under the MGCL, a Maryland corporation may not indemnify for an adverse
judgment in a suit by or in the right of the corporation or for a judgment of liability on
the basis that personal benefit was improperly received, unless in either case a court
orders indemnification and then only for expenses. In addition, the MGCL permits a
corporation to advance reasonable expenses to a director or officer upon the
corporation&#146;s receipt of (a)&nbsp;a written affirmation by the director or officer of
his or her good faith belief that he or she has met the standard of conduct necessary for
indemnification by the corporation and (b)&nbsp;a written undertaking by him or her or on
his or her behalf to repay the amount paid or reimbursed by the corporation if it shall
ultimately be determined that the standard of conduct was not met. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s directors and officers are insured against certain liabilities for actions
taken in such capacities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II &#150; 2 </FONT></P>


<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Exemption from Registration Claimed.</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Item is not applicable.</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Exhibits.</I> </FONT> </H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4-a  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Articles of Incorporation of the Company, as amended.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4-b  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> By-Laws of the Company, as amended.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4-c  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Petroleum &amp; Resources Corporation
2005 Equity Incentive Compensation Plan, included as Appendix A to
the Company&#146;s Proxy Statement for its 2005 Annual Meeting of Stockholders, is hereby
incorporated by reference.  </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Opinion of Lawrence L. Hooper, Jr.
as to the legality of any newly issued shares of
                         Common Stock of the Company covered by this registration statement.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23-a  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Consent of PricewaterhouseCoopers LLP,
 an independent registered public accounting
firm. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23-b </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Consent of Chadbourne &amp; Parke LLP.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23-c  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Consent of Lawrence L. Hooper, Jr.,
contained in his opinion filed as Exhibit 5 to
                         this registration statement.</FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24  </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;  </FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Powers of Attorney
authorizing certain persons to sign this registration statement
on behalf of certain directors and officers of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Undertakings.</I> </FONT> </H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A.&nbsp;&nbsp;&nbsp;&nbsp;
          The Company hereby undertakes: </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;
               To file, during any period in which offers or sales are being made, a
               post-effective amendment to this registration statement: (i)&nbsp;to include any
               prospectus required by Section 10(a)(3) of the Securities Act; (ii)&nbsp;to
               reflect in the prospectus any facts or events arising after the effective date
               of this registration statement (or the most recent post-effective amendment
               thereof) which, individually or in the aggregate, represent a fundamental change
               in the information set forth in this registration statement; and (iii)&nbsp;to
               include any material information with respect to the plan of distribution not
               previously disclosed in this registration statement or any material change to
               such information in this registration statement; provided, however, that clauses
               (i) and (ii) do not apply if the information required to be included in a
               post-effective amendment by those clauses is contained in periodic reports filed
               with or furnished to the Commission by the Company pursuant to Section 13 or
               15(d) of the Exchange Act that are incorporated by reference in this
               registration statement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II &#150; 3 </FONT></P>


<HR SIZE="1">
<PAGE>



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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;
               That, for the purpose of determining any liability under the Securities Act,
               each such post-effective amendment shall be deemed to be a new registration
               statement relating to the securities offered therein, and the offering of such
               securities at that time shall be deemed to be the initial <I>bona</I>
               <I>fide</I> offering thereof. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;
               To remove from registration by means of a post-effective amendment any of the
               securities being registered which remain unsold at the termination of the
               offering. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;
               That, for purposes of determining any liability under the Securities Act, each
               filing of the Company&#146;s annual report pursuant to Section 13(a) or 15(d) of
               the Exchange Act that is incorporated by reference in this registration
               statement shall be deemed to be a new registration statement relating to the
               securities offered therein, and the offering of such securities at that time
               shall be deemed to be the initial <I>bona</I> <I>fide</I> offering thereof. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.&nbsp;&nbsp;&nbsp;&nbsp;
          Insofar as indemnification for liabilities arising under the Securities Act may
          be permitted to directors, officers and controlling persons of the Company
          pursuant to the foregoing provisions, or otherwise, the Company has been advised
          that in the opinion of the Commission such indemnification is against public
          policy as expressed in the Securities Act and is, therefore, unenforceable. In
          the event that a claim for indemnification against such liabilities (other than
          the payment by the Company of expenses incurred or paid by a director, officer
          or controlling person of the Company in the successful defense of any action,
          suit or proceeding) is asserted by such director, officer or controlling person
          in connection with the securities being registered, the Company will, unless in
          the opinion of its counsel the matter has been settled by controlling precedent,
          submit to a court of appropriate jurisdiction the question whether such
          indemnification by it is against public policy as expressed in the Securities
          Act and will be governed by the final adjudication of such issue. </FONT></P>

<BR><BR><BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II &#150; 4 </FONT></P>


<HR SIZE="1">
<PAGE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing on Form S-8
and has duly caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Baltimore, State of Maryland on the
27th day of April, 2005. </FONT></P>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER" WIDTH="46%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT" WIDTH="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By</FONT></TD>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/s/ LAWRENCE L. HOOPER, JR.</FONT><BR>
<HR SIZE="1" WIDTH="85%" ALIGN="Left" COLOR="Gray"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Lawrence L. Hooper, Jr.)<BR></FONT></TD>
</TR></TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been
signed on the 27th day of April, 2005 by the following
persons in the capacities indicated: </FONT></P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="CENTER" WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Signature</U> </FONT> </TD>
<TD ALIGN="LEFT" WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title</U> </FONT> <BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ENRIQUE R. ARAC*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PHYLLIS O. BONANNO*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DANIEL E. EMERSON*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THOMAS H. LENAGH*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>W.D. MACCALLAN*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KATHLEEN T. MCGAHRAN*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DOUGLAS G. OBER*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board, Chief Executive Officer
(principal executive officer) and a Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>JOHN J. ROBERTS*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SUSAN C. SCHWAB*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ROBERT J.M. WILSON*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MAUREEN A. JONES*</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Vice President,
Chief Financial Officer and Treasurer (principal financial and accounting officer)</FONT><BR><BR></TD>
</TR>
</TABLE>

<TABLE WIDTH=100% CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* By</FONT></TD>
<TD ALIGN="LEFT" WIDTH="95%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/s/ LAWRENCE L. HOOPER, JR. </FONT><BR>
<HR SIZE="1" WIDTH="45%" ALIGN="Left" COLOR="Gray"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Lawrence L.
Hooper, Jr., Attorney-in-fact)**</FONT><BR><BR></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>**&nbsp;&nbsp;By authority of the powers of
attorney filed herewith. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II &#150; 5 </FONT></P>


<HR SIZE="1">
<PAGE>




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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT INDEX </FONT></H1>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="Center" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Exhibit</B><BR><U><B>Number</B></U> </FONT> <BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR><U><B>Page</B></U> </FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT" WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4-a</FONT></TD>
<TD ALIGN="LEFT" WIDTH="74%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Articles of Incorporation of the Company, as amended.
</FONT><BR><BR></TD>
<TD ALIGN="LEFT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4-b</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By-Laws of the Company, as amended.
</FONT><BR><BR></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Opinion of Lawrence L. Hooper, Jr. as to the
legality of any newly issued shares of Common Stock of the Company covered by this registration statement.
</FONT><BR><BR></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23-a</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent of PricewaterhouseCoopers LLP,
an independent registered public accounting firm.
</FONT><BR><BR></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23-b</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent of Chadbourne &amp; Parke LLP.
</FONT><BR><BR></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23-c</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent of Lawrence L. Hooper, Jr.,
contained in its opinion filed as Exhibit 5 to this registration statement.
</FONT><BR><BR></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Powers of Attorney authorizing certain
persons to sign this registration statement on behalf of certain directors and officers of the Company.
</FONT><BR><BR></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<FILENAME>petros80405ex4a.htm
<DESCRIPTION>EXHIBIT 4-A
<TEXT>
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     <TITLE>Exhibit 4-a</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 4-a &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLES OF INCORPORATION<BR>
OF <BR>PETROLEUM &amp; RESOURCES CORPORATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:&nbsp;&nbsp;
THE UNDERSIGNED, J. G. Whitney, whose post-office address is 201 North Charles Street,
Baltimore, Maryland 21201, being at least eighteen years of age, does, under and by virtue
of the General Laws of the State of Maryland authorizing the formation of corporations,
hereby act as incorporator with the intention of forming a corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:&nbsp;&nbsp;The name of the Corporation is Petroleum &amp; Resources Corporation.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:&nbsp;&nbsp;
The purposes for which the Corporation is formed are to conduct, operate and carry on the
business of an investment company, to acquire by purchase, subscription, contract or
otherwise, and to invest in, hold for investment or otherwise, to sell or exchange or
contract to sell or exchange, to mortgage, pledge or otherwise dispose of or turn to
account or realize upon, and generally to deal in and with, all forms of securities, and
to do any and all acts and things for the preservation, protection, improvement and
enhancement in value of any or all such securities or evidences of interest therein; to
exercise any and all rights, powers and privileges of individual ownership or interest in
respect of any and all such securities or evidences of interest therein, including the
right to vote thereon and to consent and otherwise act with respect thereto, and to engage
in any lawful act or activity for which corporations may be organized under the General
Corporation Law of Maryland. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH:&nbsp;&nbsp;
The post-office address of the principal
office of the Corporation in this State is 201 North
Charles Street, Baltimore, Maryland, 21201.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH:&nbsp;&nbsp;
The name and post-office address of the resident
agent of the Corporation are Robert J. M. Wilson, 201
North Charles Street, Baltimore, Maryland 21201.  Said resident agent is a citizen of the State of Maryland and
resides therein.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH:&nbsp;&nbsp;
The total number of shares of stock which the Corporation shall have authority to issue is
8,500,000 shares with an aggregate par value of $32,500,000, divided into two classes
consisting of (a) 1,000,000 shares of Convertible Preferred Stock of the par value of $25
each, and (b) 7,500,000 shares of Common Stock of the par value of $1 each. </FONT></P>


<HR SIZE="1">
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a description of each class of stock which the Corporation is authorized to
issue and a statement of the designations, preferences and relative, participating,
optional or other special rights, and the qualifications, limitations and restrictions
thereof granted to or imposed upon the shares of each class. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance
of Convertible Preferred Stock in Series</U>. &nbsp;&nbsp;(a)&nbsp;&nbsp;Subject to the provisions of
Section 3(g) of this Article Sixth, the shares of Convertible Preferred Stock
may be issued from time to time as shares of one or more series of
Convertible Preferred Stock, and the Board of Directors is expressly
authorized, prior to issuance, in the resolution or resolutions providing
for the issue of shares of each particular series, to fix the following: </FONT> </P>



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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
               The distinctive serial designation and number of shares which shall constitute
               such series, which number may be increased or decreased (but not below the
               number of shares thereof then outstanding) from time to time by like action of
               the Board of Directors; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;
               The annual dividend rate for such series and the times of payment of dividends; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;
               The redemption provisions (including the date or dates upon or after which the
               shares shall be redeemable) and the redemption price or prices for such series;
               and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;
               The terms and conditions (with or without limitations) on which shares of such
               series shall be convertible into, or exchangeable for, shares of stock of any
               other class or classes or series thereof including the price or prices or the
               rate or rates and the time or times of conversion or exchange and the terms and
               conditions of adjustment thereof, if any. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;       All
shares of Convertible Preferred Stock, regardless of series, shall be of
               equal rank with each other and there shall be no preference or priority of
one                series over any other series upon any distribution of assets or in
respect of                the payment of dividends. All shares of Convertible Preferred
Stock shall be                identical with each other in all respects except as
provided in or permitted by                Section 1(a) of this Article Sixth; and the
shares of Convertible Preferred                Stock of any one series shall be identical
with each other in all respects                except as to dates from and after which
dividends thereon shall be cumulative.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Dividends</U>.&nbsp;&nbsp;
(a) &nbsp;&nbsp;The holders of Convertible Preferred Stock of each series                shall be
entitled to receive, when and as declared by the Board of Directors,                but
only out of funds legally available for the payment of dividends, cumulative
               cash </FONT></P>


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<HR SIZE="1">
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>dividends (which shall be cumulative whether or not in any dividend
period                or periods there shall be surplus available for the payment of such
dividends)                at the annual rate for such series and at such times as fixed
by the Board of                Directors in accordance with Section 1 of this Article
Sixth in respect of such                series, and no more; provided that if dividends
on any shares of Convertible                Preferred Stock shall be cumulative from a
date less than thirty days prior to                the first dividend payment date after
issuance of such shares, the dividend for                such first dividend period shall
not be payable on such first dividend payment                date but shall be payable on
the next dividend payment date. Such dividends                shall be cumulative from
the dividend payment date next preceding the date of                issue of such shares
to which dividends have been paid, unless no dividends have                been paid,
then from the date of original issue of such shares or the shares in
               exchange for which such shares were issued and unless the date of issue of
such                shares is a dividend payment date or is a date after the record date
for a                determination of holders of shares of such series entitled to
receive a dividend                and before such dividend payment date, in either of
which events such dividends                shall be cumulative from such dividend payment
date, <U>provided</U>, <U>however</U>, that if dividends shall not be paid to that
dividend payment                date, then dividends shall be cumulative from the
dividend payment date to which                dividends have been paid or, if no
dividends have been paid, to the date of                original issue of such shares or
the shares in exchange for which such shares                were issued. In case
cumulative dividends are not paid in full, the shares of                all series of
Convertible Preferred Stock shall participate ratably in the                payment of
dividends (including accumulations, if any), in proportion to the                amounts
which would be payable on said shares if all cumulative dividends had                been
declared and paid in full. The holders of shares of Convertible Preferred
               Stock shall not be entitled to receive any dividends thereon other than
the                dividends referred to in this Section 2.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;  No
dividends shall be paid, or declared or set apart for payment, on any share
               of Convertible Preferred Stock of any series for any dividend period
unless at                or prior to such time a dividend for each dividend period
terminating on the                same or any earlier date shall have been paid, or
declared and set apart for                payment, ratably in proportion to the
respective annual dividend rates fixed                therefor, on all shares of
Convertible Preferred Stock of all series then issued                and outstanding.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;   So
long as any shares of Convertible Preferred Stock are outstanding, no
               dividend (except a dividend payable in Common Stock) whatever shall be
paid or                declared at any time, and no distribution declared or made, on any
Common Stock                nor shall any shares of Common Stock be purchased or
otherwise acquired for                value at any time by the Corporation or any
subsidiary:  </FONT></P>


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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;
               unless all dividends on the Convertible Preferred Stock of all series for all
               past dividend periods and for the then current dividend period (other than the
               first dividend period for any shares if the dividend on such shares for such
               period </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></P>


<HR SIZE="1">
<PAGE>


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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>shall not
                then be payable pursuant to the provisions of this Section 2)
               shall have been paid, or declared and set apart for payment, in full; and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;
               unless at the time of the declaration of such dividend or distribution on the
               Common Stock or purchase of Common Stock, the Convertible Preferred Stock shall
               have an asset coverage (as hereinafter defined) of at least 200% after deducting
               the amount of such dividend, distribution or purchase price, as the case may be. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Redemption
and Acquisition</U>.&nbsp;&nbsp; (a) &nbsp;&nbsp;The Corporation at its option (expressed                by
resolution of its Board of Directors) may (except as otherwise provided by
               the Board of Directors in accordance with Section 1 of this Article Sixth
in                respect of any series) redeem the outstanding shares of Convertible
Preferred                Stock, or of any one or more series thereof, at any time in
whole, or from time                to time in part, upon notice duly given as hereinafter
specified, at the                applicable redemption price or prices for such shares
(as fixed in accordance                with Section 1 of this Article Sixth in respect of
any series), including, in                each case, an amount equal to all accrued and
unpaid dividends thereon to the                date fixed for redemption; <U>provided</U>,
<U>however</U>, that if and so long                as all dividends on the Convertible
Preferred Stock of all series for all past                dividend periods and the then
current dividend period shall not have been paid,                or declared and set
apart for payment, the Corporation shall not redeem less                than all of the
shares of Convertible Preferred Stock at the time outstanding,                and neither
the Corporation nor any subsidiary of the Corporation shall purchase                or
otherwise acquire for value any of the shares of Convertible Preferred Stock
               at the time outstanding.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;   &nbsp;&nbsp;   Notice
of every such redemption of Convertible Preferred Stock of any series
               shall be given in accordance with the applicable provisions of the
Investment                Company Act of 1940 and the rules and regulations of the
Securities and Exchange                Commission thereunder as in effect at the time
such notice is given and (i) if                all the shares of such series are held of
record by not more than 100 holders,                shall be given by mailing such notice
not less than 30 days nor more than 60                days prior to the date fixed for
such redemption to each holder of record of                shares of such series so to be
redeemed at his address as the same shall appear                on the books of the
Corporation, or (ii) if the shares of such series are held                of record by
more than 100 holders, shall be given by publication at least once                in each
of two successive calendar weeks in a newspaper printed in the English
               language and customarily published on each business day and of general
               circulation in the Borough of Manhattan, the City and State of New York,
the                first publication to be not less than 30 days nor more than 60 days
prior to the                date fixed for such redemption, and notice of such redemption
shall also be                mailed not less than 30 days nor more than 60 days prior to
the date fixed for                such redemption to each holder of record of shares of
such series so to be                redeemed at his address as the same shall appear on
the books of the                Corporation; <U>provided</U>, <U>however</U>, that
neither failure to mail any                such notice nor any </FONT></P>

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<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>defect therein or in the
mailing thereof shall affect the                validity of the proceeding for the
redemption of any shares so to be redeemed as                to which a notice was
properly mailed.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;  &nbsp;&nbsp;     In
the case of any redemption of a part only of the Convertible Preferred Stock
               of any series at the time outstanding, the redemption may (subject to any
               provisions made by the Board of Directors in accordance with Section 1 of
this                Article Sixth in respect of any series) be either pro rata or by lot,
as                determined by the Board of Directors.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp; &nbsp;&nbsp;        If
any such notice of redemption shall have been duly given and if, on or before
               the redemption date specified therein, all funds necessary for such
redemption                shall have been set aside by the Corporation, separate and
apart from its other                funds, in trust for the pro rata benefit of the
holders of the shares so called                for redemption, so as to be and continue
to be available therefor, then,                notwithstanding that any certificate for
shares so called for redemption shall                not have been surrendered for
cancellation, all shares so called for redemption                shall no longer be
deemed outstanding on and after such redemption date, and the                right to
receive dividends thereon and all other rights with respect to such                shares
shall forthwith on such redemption date cease and terminate, except only
               the rights of the holders thereof to receive the amount payable on
redemption                thereof, without interest, and the right to exercise, until the
close of                business on the date fixed for redemption, all privileges of
conversion or                exchange, if any, not theretofore expired.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;    If
any such notice of redemption shall have been duly given or if the
               Corporation shall have given to the bank or trust company hereinafter
referred                to irrevocable written authorization promptly to give or complete
such notice,                and if on or before the redemption date specified therein all
funds necessary                for such redemption shall have been deposited by the
Corporation with a bank or                trust company, designated in such notice,
organized under the laws of the United                States of America or the State of
New York, doing business in the Borough of                Manhattan, City and State of
New York and with combined capital and surplus of                not less than
$50,000,000, in trust for the pro rata benefit of the holders of                the
shares so called for redemption, then notwithstanding that any certificate
               for shares so called for redemption shall not have been surrendered for
               cancellation, from and after the time of such deposit all shares so called
for                redemption shall no longer be deemed to be outstanding and all rights
with                respect to such shares shall forthwith cease and terminate, except
only the                right of the holders thereof to receive from such bank or trust
company at any                time after the time of such deposit the funds so deposited,
without interest,                and the right to exercise, until the close of business
on the date fixed for                redemption, all privileges of conversion or
exchange, if any, not theretofore                expired. Any interest accrued on such
funds shall be paid to the Corporation                from time to time.  </FONT></P>

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<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;  &nbsp;&nbsp;  Any
funds so set aside or deposited, as the case may be, and unclaimed at the
               end of four years from such redemption date shall be released or repaid to
the                Corporation, after which the holders of the shares so called for
redemption                shall look only to the Corporation for the payment thereof,
provided that any                funds so set aside or deposited which shall not be
required for redemption                because of the exercise of any privilege of
conversion or exchange subsequent to                the date of setting aside or deposit,
as the case may be, shall be released or                repaid to the Corporation
forthwith.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp; &nbsp;&nbsp;   Shares
of Convertible Preferred Stock of any series which have been issued and
               have been subsequently acquired by the Corporation through conversion or
by                redemption shall be retired and cancelled and shall not be reissued.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<U>Action
by Corporation Requiring Approval of Convertible Preferred Stock</U>. &nbsp;&nbsp;(a)&nbsp;&nbsp;
Subject to the provisions of Sections 4(b) and 4(c), the consent of the
               holders of not less than a majority of the shares of Convertible Preferred
Stock                at the time outstanding, given in person or by proxy, either in
writing or at                any special or annual meeting called for the purpose, shall
be necessary to                permit, effect or validate any one or more of the
following:  </FONT></P>



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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
                any increase in the number of authorized shares of Convertible Preferred Stock
               or the authorization or issuance of any series (other than the initial series)
               of Convertible Preferred Stock or the authorization of, or any increase in the
               number of authorized shares of, any class of stock ranking on a parity with the
               Convertible Preferred Stock; or </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;
               any plan of reorganization, within the meaning of the Investment Company Act of
               1940, adversely affecting such shares; or </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;
               any action requiring a vote of security holders of the Corporation as in Section
               13(a) of that Act provided. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provisions of Sections 4(a) (ii) and 4(a) (iii) shall remain in effect notwithstanding the
amendment or repeal of the Investment Company 4ct of 1940. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp; &nbsp;&nbsp;     Subject
to the provisions of Section 4(c), the consent of the holders of not                less
than two-thirds of the shares of Convertible Preferred Stock at the time
               outstanding, given in person or by proxy, either in writing or at any
special or                annual meeting called for the purpose, shall be necessary to
permit, effect or                validate any one or more of the following:  </FONT></P>



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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
               the amendment, alteration or repeal of any of the provisions of the Articles of
               Incorporation or of the By-Laws of the Corporation which would affect</FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></P>


<HR SIZE="1">
<PAGE>

 <!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>materially
               and adversely any preference or relative, participating, optional or other
               special right, qualification, limitation or restriction of the Convertible
               Preferred Stock; provided, however, that if any such amendment, alteration or
               repeal would affect materially and adversely any preference or relative,
               participating, optional or other special right, qualification, limitation or
               restriction of one or more, but not all, of the series of Convertible Preferred
               Stock at the time outstanding, the consent of the holders of at least two-thirds
               of the outstanding shares of each such series so affected, similarly given,
               shall be required in lieu of (or if required by law, in addition to) the consent
               of the holders of two-thirds of the shares of Convertible Preferred Stock as a
               class; or </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;
               the authorization of, or any increase in the number of authorized shares of, any
               class of stock ranking prior to the Convertible Preferred Stock. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp; &nbsp;&nbsp;   No
consent of the holders of Convertible Preferred Stock or of any series
               thereof which would otherwise be required to permit, effect or validate
any                action of the Corporation pursuant to the provisions of this Section 4
shall be                required if, prior to or concurrently with such action, provision
shall be made,                in accordance with the provisions of Section 3 of this
Article Sixth, for the                redemption of all outstanding shares of Convertible
Preferred Stock or all                outstanding shares of such series, as the case may
be, and all funds necessary                for such redemption shall be deposited in
trust in accordance with the                provisions of Section 3(e) of this Article
Sixth.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<U>Voting
Rights</U>. &nbsp;&nbsp;(a)&nbsp;&nbsp; Except as required by law or as otherwise specifically
               provided in this Section 5, the holders of shares of Convertible Preferred
Stock                and the holders of Common Stock shall vote together as one class on
all matters                voted upon by stockholders other than those matters which
require approval of                the holders of shares of Convertible Preferred Stock
pursuant to the provisions                of Section 4 of this Article Sixth. Each holder
of record of Convertible                Preferred Stock shall be entitled to one vote for
each share of Convertible                Preferred Stock standing in his name on the
books of the Corporation, and each                holder of record of Common Stock shall
be entitled to one vote for each share of                Common Stock standing in his
name on the books of the Corporation.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;      Except
as provided in Section 5(c), at each annual meeting of stockholders of                the
Corporation and at all other meetings of stockholders at which directors are
               to be elected (excepting elections to fill vacancies), the holders of
               Convertible Preferred Stock, voting separately as a class, shall be
entitled to                elect two members of the Board of Directors of the Corporation
and the holders                of Common Stock, voting separately as a class, shall be
entitled to elect the                balance of the members of the Board of Directors of
the Corporation.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></P>


<HR SIZE="1">
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp; &nbsp;&nbsp;  If
at any time dividends on the outstanding shares of the Convertible Preferred
               Stock shall be unpaid in an amount equal to two full years&#146; dividends,
a                special meeting of stockholders shall be called and held as soon
thereafter as                practicable and at such meeting and at all subsequent
meetings of stockholders                at which directors are to be elected (excepting
elections to fill vacancies),                the holders of Convertible Preferred Stock
shall have the right, voting                separately as a class, to elect the smallest
number of directors which shall                constitute a majority of the members of
the Board of Directors of the                Corporation, and the holders of Common
Stock, voting separately as a class,                shall have the right to elect the
balance of the members of the Board of                Directors of the Corporation. The
term of office of each director in office at                the time directors are
elected at such special meeting shall then cease unless                he is then
reelected. If the Corporation thereafter shall pay, or declare and                set
apart for payment, in full all dividends payable on all outstanding shares
               of Convertible Preferred Stock for all past dividend periods, the voting
rights                stated in the first sentence of this Section 5(c) shall cease, and
a special                meeting of stockholders shall be called and held as soon
thereafter as                practicable and at such meeting and at all subsequent
meetings of stockholders                at which directors are to be elected (excepting
elections to fill vacancies),                the holders of Convertible Preferred Stock
and Common Stock shall have the right                to elect the members of the Board of
Directors as stated in Section 5(b),                subject to the revesting of the
rights of such holders as provided in the first                sentence of this Section
5(c) in the event of any subsequent default in the                payment of two full
years&#146; dividends on the Convertible Preferred Stock.                The term of
office of each director in office at the time directors are elected                at the
last mentioned special meeting shall then cease unless he is then
               reelected.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp; &nbsp;&nbsp;       Any
vacancy in the office of any director elected by the holders of Convertible
               Preferred Stock may be filled by the remaining directors so elected or by
the                remaining director so elected if only one or, if not so filled, by the
holders                of Convertible Preferred Stock at any meeting of stockholders for
the election                of directors held thereafter, and any vacancy in the office
of any director                elected by the holders of Common Stock may be filled by
the remaining directors                so elected or by the remaining director so elected
if only one or, if not so                filled, by the holders of Common Stock at such
meeting.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp; &nbsp;&nbsp;      Notwithstanding
the provisions of Article Tenth of the Articles of Incorporation                of the
Corporation, directors elected by the holders of Convertible Preferred
               Stock pursuant to the provisions of this Section 5 may be removed from
office                only by the vote of the holders of a majority of the outstanding
shares of                Convertible Preferred Stock, voting separately as a class, at a
meeting of                stockholders of the Corporation called for this purpose. The
holders of                Convertible Preferred Stock shall have no right to vote upon
the removal of                directors elected by the holders of Common Stock pursuant
to the provisions of                this Section 5.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></P>


<HR SIZE="1">
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<U>Liquidation
of the Corporation</U>. &nbsp;&nbsp;The holders of Convertible Preferred                Stock of each
series shall be entitled to receive $25 per share in case of any
               involuntary, and the redemption price at the time in effect in the event
of any                voluntary, liquidation, dissolution or winding up of the
Corporation plus in                each case all accrued and unpaid dividends computed to
the date fixed for the                payment of such distributive amounts out of the
assets of the Corporation,                before any distribution or payment shall be
made to the holders of Common Stock;                and the holders of Common Stock shall
be entitled, to the exclusion of the                holders of the Convertible Preferred
Stock of any and all series, to share                ratably in all the remaining assets
of the Corporation in accordance with their                respective rights. If upon any
liquidation, dissolution or winding up of the                Corporation, whether
voluntary or involuntary, the assets available for                distribution shall be
insufficient to pay in full the amounts so payable to the                holders of
Convertible Preferred Stock, all the shares of Convertible Preferred                Stock
of all series shall participate ratably in any distribution of assets in
               proportion to the amounts which would be payable on such distribution if
all                amounts payable were paid in full. Neither the consolidation or merger
of the                Corporation with or into any other corporation, nor any sale, lease
or                conveyance of all or any part of the property or business of the
Corporation,                shall be deemed to be a liquidation, dissolution or winding
up of the                Corporation within the meaning of this Section&nbsp;6.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.&nbsp;&nbsp;
For all purposes of this Article Sixth:  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;accrued and unpaid dividends&#148; when used with reference to any share of any
series of Convertible Preferred Stock shall mean an amount computed at the annual dividend
rate for the shares of such series from the date on which dividends on such share become
cumulative to and including the date to which such dividends are to be accrued (including
an amount equal to a dividend at such rate for the elapsed portion of the current dividend
period), less the aggregate amount of all dividends theretofore paid, or declared and set
apart for payment, on such share; but no interest shall be payable upon any arrearages. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;asset coverage&#148; shall mean the ratio which the &#147;value&#148; (as
defined in Section 2(a)(41)(B) of the Investment Company Act of 1940) of the total assets
of the Corporation, less all liabilities and indebtedness not represented by senior
securities (as defined in that Act), bears to the aggregate amount of &#147;senior
securities representing indebtedness&#148; (as defined in that Act) of the Corporation
plus the aggregate of the involuntary liquidation preference of the Convertible Preferred
Stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;Investment Company Act of 1940&#148; shall mean that Act as it is in effect on
the date this Article Sixth shall become effective. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9</FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;stock ranking on a parity with the Convertible Preferred Stock&#148; shall mean
any stock of the Corporation, hereafter authorized, which has preference on a parity with
the Convertible Preferred Stock either in the payment of dividends or in the distribution
of assets upon any liquidation, dissolution or winding up of the Corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term &#147;stock ranking prior to the Convertible Preferred Stock&#148; shall mean any
stock of the Corporation, hereafter authorized, which has preference over the Convertible
Preferred Stock either in the payment of dividends or in the distribution of assets upon
any liquidation, dissolution or winding up of the Corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTH:&nbsp;&nbsp;
The number of directors of the Corporation shall be seven, which number may be increased
or decreased pursuant to the by-laws of the Corporation and shall never be less than
three. The names of the directors who shall act until the first annual meeting and until
their successors are duly chosen and qualify are: </FONT></P>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="15%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT" WIDTH="35%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>George E. Clark<BR>
Sylvan C. Coleman<BR>W. D. MacCallan <BR>W. Perry Neff</FONT></TD>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>William H. Patterson<BR>
John C. Prizer, Jr.<BR>Robert J. M. Wilson</FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTH:&nbsp;&nbsp;
The Board of Directors may issue any shares of the authorized but unissued common stock,
or securities convertible into shares of common stock, of the Corporation, or may dispose
of any shares of the issued common stock of the Corporation acquired by the Corporation
and held in its treasury or any securities of the Corporation convertible into shares of
its common stock, at any time or from time to time, in such manner and for such
consideration as said Board of Directors in their sole and uncontrolled discretion may
deem proper, and no holder of shares of stock or other securities of the Corporation shall
be entitled as a matter of right to subscribe for or purchase or receive any part of any
new or additional issue of shares of stock or other securities of the Corporation, whether
now or hereafter authorized or whether issued for money or for a consideration other than
money. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH:&nbsp;&nbsp;
The by-laws may be adopted, amended or repealed by vote of the stockholders or by the
Board of Directors upon the affirmative vote of a majority of the entire Board, but any
by-law adopted by the Board of Directors may be amended or repealed by the stockholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TENTH:&nbsp;&nbsp;
Notwithstanding any provision of law requiring any action to be taken or authorized by the
affirmative vote of the holders of a majority or other designated proportion of the
shares, such action may be taken or authorized by the affirmative vote of the holders of a
majority of the total number of shares outstanding and entitled to vote thereon. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the undersigned incorporator of Petroleum &amp; Resources Corporation who
executed the foregoing Articles of Incorporation hereby acknowledges the same to be his
act and further acknowledges that, to the best of his knowledge, the matters and facts set
forth therein are true in all material respects under the penalties of perjury. </FONT></P>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="Center" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"  WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/  J. G. WHITNEY
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><HR SIZE="1" WIDTH="90%" COLOR="Black" ALIGN="Left"></TD>
</TR>
</TABLE>
<BR><BR><BR><BR>


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<HR SIZE="1">
<PAGE>




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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLES SUPPLEMENTARY <BR>
CREATING SERIES OF <BR>CONVERTIBLE PREFERRED STOCK <BR>OF <BR>PETROLEUM &amp; RESOURCES CORPORATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PETROLEUM
&amp; RESOURCES CORPORATION, a Maryland corporation having its principal office in
Baltimore City, Maryland (hereinafter called the &#147;Corporation&#148;), hereby
certifies to the State Department of Assessments and Taxation of Maryland that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:&nbsp;&nbsp;
Pursuant to authority expressly vested in the Board of Directors of the Corporation by
Article SIXTH of the charter of the Corporation, the Board of Directors has duly
classified 1,000,000 shares of the Convertible Preferred Stock of the Corporation, and has
provided for the issuance of the same, as &#147;$1.75 Convertible Preferred Stock&#148;,
having a par value of $25 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:&nbsp;&nbsp;
A description of the $1.75 Convertible Preferred Stock, including the preferences,
conversion and other rights, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemption, as set by the Board of Directors
is as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Dividends</U>.&nbsp;&nbsp;
The annual dividend rate for the shares of this series shall                be $1.75 a
share. Dividends at the annual rate shall be payable quarterly on the
               first day of each February, May, August and November.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Redemption
Prices</U>.&nbsp;&nbsp; The shares of this series may be redeemed at any time                in whole
or from time to time in part, by the Corporation pursuant to Section 3                of
Article Sixth of the Articles of Incorporation, as amended. The redemption
               price for any shares of this series which are redeemed pursuant to said
Section                3 shall be $27.00 per share if the date fixed for redemption is
not later than                June 30, 1978; $26.60 per share if the date fixed for
redemption is thereafter                but not later than June 30, 1979; $26.20 per
share if the date fixed for                redemption is thereafter but not later than
June 30, 1980; $25.80 per share if                the date fixed for redemption is
thereafter but not later than June 30, 1981,                $25.40 per share if the date
fixed for redemption is thereafter but not later                than June 30, 1982, and
$25.00 per share if the date fixed for redemption is on                or after July 1,
1982, plus, in each case, an amount equal to all accrued and                unpaid
dividends thereon to the date fixed for redemption.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></P>


<HR SIZE="1">
<PAGE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Conversion
Provisions</U>. &nbsp;&nbsp;(a)&nbsp;&nbsp; Shares of this series may, at the option of    the
holder, be converted into Common Stock of the Corporation (as such shares of
               Common Stock may be constituted on the conversion date) at the rate of
..9302                shares of Common Stock for each share of this series (equivalent to
a conversion                price of $26.875, with each share of this series having a
value upon conversion                of $25) which rate shall be subject to adjustment as
provided in subparagraphs                3(d) and 3(e) below (such rate as so adjusted
hereinafter called the                &#147;conversion rate&#148;); provided that, as to
any shares of this series                which shall have been called for redemption
pursuant to the provisions of                Section 3 of Article Sixth of the Articles
of Incorporation, as amended, the                conversion right shall terminate at the
close of business on the date fixed for                redemption, unless default shall
be made in the payment of the redemption price.                As used herein &#147;conversion
price&#148; at any time means $25 divided by the                then current &#147;conversion
rate&#148;.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;     The
holder of a share or shares of this series may exercise the conversion right
               as to any thereof by delivering to the Corporation during regular business
               hours, at the office of any transfer agent of the Corporation for the
shares of                this series or at such other place as may be designated by the
Corporation, the                certificate or certificates for the shares to be
converted, duly endorsed or                assigned in blank or to the Corporation (if
required by it), accompanied by                written notice stating that the holder
elects to convert such shares and stating                the name or names (with address)
in which the certificate or certificates for                Common Stock are to be
issued. Conversion shall be deemed to have been effected                on the date when
such delivery is made, and such date is referred to herein as                the &#147;conversion
date.&#148; As promptly as practicable thereafter the                Corporation shall
issue and deliver to or upon the written order of such holder,                at such
office or other place designated by the Corporation, a certificate or
               certificates for the number of full shares of Common Stock to which he is
               entitled and a check in respect of any fraction of a share as provided in
               subparagraph 3(c) below. The person in whose name the certificate or
               certificates for Common Stock are to be issued shall be deemed to have
become a                stockholder of record on the conversion date unless the transfer
books of the                Corporation are closed on that date, in which event he shall
be deemed to have                become a stockholder of record on the next succeeding
date on which the transfer                books are open, but the conversion rate shall
be that in effect on the                conversion date. No payment or adjustment shall
be made upon any conversion on                account of any dividends accrued on the
shares of this series surrendered for                conversion or on account of any
dividends on the Common Stock issued upon such                conversion.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp; &nbsp;&nbsp; The
Corporation shall not be required to issue any fraction of a share upon
               conversion of any share or shares of this series. If more than one share
of this                series shall be surrendered for conversion at one time by the same
holder, the                number of full shares of Common Stock issuable upon conversion
thereof shall be                computed on the basis of the total number of shares of
this series so                surrendered. If any fractional interest in a share of
Common Stock would be                deliverable upon conversion, the Corporation shall</FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></P>


<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>make payment therefor on the
 basis of the Net Asset Value per Share of
Common Stock as defined below in                subparagraph 3(d) (iii), as of the close
of business on a date not more than                seven days prior to the conversion
date.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;  &nbsp;&nbsp; The
conversion rate provided for in subparagraph 3(a) above shall be subject to
               the following adjustments, which shall be made to the nearest
one-thousandth of                a share of Common Stock:  </FONT></P>



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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;
               If the Corporation shall pay to the holders of its Common Stock a dividend in
               shares of Common Stock or in securities convertible into Common Stock, the
               conversion rate in effect immediately prior to the record date fixed for the
               determination of the holders of Common Stock entitled to such dividend shall be
               proportionately increased, effective at the opening of business on the first
               business day next following such record date, provided, however, that no
               adjustment of the conversion rate shall be made pursuant to the provisions of
               this subparagraph 3(d) (i) by reason of the issuance of shares of Common Stock
               in payment of dividends payable at the option of holders of Common Stock either
               in cash or in full shares of Common Stock. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;
               If the Corporation shall split the outstanding shares of its Common Stock into a
               greater number of shares or combine the outstanding shares of its Common Stock
               into a smaller number of shares, the conversion rate in effect immediately prior
               to such action shall be proportionately increased in the case of a split or
               decreased in the case of a combination, effective at the opening of business on
               the first business day next following the day such action becomes effective. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;
               If the Corporation shall issue or sell any shares of its Common Stock (other
               than shares of its Common Stock issued to the holders of its Common Stock as a
               dividend for which adjustment of the conversion rate is made pursuant to
               subparagraph 3(d) (i) or in connection with a split of its outstanding shares of
               Common Stock and other than shares of its Common Stock issued upon conversion of
               shares of this series) for a consideration per share less than the Net Asset
               Value per Share of Common Stock, the conversion rate in effect immediately prior
               to such issuance or sale shall be forthwith increased to an amount determined by
               multiplying such conversion rate by a fraction the numerator of which is the
               number of shares of Common Stock outstanding immediately after such issuance or
               sale and the denominator of which is the number of shares of Common Stock
               outstanding immediately prior to such issuance or sale plus the number of shares
               of Common Stock of the Corporation which the aggregate consideration received by
               the Corporation upon such issuance or sale would purchase at the Net Asset Value
               per Share of Common Stock at the time of such issuance or sale. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14</FONT></P>


<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the purposes of this subparagraph 3(d) (iii) the following provisions shall be applicable: </FONT></P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                (A)&nbsp;&nbsp;&nbsp;&nbsp;
               In the case of the issuance or sale of shares of Common Stock for cash, the
               consideration shall be deemed to be the cash proceeds received by the
               Corporation before deducting any discounts, commissions or other expenses
               incurred in connection therewith. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                (B)&nbsp;&nbsp;&nbsp;&nbsp;In the case of the issuance or sale of shares of Common Stock (otherwise than
               upon conversion or exchange of securities by their terms convertible or
               exchangeable into Common Stock) for a consideration other than cash, the amount
               of such consideration shall be deemed to be the fair value thereof as determined
               by the Board of Directors of the Corporation, irrespective of any accounting
               treatment. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                (C)&nbsp;&nbsp;&nbsp;&nbsp;
               In the case of the issuance of shares of Common Stock in payment of dividends
               payable at the option of holders of Common Stock either in cash or in full
               shares of Common Stock, the consideration shall be deemed to be the amount of
               cash which the Corporation would have paid in lieu of the shares of Common Stock
               so issued. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                (D)&nbsp;&nbsp;&nbsp;&nbsp;
               If the Corporation issues options or rights to purchase or subscribe for shares
               of its Common Stock or issues any other securities (other than the shares of
               this series) which are by their terms convertible into or exchangeable for
               shares of Common Stock and if the consideration per share of Common Stock
               deliverable upon the exercise of such options or rights or upon conversion or
               exchange of such securities, determined as provided below, is less than the Net
               Asset Value per Share of Common Stock at the time of issuance of such options,
               rights or securities: </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=12%></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;
               The aggregate number of shares of Common Stock deliverable under such options or
               rights shall be deemed to have been issued at the time such options or rights
               become exercisable, and for a consideration equal to the minimum purchase price
               provided for in such options or rights plus the consideration if any (determined
               in the manner provided for in clauses (A) and (B) above with respect to cash
               consideration and consideration other than cash) received by the Corporation for
               such options or rights; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=12%></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; II.&nbsp;&nbsp;&nbsp;&nbsp;
               The maximum number of shares of Common Stock initially deliverable upon
               conversion of or in exchange for any such convertible or exchangeable securities
               shall be deemed to have been </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></P>


<HR SIZE="1">
<PAGE>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=12%></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>issued at the time such securities become
               convertible or exchangeable, and for a consideration equal to the consideration
               received by the Corporation for such securities, before deducting any discounts,
               commissions or other expenses in connection with the issuance and sale of such
               securities, plus the additional consideration, if any, to be received by the
               Corporation upon the conversion or exchange thereof (the consideration in each
               case to be determined as provided in clauses (A) and (B) above with respect to
               cash consideration and consideration other than cash); and </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=12%></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                &nbsp;III.&nbsp;&nbsp;&nbsp;&nbsp;
               On the expiration of such options or rights, or the termination of such right to
               convert or exchange, the conversion rate shall forthwith be readjusted to such
               conversion rate as would have obtained at such expiration date had the
               adjustment made at the time such options, rights, or convertible or exchangeable
               securities became exercisable, convertible or exchangeable, as the case may be,
               been made upon the basis of the issuance of only the number of shares of Common
               Stock actually issued upon the exercise of such options or rights or upon the
               conversion or exchange of such securities. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=8%></TD>
               <TD WIDTH=92%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                        (E)&nbsp;&nbsp;&nbsp;&nbsp;
               As used in subparagraph 3(c) and in this subparagraph 3(d)(iii), the term Net
               Asset Value per Share of Common Stock means the lesser of (x) the total value of
               the Corporation&#146;s investments and other assets, as determined by the Board
               of Directors of the Corporation in accordance with Section 2(a)(41)(B) of the
               Investment Company Act of 1940, less the sum of its liabilities and the
               aggregate involuntary liquidation preference of the outstanding shares of
               Convertible Preferred Stock, divided by the number of outstanding shares of
               Common Stock and (y) the total value of the Corporation&#146;s investments and
               other assets, as determined by the Board of Directors of the Corporation in
               accordance with Section 2(a)(41)(B) of the Investment Company Act of 1940, less
               its liabilities, divided by the sum of the number of outstanding shares of
               Common Stock and the number of shares of Common Stock issuable upon conversion
               of outstanding shares of this series. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (iv)&nbsp;&nbsp;&nbsp;&nbsp;
               Whenever the Corporation shall declare a distribution payable to the holders of
               its Common Stock from net realized long-term capital gain on its investments
               which (together with all other distributions declared in such calendar year from
               net realized long-term capital gain) is in an amount in excess of 10% of the Net
               Asset Value Attributable to Common Stock on the preceding December 31, the
               conversion price in effect immediately prior to the record date fixed for the
               determination of the holders of Common Stock entitled to such dividend shall be
               decreased (and the conversion rate consequently increased) effective at the
               opening</FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16</FONT></P>


<HR SIZE="1">
<PAGE>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of business on the first business day next following such record date by
               an amount, in the case of the conversion price, equal to the sum of the
               aggregate long-term capital gain per share of Common Stock declared previously
               in such calendar year and the long-term capital gain per share of Common Stock
               payable to holders on such record date in respect of the shares of Common Stock
               outstanding at the close of business on such record date (less any amount by
               which the conversion price shall have been previously decreased in such calendar
               year pursuant to this subparagraph 3(d)(iv)). As used in this subparagraph
               3(d)(iv), the term Net Asset Value Attributable to Common Stock means the total
               value of the Corporation&#146;s investments and other assets, as determined by
               the Board of Directors of the Corporation in accordance with Section 2(a)(41)(B)
               of the Investment Company Act of 1940, less the sum of its liabilities and the
               aggregate involuntary liquidation preference of the outstanding shares of
               Convertible Preferred Stock. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whenever the conversion rate is
adjusted pursuant to this subparagraph 3(d) the Corporation shall (i) promptly place on
file at the office of its transfer agent or agents for the shares of this series a
statement signed by the Chairman, the President or the Secretary of the Corporation
showing in detail the facts requiring such adjustment and the conversion rate and
conversion price after such adjustment, and shall make such statement available for
inspection by stockholders of the Corporation, and (u) cause a notice to be published at
least once in a newspaper printed in the English language and of general circulation in
the Borough of Manhattan, The City of New York, New York, stating that such adjustment has
been made and the adjusted conversion rate and the adjusted conversion price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;        In
case of any reclassification or change of the outstanding shares of Common
               Stock of the Corporation (except a split or combination of shares) or in
case of                any consolidation or merger to which the Corporation is a party
(except a merger                in which the Corporation is the surviving corporation and
which does not result                in any reclassification of or change in the
outstanding Common Stock of the                Corporation except a split or combination
of shares) or in case of any sale or                conveyance to another corporation of
all or substantially all of the property of                the Corporation, effective
provision shall be made by the Corporation or by the                successor or
purchasing corporation (i) that the holder of each share of this                series
then outstanding shall thereafter have the right to convert such share
               into the kind and amount of stock and other securities and property
receivable                upon such reclassification, change, consolidation, merger, sale
or conveyance by                a holder of the number of shares of Common Stock of the
Corporation into which                such share of this series might have been converted
immediately prior thereto,                and (ii) that there shall be subsequent
adjustments of the conversion rate which                shall be equivalent, as nearly as
practicable, to the adjustments provided for                in subparagraph 3(d) above.
The provisions of this subparagraph 3(e) shall                similarly apply to
successive reclassifications, changes, consolidations,                mergers, sales or
conveyances.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></P>


<HR SIZE="1">
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;    The
issuance of Common Stock on conversion of shares of this series shall be
               without charge to the converting holder of shares of this series for any
tax in                respect of the issuance thereof, but the Corporation shall not be
required to                pay any tax which may be payable in respect of any transfer
involved in the                issuance and delivery of shares in any name other than
that of the holder of                record on the books of the Corporation of the shares
of this series converted,                and the Corporation shall not be required to
issue or deliver any certificate                for shares of Common Stock unless and
until the person requesting the issuance                thereof shall have paid to the
Corporation the amount of such tax or shall have                established to the
satisfaction of the Corporation that such tax has been paid.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;     Shares
of Common Stock issued on conversion of shares of this series shall be
               issued as fully paid shares and shall be non-assessable by the
Corporation. The                Corporation shall at all times reserve and keep
available, free from preemptive                rights, for the purpose of effecting the
conversion of shares of this series,                such number of its duly authorized
shares of Common Stock as shall be sufficient                to effect the conversion of
all outstanding shares of this series.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;    In
case at any time:  </FONT></P>



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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;
               a distribution is to be declared to the holders of Common Stock from net
               realized long-term capital gain which would result in an adjustment of the
               conversion rate pursuant to subparagraph 3(d)(iv); </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;
               the Corporation shall offer for subscription <I>pro rata</I> to the holders of
               its Common Stock any additional shares of its capital stock of any class or any
               other rights; or </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               &nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp;
               the consolidation or merger of the Corporation with another corporation shall be
               proposed by the Corporation; </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>then, and in any one or more of said
cases, the Corporation shall cause at least fifteen days&#146; prior notice to be mailed
to the transfer agent or agents for the shares of this series, and to the holders of
record of the outstanding shares of this series, of the date on which (x) the books of the
Corporation shall close or a record be taken for such distribution or subscription rights,
or (y) such consolidation or merger shall take place, as the case may be. Such notice
shall also specify the date as of which holders of Common Stock of record shall
participate in such distribution or subscription rights or shall be entitled to exchange
their Common Stock for securities or other property deliverable upon such consolidation or
merger, as the case may be. The failure to mail or publish such notice or any defect
therein or the failure of any addressee to receive it shall not affect the validity of any
action taken or to be taken by the Corporation with regard to holders to whom notice was
properly mailed. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18</FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, PETROLEUM &amp; RESOURCES CORPORATION has caused these presents to be
signed in its name and on its behalf by its Chairman, President or one of its Vice
Presidents and its corporate seal to be hereunto affixed and attested by its Secretary,
and the said officers of the Corporation further acknowledged said instrument to be the
corporate act of the Corporation and stated under the penalties of perjury that to the
best of their knowledge, information and belief the matters and facts therein set forth
with respect to approval are true in all material respects, all on June 7, 1977. </FONT></P>
<BR>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTEST:</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION<BR><BR><BR></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"  WIDTH="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By</FONT></TD>
<TD ALIGN="LEFT" WIDTH="46%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="85%" COLOR="Black" ALIGN="Left"></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="85%" COLOR="Black" ALIGN="Left"></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. G. Whitney, Secretary</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<BR><BR><BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLES OF AMENDMENT <BR>TO<BR>
ARTICLES OF INCORPORATION <BR>OF <BR>PETROLEUM &amp; RESOURCES CORPORATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PETROLEUM
&amp; RESOURCES CORPORATION, a Maryland corporation having its principal office in
Baltimore City, Maryland (hereinafter called the &#147;Corporation&#148;), hereby
certifies to the State Department of Assessments and Taxation of Maryland that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:&nbsp;&nbsp;The
Articles of Incorporation of the Corporation are hereby amended by striking out the first
paragraph of Article SIXTH thereof, as heretofore amended, and inserting in lieu thereof
the following: </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;SIXTH:&nbsp;&nbsp;
The total number of shares of stock which the Corporation shall have authority to issue is
55,000,000 shares with an aggregate par&nbsp;value of $50,000,000, divided into two
classes consisting of (a) 50,000,000 shares of Common Stock of the par value of $1.00 per
share, and (b) 5,000,000 a shares of Preferred Stock without par value.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:&nbsp;&nbsp;The
Board of Directors of the Corporation at a meeting duly convened and held on January 13,
2000, adopted a resolution in which was set forth the foregoing amendment of the Articles
of Incorporation, declaring that said amendment was advisable and directing that it be
submitted for action thereon at the Annual Meeting of Stockholders of the Corporation to
be held on March 28, 2000. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:&nbsp;&nbsp;Notice
setting forth the said amendment of the Articles of Incorporation and stating that a
purpose of the Annual Meeting of Stockholders would be to take action thereon was given,
as required by law, to all stockholders entitled to vote thereon. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH:&nbsp;&nbsp;The
amendment of the Articles of Incorporation of the Corporation as hereinabove set forth was
approved by the stockholders of the Corporation at said meeting by the affirmative vote of
a majority of all the votes entitled to be cast thereon, being a majority of the issued
and outstanding shares of Common Stock. </FONT></P>


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<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH:&nbsp;&nbsp;The
amendment of the Article of Incorporation as hereinabove set forth has been duly advised
by the Board of Directors and approved by the stockholders of the Corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH:&nbsp;&nbsp;(a)&nbsp;&nbsp;The
total number of shares of all classes of stock of the Corporation heretofore
          authorized by Article SIXTH of the Articles of Incorporation of the Corporation
          is 31,000,000 shares, with an aggregate par value of $50,000,000, divided into
          (1) 25,000,000 shares of Common Stock, par value $1.00 per share,           (ii)&nbsp;5,000,000
shares of Preferred Stock, without par value, and (iii)           1,000,000 shares of
Convertible Preferred Stock, par value $25.00 per share; (b)           the total number
of shares of all classes of stock of the Corporation, as           increased by the
foregoing amendment to said Article SIXTH, is 55,000,000           shares, with an
aggregate par value of $50,000,000, divided into (i) 50,000,000           shares of
Common Stock, par value $1.00 per share, and (ii)&nbsp;5,000,000           shares of
Preferred Stock, without par value, and (c) a description, as amended,           of each
class of stock of the rights, voting powers, restrictions, limitations           as to
dividends, qualifications, and terms and conditions of redemption is set           forth
in the Articles of Incorporation of the Corporation, as amended hereby.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, Petroleum &amp; Resources Corporation has caused these presents to be
signed in its name and on its behalf by its President or one of its Vice Presidents and
its corporate seal to be hereunto affixed and attested by its Secretary, and the said
officers of the Corporation further acknowledged said instrument to be the corporate act
of the Corporation and stated under the penalties of perjury that to the best of their
knowledge, information and belief, the matters and facts therein set forth with respect to
the approval thereof are true in all material respects on May 8, 2000. </FONT></P>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTEST:</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION<BR><BR><BR></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ LAWRENCE L. HOOPER, JR.</FONT></TD>
<TD ALIGN="LEFT"  WIDTH="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By</FONT></TD>
<TD ALIGN="LEFT" WIDTH="46%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ RICHARD F. KOLOSKI</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="85%" COLOR="Black" ALIGN="Left"></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="85%" COLOR="Black" ALIGN="Left"></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lawrence L. Hooper, Jr.<BR>
Vice President, Secretary <BR> &nbsp;&nbsp;&nbsp;&nbsp;&amp; General Counsel</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Richard F. Koloski<BR>President</FONT></TD>
</TR>
</TABLE>
<BR><BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLES OF AMENDMENT </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PETROLEUM
&amp; RESOURCES CORPORATION, a Maryland corporation having its principal office in
Baltimore City, Maryland (hereinafter referred to as the &#147;Corporation&#148;), hereby
certifies to the State Department of Assessments and Taxation of Maryland that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:&nbsp;&nbsp;The
Articles of Incorporation of the Corporation are hereby amended by adding a second
paragraph to Article Tenth as follows; </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;The
affirmative vote of the holders of two-thirds of the total number of shares outstanding
and entitled to vote shall be necessary to authorize any of the following actions: (i) a
merger or consolidation with an open-end investment company, (ii) the dissolution of the
Corporation, (iii) the transfer of all or substantially all of the assets of the
Corporation, (iv) any amendment to these Articles of Incorporation which makes the Common
Stock a redeemable security (as such term is defined in the Investment Company Act of
1940) or reduces the two-thirds vote required to authorize the actions listed in this
paragraph or (v) a merger or consolidation with a corporation whose charter does not
require the vote of at least two-thirds of each class of stock entitled to be cast to
approve the actions listed in this paragraph.&#148; </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and by adding at the beginning of the
first paragraph of Article Tenth, the clause: &#147;Except as otherwise provided in the
paragraph below and in Article Sixth, .&nbsp;.&nbsp;.&#148;. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:&nbsp;&nbsp;The
Board of Directors of the Corporation on January 11, 1979, duly adopted a resolution in
which was set forth the foregoing amendment of the Articles </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of Incorporation, declaring
that the said amendment of the Articles of Incorporation as proposed was advisable and
directing that it be submitted for action thereon by the stockholders of the Corporation
at the annual meeting to be held on March 28, 1979. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:&nbsp;&nbsp;Notice
setting forth said amendment of the Articles of Incorporation and stating that a purpose
of the meeting of the stockholders would be to take action thereon, was given, as required
by law, to all stockholders entitled to vote thereon. The amendment of the Articles of
Incorporation of the Corporation as hereinabove set forth was approved by the stockholders
of the Corporation at said meeting by the affirmative vote of a majority of all the votes
entitled to be cast thereon. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH:&nbsp;&nbsp;The
amendment of the Articles of Incorporation of the Corporation as hereinabove set forth has
been duly advised by the Board of Directors and approved by the stockholders of the
Corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, PETROLEUM &amp; RESOURCES CORPORATION has caused these presents to be
signed in its name and on its behalf by its President and its corporate seal to be
hereunto affixed and attested by its Secretary, and the said officers of the Corporation
further acknowledged said instrument to be the corporate act of the Corporation and stated
under the penalties of perjury that to the best </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of their knowledge, information and
belief the matters and facts therein set forth with respect to approval are true in all
material respects, all on April 24, 1979. </FONT></P>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION,<BR><BR><BR></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"  WIDTH="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By</FONT></TD>
<TD ALIGN="LEFT" WIDTH="46%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ ROBERT J. M. WILSON</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="85%" COLOR="Black" ALIGN="Left"></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Robert J. M. Wilson,&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(SEAL)<BR><BR><BR></FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ J. G. WHITNEY</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="75%" COLOR="Black" ALIGN="Left"></TD>
<TD ALIGN="LEFT" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>J. G. Whitney, Secretary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<BR><BR><BR><BR>

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<PAGE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLES OF AMENDMENT </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Pursuant to Section 2-604 of the <BR>
Maryland General Corporation Law) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PETROLEUM
&amp; RESOURCES CORPORATION, a Maryland corporation having its principal office in
Baltimore, Maryland (hereinafter called the &#147;Corporation&#148;), hereby certifies to
the State Department of Assessments and Taxation of Maryland that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:&nbsp;&nbsp;The
Articles of Incorporation, as amended, of the Corporation are hereby further amended by
adding thereto the following Articles ELEVENTH and TWELFTH: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;ELEVENTH:
To the fullest extent that applicable law (including the General Corporation Law of the
State of Maryland and the Investment Company Act of 1940), as in effect on the date this
Article became a part of the Corporation&#146;s Articles of Incorporation or as such law
may thereafter be amended and in effect, permits the limitation or elimination of the
liability of directors and officers, no director or officer of the Corporation shall be
liable to the Corporation or to its stockholders for money damages. No amendment to or
repeal of this Article shall apply to or have any effect on the liability or alleged
liability of any director or officer of the Corporation for or with respect to any acts or
omissions of such director or officer occurring prior to such amendment or repeal. </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;TWELFTH:
The Corporation shall indemnify to the fullest extent permitted by applicable law
(including the General Corporation Law of the State of Maryland and the Investment Company
Act of 1940), as in effect on the date this Article became a part of the
Corporation&#146;s Articles of Incorporation or as such law may thereafter be amended and
in effect, any person who was or is involved in any manner (including, without limitation,
as a party or a witness), or is threatened to be made so involved, in any investigation,
claim, action, suit or proceeding, whether criminal, civil, administrative or
investigative, by reason of the fact that such person or such person&#146;s testator or
intestate is or was a director or officer or, at the option of the Board of Directors in
any particular case, an employee or agent, of the</FONT>
</TD>
</TR>
</TABLE>
<BR>


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<PAGE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Corporation or serves or served at the
request of the Corporation any other enterprise as a director, officer, partner or
trustee, or, at the option of the Board of Directors in any particular case, an employee
or agent. To the fullest extent permitted by applicable law (including the General
Corporation Law of the State of Maryland and the Investment Company Act of 1940), as in
effect on the date this Article became a part of the Corporation&#146;s Articles of
Incorporation or as such law may thereafter be amended and in effect, expenses incurred by
any such person in connection with any such investigation, claim, action, suit or
proceeding shall be paid or reimbursed by the Corporation promptly upon receipt by it of
an undertaking of such person to repay such expenses if it shall ultimately be determined
that such person is not entitled to be indemnified by the Corporation of the rights
provided to any director or officer by this Article shall be enforceable against the
Corporation by any such director or officer, who shall be presumed to have relied upon it
in serving or continuing to serve as a director or officer as provided above. No amendment
to or repeal of this Article shall impair the rights of any person arising at any time
with respect to events occurring prior to such amendment or repeal.&#148; </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:&nbsp;&nbsp;The
Board of Directors of the Corporation, at a meeting duly convened and held on January 12,
1989, adopted a resolution setting forth the foregoing amendment of the Articles of
Incorporation, declaring that said amendment was advisable and directing that it be
submitted for action thereon at the annual meeting of the stockholders of the Company to
be held on March 28, 1989. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:&nbsp;&nbsp;Notice
setting forth the said amendment of the Articles of Incorporation and stating that a
purpose of the annual meeting of stockholders would be to take action thereon was given,
as required by law, to all stockholders entitled to vote thereon. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH:&nbsp;&nbsp;The
amendment of the Articles of Incorporation of the Corporation as hereinabove set forth was
approved by the stockholders of the</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></P>


<HR SIZE="1">
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Corporation at said meeting by the affirmative vote of
a majority of all the votes entitled to be cast thereon. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH:&nbsp;&nbsp;The
amendment of the Articles of Incorporation as hereinabove set forth has been duly advised
by the Board of Directors and approved by the stockholders of the Corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, Petroleum &amp; Resources Corporation has caused these presents to be
signed in its name and on its behalf by its officer thereunto duly authorized and its
corporate seal to be hereunto affixed and attested by its Secretary on March 28, 1989. </FONT></P>

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<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION,<BR><BR><BR></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"  WIDTH="4%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By</FONT></TD>
<TD ALIGN="LEFT" WIDTH="46%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ RICHARD F. KOLOSKI</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="85%" COLOR="Black" ALIGN="Left"></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name:&nbsp;&nbsp;Richard F. Koloski<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;President</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Attest:<BR><BR><BR></FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ J. G. WHITNEY</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="75%" COLOR="Black" ALIGN="Left"></TD>
<TD ALIGN="LEFT" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>J. G. Whitney<BR>Vice President and Secretary</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<BR><BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLES SUPPLEMENTARY </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Petroleum
&amp; Resources Corporation, a Maryland corporation (the &#147;Corporation&#148;), hereby
certifies to the State Department of Assessments and Taxation of Maryland (the
&#147;SDAT&#148;), that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:&nbsp;&nbsp;Under
a power contained in Title 3, Subtitle 8 of the Maryland General Corporation Law (the
&#147;MGCL&#148;), and in accordance with resolutions duly adopted by the Board of
Directors of the Corporation (the &#147;Board of Directors&#148;) at a meeting duly called
and held, the Corporation elects, notwithstanding any provision in its charter or Bylaws
to the contrary, to be subject to Section 3-804(b) and (c) of the MGCL, the repeal of
which may be effected only by the means authorized by Section 3-802(b)(3) of the MGCL. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:&nbsp;&nbsp;The
election to become subject to Section 3-804(b) and (c) of the MGCL has been approved by
the Board of Directors in the manner and by the vote required by law. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:&nbsp;&nbsp;The
undersigned Executive Vice President of the Corporation acknowledges these Articles
Supplementary to be the corporate act of the Corporation and, as to all matters or facts
required to be verified under oath, the undersigned Executive Vice President acknowledges
that, to the best of his knowledge, information and belief, these matters and facts are
true in all material respects and that this statement is made under the penalties for
perjury. </FONT></P>
<BR>

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<BR><BR>


<HR SIZE="1">
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the Corporation has caused these Articles Supplementary to be executed
under seal in its name and on its behalf by its Executive Vice President and attested by
its Secretary on this 16th day of October, 2003. </FONT></P>
<BR>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTEST:<BR><BR><BR></FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PETROLEUM &amp; RESOURCES CORPORATION<BR><BR><BR></FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT" WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ LAWRENCE L. HOOPER, JR.</FONT></TD>
<TD ALIGN="LEFT"  WIDTH="42%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ JOSEPH M. TRUTA</FONT></TD>
<TD ALIGN="LEFT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(SEAL)</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="80%" COLOR="Black" ALIGN="Left"></TD>
<TD ALIGN="LEFT"><HR SIZE="1" WIDTH="100%" COLOR="Black" ALIGN="Left"></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lawrence L. Hooper, Jr.<BR>Secretary</FONT></TD>
<TD ALIGN="Left" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joseph M. Truta<BR>Executive Vice President</FONT></TD>
</TR>
</TABLE>
<BR><BR><BR><BR>

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<HR SIZE="1">

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>3
<FILENAME>petros80405ex4b.htm
<DESCRIPTION>EXHIBIT 4-B
<TEXT>
<HTML>
<HEAD>
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     <TITLE>Exhibit 4-b</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 4-b &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<BR><BR>

<HR ALIGN="Left" WIDTH="100%" SIZE="2" COLOR="Black">
<BR><BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5>Petroleum &amp;
Resources Corporation </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a Maryland Corporation) </FONT></P>
<BR><BR><BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">___________________________________</FONT> <BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5>By-Laws </FONT></H1>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">___________________________________</FONT> </P>
<BR><BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ADOPTED FEBRUARY 12,
1976<BR>AND AS AMENDED THROUGH <BR>APRIL 14, 2005 </FONT></H1>
<BR><BR>

<HR ALIGN="Left" WIDTH="100%" SIZE="2" COLOR="Black">

<HR ALIGN="Left" WIDTH="100%" SIZE="2" COLOR="Black">

<PAGE>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Petroleum &amp; Resources Corporation </FONT></H1>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________</FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>By-Laws </FONT></H1>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">_________________________</FONT> </P>

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<A NAME=A008></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE ONE </FONT></P>

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<A NAME=A009></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OFFICES </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.1.&nbsp;&nbsp;
<I>Corporation&#146;s Office in Maryland; Mailing Address for Service of Process.</I> &nbsp;&nbsp;The
location of the Corporation&#146;s office within the State of Maryland, and the post
office address to which the Secretary of State of the State of Maryland shall mail a copy
of Process in any action or proceeding against the Corporation that may be served upon
him, shall be in each case as stated in the Articles of Incorporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
1.2.&nbsp;&nbsp;<I>Other Offices</I>. &nbsp;&nbsp;The Corporation may have other offices within or without the
State of Maryland. </FONT></P>

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<A NAME=A010></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE TWO </FONT></P>

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<A NAME=A011></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STOCKHOLDER MEETINGS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.1. &nbsp;&nbsp;<I>Annual Meetings</I>.&nbsp; &nbsp;Effective for the year 2005, an annual meeting of
stockholders to elect directors and transact such other business as may properly be
presented to the meeting shall be held on Wednesday, April 27, 2005, at such time and
place as the directors may designate </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.2. &nbsp;&nbsp;<I>Special Meetings</I>. &nbsp;&nbsp;A special meeting of stockholders may be called at any time
and for any purpose by the Board of Directors, its Chairman, Vice-Chairman or the
President. Such a special meeting shall be called by any of them or by the Secretary upon
receipt of written request to do so specifying the matter or matters, appropriate for
action at a special meeting, proposed to be presented to the meeting and signed by holders
of record of at least 50% of the shares that would be entitled to be cast at the meeting
if the meeting were held at the time of receipt of such request and if, for such meeting,
no record date was fixed, provided that the stockholders requesting such meeting shall
have paid to the Corporation the reasonably estimated cost of preparing and mailing a
notice of the meeting. At any such special meeting only such business may be transacted as
is related to the purpose or purposes set forth in the notice required by Section 2.4. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.3.&nbsp; &nbsp;<I>Place of Meetings</I>. &nbsp;&nbsp;Meetings of stockholders shall be held at such place as the
Board of Directors shall fix. If no place shall be so fixed, the meeting shall be held at
the office of the Corporation in the State of Maryland </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.4. &nbsp;&nbsp;<I>Notice of Meetings</I>. &nbsp;&nbsp;(a) &nbsp;&nbsp;Written notice of a meeting of stockholders shall be
given, personally or by mail, not less than ten nor more than sixty days before the
meeting to each stockholder entitled to vote at such meeting; such notice shall state the
date, place and hour of the meeting and, unless it is the annual meeting, the purpose or
purposes for which the meeting is called and shall state the name or names of the persons
who have directed the calling of the meeting. If, at any meeting, action is proposed to be
taken that would, if taken, entitle stockholders fulfilling the requirements of Section
3-202 of the General Corporation Law of Maryland to receive payment for their shares, the
notice of such meeting shall include a statement of that purpose and to that effect. If
mailed, such notice is given when deposited in the United States mail, with first class
postage thereon prepaid, directed to each stockholder at his address as it appears on the
record of stockholders, or, if he shall have duly filed with the Secretary of the
Corporation a written request that notices to him be mailed to some other address, then
directed to him at such other address. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;
          When a meeting is adjourned to another time or place, it shall not be necessary
          to give any notice of the adjourned meeting if the time and place to which the
          meting is adjourned are announced at the meeting at which the adjournment is
          taken, and at the adjourned meeting any business may be transacted that might
          have been transacted on the original date of the meeting. However, if after
          adjournment the Board of Directors fixes a new record date for the adjourned
          meeting, a notice of the adjourned meeting shall be given to each stockholder of
          record on the new record date entitled to notice under paragraph (a) of the
          Section 2.4 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.5. &nbsp;&nbsp;<I>Quorum</I>.&nbsp;&nbsp; Except as otherwise required by law, the By-laws, or the Articles of
Incorporation, the holders of record of a majority of the shares entitled to be voted
present in person or represented by proxy at a meeting shall be necessary and sufficient
to constitute a quorum for the transaction of business at the meeting, but in the absence
of a quorum the holders of record present or represented by proxy at such meeting may vote
to adjourn the meeting from time to time. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.6.&nbsp;&nbsp;<I> Presiding Officer and Secretary at Meetings</I>. &nbsp;&nbsp;Each stockholders&#146; meeting
shall be presided over by the Chairman of the Board of Directors, Vice-Chairman or in
their absence by the President or if none of the aforementioned is present by the person
designated in writing by the Chairman of the Board of Directors if there is one in office,
otherwise by the Vice-Chairman or the President, or if no person is designated, then a
chairman of the meeting shall be chosen by the meeting by a plurality vote. The Secretary
or in his absence an Assistant Secretary shall act as secretary of the meeting, or, if no
such officer is present, a secretary of the meeting shall be designated by the person
presiding at the meeting. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.7.&nbsp;&nbsp;<I> Voting</I>.&nbsp;&nbsp;Except as otherwise provided in the Articles of Incorporation or the By-laws:</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;  each
stockholder of record shall be entitled at every meeting of stockholders to           one
vote in person or by proxy for each share standing in his name on the record           of
stockholders;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;  directors
shall be elected by a plurality vote;  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;   each
other matter properly presented to any meeting shall be decided by a           majority
of the votes cast on the matters; and  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;  election
of directors and the vote on any other matter before a meeting shall be           by
ballot only if so ordered by the person presiding at the meeting or if so
          requested by any stockholder present or represented by proxy at the meeting
          entitled to vote in such election or on such matter, as the case may be.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.8.&nbsp;&nbsp; <I>Proxies.</I> &nbsp;&nbsp;Every proxy must be executed in writing by the stockholder or by his
attorney-in-fact. No proxy shall be valid after the expiration of eleven months from the
date thereof, unless otherwise provided in the proxy. Every proxy shall be revocable at
the pleasure of the stockholder executing it, except in those cases where an irrevocable
proxy is expressly stated to be given and is permitted by law. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.9. &nbsp;&nbsp;<I>Consent of Stockholders in Lieu of Meeting</I>. &nbsp;&nbsp;Whenever by any provision of law
or of the Articles of Incorporation stockholders are required or permitted to take any
action by vote, such action may be taken without a meeting on written consent, setting
forth the action so taken, signed by the holders of all outstanding shares entitled to
vote thereon, and filed with the records of stockholders&#146; meetings. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.10. &nbsp;&nbsp;<I>Record Date</I>. &nbsp;&nbsp;(a) &nbsp;&nbsp;For the purpose of determining the stockholders entitled to
notice of or to vote at any meeting of stockholders or any adjournment thereof, or to
express consent to or dissent from any proposal without a meeting, or for the purpose of
determining stockholders entitled to receive payment of any dividend or the allotment of
any rights or for the purpose of any other action, the Board of Directors may fix in
advance a date as the record date for any such determination of stockholders. Such date
shall not be more than sixty nor less than ten days before the date of the meeting, nor
more than sixty days prior to any other action. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;    When
a determination of stockholders of record entitled to notice of or to vote           at
any meeting of stockholders has been made as provided in this section, such
          determination shall apply to any adjournment thereof, unless the Board of
          Directors shall fix a new record date under this section for the adjourned
          meeting.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.11. &nbsp;&nbsp;<I>Advanced Notice of Stockholder Nominees for Director and Other Stockholder
Proposals</I>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;    The
matters to be considered and brought before any annual or special meeting of
          stockholders of the Corporation shall be limited to only such matters,
including           the nomination and election of directors, as shall be brought
properly before           such meeting in compliance with the procedures set forth in
this Section 2.11.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;    For
any matter to be properly before any annual meeting of stockholders, the           matter
must be (i) specified in the notice of annual meeting given by or at the
          direction of the Board of Directors, (ii) otherwise brought before the annual
          meeting by or at the direction of the Board of Directors, or (iii) brought
          before the annual meeting in the manner specified in this Section 2.11 (b) by a
          stockholder of record or a stockholder (a &#147;Nominee Holder&#148;) that
holds           voting securities entitled to vote at meetings of stockholders through a
nominee           or &#147;street name&#148; holder of record and can demonstrate to the
          Corporation such indirect ownership and such Nominee Holder&#146;s entitlement
          to vote such securities. In addition to any other requirements under applicable
          law and the Articles of Incorporation and By-Laws of the Corporation, persons
          nominated by stockholders for election as directors of the Corporation and any
          other proposal by stockholders shall be properly brought before the meeting
only           if notice of any such matter to be presented by a stockholder at such
meeting of           stockholders (the &#147;Stockholder Notice&#148;) shall be delivered
to the           Secretary of the Corporation at the principal executive office of the
          Corporation not less than 60 nor more than 90 days prior to the first
          anniversary date of the annual meeting for the preceding year; <U>provided,
          however,</U> if and only if the annual meeting is not scheduled to be held
          within a period that commences 30 days before such anniversary date and ends 30
          days after such anniversary date (an annual meeting date outside such period
          being referred to herein as an &#147;Other Annual Meeting Date&#148;), such
          Stockholder Notice shall be given in the manner provided herein by the later of
          the close of business on (i) the date 60 days prior to such Other Meeting Date
          or (ii) two weeks following the date such Other Annual Meeting Date is first
          publicly announced or disclosed. Any stockholder desiring to nominate any
person           or persons (as the case may be) for election as a director or directors
of the           Corporation shall deliver, as part of such Stockholder Notice: (i) a
statement           in writing setting forth (A) the name of the person or persons to be
nominated,           (B) the number and class of all shares of each class of stock of the
Corporation           owned of record and beneficially by each such person, as reported
to such           stockholder by such nominee(s), (C) the information regarding each such
person           required by paragraph (b) of Item 22 of Rule 14a-101 under the
Securities           Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),
adopted by the           Securities and Exchange Commission (or the corresponding
provisions of any           regulation or rule subsequently adopted by the Securities and
Exchange           Commission applicable to the Corporation), (D) whether such
stockholder believes           any nominee will be an &#147;interested person&#148; of
the Corporation (as           defined in the Investment Company Act of 1940, as amended)
and, if not an           &#147;interested person&#148;, such information regarding each
nominee that will           be sufficient for the Corporation to make such determination,
and (E) the number           and class of all shares of each class of stock of the
Corporation owned of           record and beneficially by such stockholder; (ii) each
person&#146;s signed           consent to serve as a</FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>director of the Corporation if
elected; (iii) such           stockholder&#146;s name and address; and, (iv) in the case
of a Nominee Holder,           evidence establishing such Nominee Holder&#146;s indirect
ownership of, and           entitlement to vote, securities at the meeting of
stockholders. Any stockholder           who gives a Stockholder Notice of any matter
proposed to be brought before the           meeting (not involving nominees for director)
shall deliver, as part of such           Stockholder Notice, the text of the proposal to
be presented; a brief written           statement of the reasons why such stockholder
favors the proposal; such           stockholder&#146;s name and address; the number and
class of all shares of each           class of stock of the Corporation owned of record
and beneficially by such           stockholder; if applicable, any material interest of
such stockholder in the           matter proposed (other than as a stockholder); and, in
the case of a Nominee           Holder, evidence establishing such Nominee Holder&#146;s
indirect ownership or,           and entitlement to vote, securities at the meeting of
stockholders. As used           herein, shares &#147;beneficially owned&#148; shall mean
all shares that such           person is deemed to beneficially own pursuant to Rules
13d-3 and 13d-5 under the           Exchange Act.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything in this Section 2.11(b) to the contrary, in the event that the number of
directors to be elected to the Board of Directors of the Corporation is increased and
either all of the nominees for director or the size of the increased Board of Directors
are not publicly announced or disclosed by the Corporation at least 70 days prior to the
first anniversary of the preceding year&#146;s annual meting, a Stockholder Notice shall
also be considered timely hereunder, but only with respect to nominees for any new
positions created by such increase, if it shall be delivered to the Secretary of the
Corporation at the principal executive office of the Corporation not later than the close
of business two weeks following the first date all of such nominees or the size of the
increased Board of Directors shall have been publicly announced or disclosed. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;   Only
such matters shall be properly brought before a special meeting of           stockholders
as shall have been brought before the meeting pursuant to the           Corporation&#146;s
notice of meeting. In the event the Corporation calls a           special meeting of
stockholders for the purpose of electing one or more           directors to the Board of
Directors, any stockholder may nominate a person or           persons (as the case may
be), for election to such position(s) as specified in           the Corporation&#146;s
notice of meeting, if the Stockholder Notice required by           Section 2.11 (b)
hereof shall be delivered to the Secretary of the Corporation           at the principal
executive office of the Corporation not later than the close of           business two
weeks following the day on which the date of the special meeting           and of the
nominees proposed by the Board of Directors to be elected at such           meeting is
publicly announced or disclosed.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;  For
purposes of this Section 2.11, a matter shall be deemed to have been           &#147;publicly
announced or disclosed&#148; if such matter is disclosed in a           press release
reported by the Dow Jones News Service, Associated Press or           comparable national
news service or in a document publicly filed by the           Corporation with the
Securities and Exchange Commission.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;   In
no event shall the adjournment of an annual meeting, or any announcement
          thereof, commence a new period for the giving of notice as provided in this
          Section 2.11. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Section 2.11 shall not apply to stockholder proposals made
          pursuant to Rule 14a-8 under the Exchange Act.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;  The
person presiding at any meeting of stockholders, in addition to making any
          other determinations that may be appropriate to the conduct of the meeting,
          shall have the power and duty to determine whether notice of nominees and other
          matters proposed to be brought before a meeting has been duly given in the
          manner provided in this Section 2.11 and, if not so given, shall direct and
          declare at the meeting that such nominees and other matters shall not be
          considered.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE THREE </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DIRECTORS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.1.&nbsp;&nbsp;<I> Number; Term of Office; Qualifications; Vacancies.</I> &nbsp;&nbsp;The business of the
Corporation shall be managed by the Board of Directors, each of whom shall be at least
twenty-one years of age. The number of directors that shall constitute the entire Board of
Directors shall be a minimum of nine and a maximum of thirteen, as shall be fixed by the
Board of Directors by resolution from time to time. The number of directors is fixed at
eleven. Directors shall be elected at each annual meeting of stockholders to hold office
until the next annual meeting of stockholders. Subject to Sections 3.2 and 3.3, each
director shall hold office until the expiration of the term for which he is elected and
until his successor has been elected and qualified. The number of directors may be
increased or decreased by amendment of the By-Laws, but no decrease shall shorten the term
of any incumbent director. Newly created directorships resulting from an increase in the
number of directors and vacancies occurring in the Board of Directors for any reason
whatever including removal of directors without cause may be filled by a vote of a
majority of the directors then in office, although less than a quorum exists. A director
elected to fill a vacancy shall be elected to hold office for the unexpired term of his
predecessor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.2. &nbsp;&nbsp;<I>Resignation</I>.&nbsp;&nbsp; Any director of the Corporation may resign at any time by giving
written notice of such resignation to the Board of Directors, the Chairman of the Board or
the Secretary of the Corporation. Any such resignation shall take effect at the time
specified therein or, if no time be specified, upon receipt thereof by the Board of
Directors or one of the above-named officers; and, unless specified therein, the
acceptance of such resignation shall not be necessary to make it effective. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.3. &nbsp;&nbsp;<I>Removal</I>. &nbsp;&nbsp;Any one or more directors may be removed, with or without cause, by
the vote of a majority of the issued and outstanding shares of the Corporation. Any one or
more directors may be removed for cause by the Board of Directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.4. &nbsp;&nbsp;<I>Retirement. </I>&nbsp;&nbsp;Upon attaining the age of 75, any director who was first elected
to serve on the Corporation&#146;s Board of Directors after July 9, 1998, shall be</FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>required to retire at the expiration of the term then being served and will not be
permitted to stand for re-election at the next annual meeting of stockholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.5. &nbsp;&nbsp;<I>Regular Meetings; Notice.</I> &nbsp;&nbsp;Regular meetings of the Board of Directors shall be
held at such time and at such place (within or without the State of Maryland) as the Board
of Directors may from time to time prescribe. Notice of any regular meeting shall be given
as set forth in Section 3.6 herein, except that such notice need not state the purpose of
the meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.6. &nbsp;&nbsp;<I>Special Meetings; Notice. </I>&nbsp;&nbsp;A special meeting of the Board of Directors may be
called at any time by the Board of Directors, its Chairman or the Vice-Chairman and shall
be called by any one of them or by the Secretary upon receipt of a written request to do
so specifying the matter or matters, appropriate for action at such a meeting, proposed to
be presented at the meeting and signed by at least two directors. Any such meeting,
proposed to be presented at the meeting and signed by at least two directors. Any such
meeting shall be held at such time and at such place, within or without the State of
Maryland, as shall be stated in the request or as shall be determined by the body or
person calling such meeting. Notice of such meeting stating the time, place and purposes
thereof shall be given (a) by deposit of the notice in the mails (first class, postage
prepaid) at least two days before the day fixed for the meeting addressed to each director
at his address as it appears on the Corporation&#146;s records or at such other address as
the director may have furnished to the Corporation for that purpose, or (b) by delivery of
the notice similarly addressed for dispatch by telegraph, cable or radio or by delivery of
such notice personally or by telephone in person, in each case at least 24 hours before
the time fixed for the meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.7. &nbsp;&nbsp;<I>Presiding Officer and Secretary at Meetings. </I>&nbsp;&nbsp;There shall preside at each
meeting of the Board of Directors, the Chairman of the Board of Directors or, in his
absence, the Vice-Chairman or, if neither is present, such member of the Board of
Directors as shall be chosen by the meeting. The Secretary, or in his absence a Secretary
chosen by the meeting, shall act as secretary of the meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.8.&nbsp; &nbsp;<I>Quorum; Voting. </I>&nbsp;&nbsp;A majority of the entire Board of Directors shall be necessary
and sufficient to constitute a quorum for the transaction of business at any meeting. A
majority of the directors present, whether or not a quorum is present, may adjourn the
meeting to another time and place, without notice other than announcement at the meeting.
In the absence of any such announcement, notice of any such adjournment shall be given in
accordance with the provisions of Section 3.5. Except as otherwise required or permitted
by law, the Article of Incorporation or the By-laws, the vote of a majority of the
directors then present at a meeting of the Board of Directors, if a quorum is present at
such time, shall be the act of the Board of Directors. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.9. &nbsp;&nbsp; <I>Executive and Other Committees.</I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;The
Board of Directors, by resolution adopted by a majority of the entire Board           of
Directors, may designate from among its members an executive committee and
          other committees, each consisting of two or more directors and each of which,
to           the extent provided in the resolution, shall have all the authority of the
Board           of Directors in the intervals between meetings of the Board of Directors,
except           that no such committee shall have authority as to the following matters:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp; &nbsp;The
submission to stockholders of any action that needs stockholders&#146;          approval
under law.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;
               The filling of vacancies in the Board of Directors or in any committee. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;
               The fixing of compensation of the directors for serving on the Board of
               Directors or on any committee. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;
               The amendment or repeal of the By-laws, or the adoption of new By-laws. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;
               The amendment or repeal of any resolution of the Board of Directors that by its
               terms shall not be so amendable or repealable. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;
               The issuance of stock of the Corporation. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;
               The declaration of dividends. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;   The
Board of Directors may designate one or more directors as alternate members           of
any such committee, who may replace any absent member or members at any           meeting
of such committee.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;   Each
such committee shall serve at the pleasure of the Board of Directors.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.10. &nbsp;&nbsp;<I>Compensation</I>. &nbsp;&nbsp;Each director for his services as a director or as a member of
a committee may receive compensation therefor at a fixed annual rate or in the form of
fees for attendance at meetings, plus reimbursement for expenses in attending such
meetings, or a combination thereof, in each case as may from time to time be fixed by the
Board of Directors. Any director who serves the Corporation in any capacity other than as
a member of the Board of Directors or a committee may also receive compensation therefor. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.11. &nbsp;&nbsp;<I>Loans to Directors. </I>&nbsp;&nbsp;A loan shall not be made by the Corporation to any
director unless it is authorized by vote of the stockholders. For this purpose, the shares
of the director who would be the borrower shall not be shares entitled to vote. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>


<HR SIZE="1">
<PAGE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE FOUR </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OFFICERS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.1. &nbsp;&nbsp;<I>Election; Qualification. </I>&nbsp;&nbsp;The officers of the Corporation shall be a Chairman
of the Board, a Vice-Chairman (who shall be a director of the Corporation), a President,
one or more Vice Presidents, a Treasurer and a Secretary, each of whom shall be elected by
the Board of Directors. The Board of Directors may elect such other officers as it may
from time to time determine. Two or more offices of President and Vice President may not
be held by the same person. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.2. &nbsp;&nbsp;<I>Term of Office. </I>&nbsp;&nbsp;Each officer shall hold office from the time of his election
and qualification to the time at which his successor is elected and qualified, unless
sooner he shall die or resign or shall be removed pursuant to Section 4.4. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.3. &nbsp;&nbsp;<I>Resignation. </I>&nbsp;&nbsp;Any officer of the Corporation may resign at any time by giving
written notice of such resignation to the Board of Directors, the Chairman of the Board or
the Secretary of the Corporation. Any such resignation shall take effect at the time
specified therein or, if no time be specified, upon receipt thereof by the Board of
Directors or one of the above-named officers; and, unless specified therein, the
acceptance of such resignation shall not be necessary to make it effective. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.4. &nbsp;&nbsp;<I>Removal. </I>&nbsp;&nbsp;Any officer of the Corporation may be removed at any time, with or
without cause, by the Board of Directors if the Board of Directors in its judgment finds
that the best interest of the Corporation will be served by such removal. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.5. &nbsp;&nbsp;<I>Compensation. </I>&nbsp;&nbsp;The compensation of each officer shall be such as the Board of
Directors may from time to time determine. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.6. &nbsp;&nbsp;<I>Chairman of the Board.</I> &nbsp;&nbsp;The Chairman of the Board at the discretion of the
Board of Directors may or may not be the chief executive officer of the Corporation and if
so, shall have general charge of the business affairs of the Corporation, subject,
however, to the right of the Board of Directors to confer specified powers on officers and
subject generally to the direction of the Board of Directors. He shall preside at all
meetings of stockholders and of the Board of Directors. During the absence or inability to
act of the President, the Chairman of the Board of Director shall, subject to the
direction of the Board of Directors, exercise powers and perform the duties of the
President. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.7. &nbsp;&nbsp;<I>Vice-Chairman of the Board.</I> &nbsp;&nbsp;The Vice-Chairman of the Board shall assist the
Chairman of the Board of Directors in the performance of his responsibilities and shall
exercise such powers and perform such duties as the Board of Directors or the Chairman of
the Board of Directors may from time to time prescribe. The Vice-Chairman of the Board, at
the discretion of the Board of Directors, may or may not be the chief </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>


<HR SIZE="1">
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>executive officer of
the Corporation, and if so shall have general charge of the business and affairs of the
Corporation, subject, however, to the right of the Board of Directors to confer specified
powers on officers and subject generally to the direction of the Board of Directors. At
the request of the Chairman of the Board of Directors, or in case of his absence or
inability to act, the Vice-Chairman of the Board shall, subject to the direction of the
Board of Directors, exercise the powers and perform the duties of the Chairman of the
Board of Directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.8.&nbsp;&nbsp; <I>President. </I>&nbsp;&nbsp;The President shall assist the Chairman and Vice-Chairman of the
Board of Directors in the performance of their responsibilities and shall exercise such
powers and perform such duties as the Board of Directors or the Chairman or Vice-Chairman
of the Board of Directors may from time to time prescribe. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.9. &nbsp;&nbsp;<I>Vice President. </I>&nbsp;&nbsp;Each Vice President shall exercise such powers and perform
such duties as generally pertain to the office of Vice President and as the Board of
Directors or the Chairman of the Board may from time to time prescribe. During the absence
of the Chairman of the Board of Directors and the President, or during their inability to
act, the Vice-President, or if there shall be more than one Vice President, then that one
designated by the Board of Directors, shall, subject to the direction of the Board of
Directors, exercise the powers and perform the duties of such offices. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.10. &nbsp;&nbsp;<I>Treasurer. </I>&nbsp;&nbsp; The Treasurer shall have care of all funds and securities of the
Corporation, shall have supervision over the books of account of the Corporation and
shall, subject to the direction of the Board of Directors, exercise the powers and perform
the duties incident to the office of Treasurer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.11. &nbsp;&nbsp;<I>Secretary. </I>&nbsp;&nbsp;The Secretary shall keep the minutes of all meetings of
stockholders and of the Board of Directors. He shall be custodian of the corporate seal
and shall affix it or cause it to be affixed to such instruments as require such seal and
attest the same and shall, subject to the direction of the Board of Directors, exercise
the powers and perform the duties incident to the office of Secretary. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.12. &nbsp;&nbsp;<I>Other Officers</I>. &nbsp;&nbsp;Each other officer of the Corporation shall, subject to the
direction of the Board of Directors, exercise the powers and perform the duties incident
to his office. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.13. &nbsp;&nbsp;<I>Bond</I>. &nbsp;&nbsp;Any officer of the Corporation, if so required by the Board of
Directors, shall give to the Corporation such bond or other security for the faithful
performance of his duties as may be satisfactory to the Board of Directors. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE FIVE </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INDEMNIFICATION </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.1. &nbsp;&nbsp;<I>Right to Indemnification. </I>&nbsp;&nbsp;To the fullest extent permitted by applicable law as
then in effect (including the General Corporation Law of the State of Maryland (the
&#147;GCL&#148;) and the Investment Company Act of 1940 (the &#147;Act&#148;), the
Corporation shall indemnify any person (the &#147;Indemnitee&#148;) who was or is 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 &#147;Proceeding&#148;) by reason of the fact that
he is or was, or his testator or intestate is or was, a director or officer, or, at the
option of the Board of Directors in any particular case, an employee or agent of the
Corporation, or is or was serving at the request of the Corporation as a director,
officer, partner or trustee or, at the option of the Board of Directors in any particular
case, an employee or agent of another corporation, partnership, joint venture, trust or
other enterprise (including, without limitation, any employee benefit plan) against all
liabilities, expenses (including attorneys&#146; fees), judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by him in connection with such
Proceeding. Such indemnification shall be a contract right and shall include the right to
receive payment in advance of any expenses incurred by the Indemnitee in connection with
such Proceeding, consistent with the provisions of applicable law as then in effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.2. &nbsp;&nbsp;<I>Insurance, Contracts and Funding. </I>&nbsp;&nbsp;The Corporation may purchase and maintain
insurance to protect itself and any Indemnitee against any expenses, judgments, penalties,
fines and amounts paid in settlement as specified in Section 5.1 of this Article or
incurred by an Indemnitee in connection with any Proceeding referred to in Section 5.1 of
this Article, to the fullest extent permitted by applicable law as then in effect
(including the GCL and the Act). The Corporation may enter into contracts with any
director, officer, employee or agent of the Corporation in furtherance of the provisions
of this Article and may create a trust fund, grant a security interest or use other means
(including, without limitation, a letter of credit) to ensure the payment of such amounts
as may be necessary to effect indemnification as provided in this Article. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.3. &nbsp;&nbsp;<I>Indemnification; Not Exclusive Right. </I>&nbsp;&nbsp;The right of indemnification provided in
this Article shall not be exclusive of any other rights to which those seeking
indemnification may otherwise be entitled, and the provisions of this Article shall inure
to the benefit of the heirs and legal representatives of any person entitled to indemnity
under this Article and shall be applicable to Proceedings commended or continuing after
the adoption of this Article, whether arising from acts or omissions occurring before or
after such adoption. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.4. &nbsp;&nbsp;<I>Advancement of Expenses; Procedures; Presumptions and Effect of Certain
Proceedings; Remedies. </I>&nbsp;&nbsp;In furtherance, but not in limitation of the foregoing
provisions, the following procedures, presumptions and remedies shall apply with respect
to advancement of expenses and the right to indemnification under this Article: </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;<I>Advancement
of Expenses.</I> &nbsp;&nbsp;All reasonable expenses incurred by or on behalf
          of the Indemnitee in connection with any Proceeding shall be advanced to the
          Indemnitee by the Corporation within 20 days after the receipt by the
          Corporation of a statement or statements from the Indemnitee requesting such
          advance or advances from time to time, whether prior to or after final
          disposition of such Proceedings. Such statement or statements shall set forth a
          written affirmation of the Indemnitee&#146;s good faith belief that he is
          entitled to indemnification pursuant to this Article, shall reasonably evidence
          the expenses incurred by the Indemnitee and, if required by law at the time of
          such advance, shall include or be accompanied by an undertaking by or on behalf
          of the Indemnitee to repay the amounts advanced if it should ultimately be
          determined that the Indemnitee is not entitled to be indemnified against such
          expenses pursuant to this Article.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;<I>Procedure
for Determination of Entitlement to Indemnification. </I>&nbsp;&nbsp;(i)&nbsp;&nbsp;To
          obtain indemnification under this Article, an Indemnitee shall submit to the
          Secretary of the Corporation a written request, including such documentation
and           information as is reasonably available to the Indemnitee and reasonably
          necessary to determine whether and to what extent the Indenmitee is entitled to
          indemnification (the &#147;Supporting Documentation&#148;). The determination
of           the Indemnitee&#146;s entitlement to indemnification shall be made not later
          than 60 days after receipt by the Corporation of the written request for
          indemnification together with the Supporting Documentation. The Secretary of
the           Corporation shall, promptly upon receipt of such a request for
indemnification,           advise the Board of Directors in writing that the Indemnitee
has requested           indemnification.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;     The
Indemnitee&#146;s entitlement to indemnification under this Article shall be
          determined in one of the following ways: (A) by a majority vote of the
          Disinterested Directors (as hereinafter defined), if they constitute a quorum
of           the Board of Directors; (B) by a written opinion of Independent Counsel (as
          hereinafter defined) if a quorum of the Board of Directors consisting of
          Disinterested Directors is not obtainable or, even if obtainable, a majority of
          such Disinterested Directors so directs; (C) by the stockholders of the
          Corporation (but only if a majority of the Disinterested Directors, if they
          constitute a quorum of the Board of Directors, presents the issue of
entitlement           to indemnification to the stockholders for their determination); or
(D) as           provided in Section 5.4(c).  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;      In
the event the determination of entitlement to indemnification is to be made           by
Independent Counsel pursuant to Section 5.4(b)(ii), a majority of the
          Disinterested Directors shall select Independent Counsel, but only an
          Independent Counsel to which the Indemnitee does not reasonably object. If
there           are less than two Disinterested Directors, the Independent Counsel shall
be           selected by a majority vote of the full Board, but shall be an Independent
          Counsel to which the Indemnitee does not reasonably object.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;<I>Presumptions
and Effect of Certain Proceedings.</I> &nbsp;&nbsp;Except as otherwise           expressly provided
in this Article, the Indemnitee shall be presumed to be           entitled to</FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>indemnification under this Article upon submission of a request for
          indemnification together with the Supporting Documentation in accordance with
          Section 5.4(b)(i), and thereafter the Corporation shall have the burden of
proof           to overcome that presumption in reaching a contrary determination. In any
event,           if the person or persons empowered under Section 5.4(b) to determine
entitlement           to indemnification shall not have been appointed or shall not have
made a           determination within 60 days after receipt by the Corporation of the
request           therefor together with the Supporting Documentation, the Indemnitree
shall be           deemed to be entitled to indemnification and the Indemnitee shall be
entitled to           such indemnification unless (A) the Indemnitee misrepresented or
failed to           disclose a material fact in making the request for indemnification or
in the           Supporting Documentation or (B) such indemnification is prohibited by
law           (including the GCL and the Act). Subject to applicable law (including the
GCL           and the Act), the termination of any Proceeding described in Section 5.1,
or of           any claim, issue or matter therein, by judgment, order, settlement or
          conviction, or upon a plea of <I>nolo contendere </I>or its equivalent, shall
          not, of itself adversely affect the right of the Indemnitee to indemnification
          or create a presumption that the Indemnitee is not entitled to indemnification
          under this Article.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;<I>Remedies
of Indemnitee. </I>&nbsp;&nbsp;(i)&nbsp;&nbsp; In the event that a determination is made           pursuant to
Section 5.4(b) that the Indemnitee is not entitled to           indemnification under
this Article, (A) the Indemnitee shall be entitled to seek           an adjudication of
his entitlement to such indemnification either, at the           Indemnitee&#146;s sole
option, in (x) an appropriate court of the State of           Maryland or any other court
of competent jurisdiction or (y) an arbitration to           be conducted by a single
arbitrator pursuant to the rules of the American           Arbitration Association; (B)
any such judicial proceeding or arbitration shall           be <I>de novo</I> and the
Indemnitee shall not be prejudiced by reason of such           adverse determination; and
(C) in any such judicial proceeding or arbitration           the Corporation shall have
the burden of proving that the Indemnitee is not           entitled to indemnification
under this Article.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;     If
a determination shall have been made or deemed to have been made, pursuant to
          Section 5.4(b) or (c), that the Indemnitee is entitled to indemnification, the
          Corporation shall be obligated to pay the amounts constituting such
          indemnification within five days after such determination has been made or
          deemed to have been made and shall be conclusively bound by such determination
          unless (A) the Indemnitee misrepresented or failed to disclose a material fact
          in making the request for indemnification or in the Supporting Documentation or
          (B) such Indemnification is prohibited by law (including the GCL and the Act).
          In the event that (C) advancement of expenses is not timely made pursuant to
          Section 5.4(a) or (D) payment to indemnification is not made within five days
          after a determination of entitlement to indemnification has been made or deemed
          to have been made pursuant to Section 5.4(b) or (c), the Indemnitee shall be
          entitled to seek judicial enforcement of the Corporation&#146;s obligation to
          pay to the Indemnitee such advancement of expenses or indemnification.
          Notwithstanding the foregoing, the Corporation may bring an action, in an
          appropriate court in the State of Maryland or any other court of competent
          jurisdiction, contesting the right of the Indemnitee to receive</FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>indemnification
          hereunder due to the occurrence of an event described in subclause (A) or (B)
of           this clause (ii) (a &#147;Disqualifying Event&#148;); provided, however,
that in           any such action the Corporation shall have the burden of proving the
occurrence           of such Disqualifying Event.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;     Except
as required by the GCL and the Act, the Corporation shall be precluded           from
asserting in any judicial proceeding or arbitration commenced pursuant to           this
section 5.4(d) that the procedures and presumptions of this Article are not
          valid, binding and enforceable and shall stipulate in any such court or before
          any such arbitrator that the Corporation is bound by all the provisions of this
          Article.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;          In
the event that the Indemnitee, pursuant to this Section 5.4(d), seeks a
          judicial adjudication of or an award in arbitration to enforce his rights
under,           or to recover damages for breach of, this Article, the Indemnitee shall
be           entitled to recover from the Corporation, and shall be indemnified by the
          Corporation against, any expenses actually and reasonably incurred by him if
the           Indemnitee prevails in such judicial adjudication or arbitration. If it
shall be           determined in such judicial adjudication or arbitration that the
Indemnitee is           entitled to receive part but not all of the indemnification or
advancement of           expenses sought, the expenses incurred by the Indemnitee in
connection with such           judicial adjudication or arbitration shall be prorated
accordingly.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp; <I>Definitions.</I>&nbsp;&nbsp; For
purposes of this Section 5.4:  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;      &#147;Disinterested
Director&#148; means a director of the Corporation who is           not or was not a
party to the Proceeding in respect of which Indemnification is           sought by the
Indemnitee.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;     &#147;Independent
Counsel&#148; means a law firm or a member of a law firm that           neither presently
is, nor in the past five years has been, retained to           represent: (i) the
Corporation or the Indemnitee in any matter material to           either such party or
(ii) any other party to the Proceeding giving rise to a           claim for
indemnification under this Article. Notwithstanding the foregoing, the           Term
&#147;Independent Counsel&#148; shall not include any person who, under the
          applicable standards of professional conduct then prevailing under the law of
          the State of Maryland, would have a conflict of interest in representing either
          the Corporation or the Indemnitee in an action to determine the
          Indemnitee&#146;s rights under this Article.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.5. &nbsp;&nbsp;<I>Severability. </I>&nbsp;&nbsp;If any provisions or provisions of this Article shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Article (including, without
limitation, all portions of any paragraph of this Article containing any such provision
held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby; and (b) to the
fullest extent possible, the provisions of this Article (including, without limitation,
all portions of any paragraph of this Article containing any such provision</FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>held to be
invalid, illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested by the
provision held invalid, illegal or unenforceable. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE SIX </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHARES </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.1. &nbsp;&nbsp;<I>Certificates Representing Shares</I>. &nbsp;&nbsp;The shares of the Corporation shall be
represented by certificates in such form consistent with law and the Articles of
Incorporation, as the Board of Directors may from time to time prescribe. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.2. &nbsp;&nbsp;<I>Transfer of Shares. </I>&nbsp;&nbsp;Shares of the Corporation shall be transferable on the
books of the Corporation by the holder of record thereof or by his attorney upon surrender
of the certificate representing such shares with an assignment endorsed thereon or
attached thereto duly executed and with such proof of authenticity of signatures as the
Corporation may reasonably require. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.3. &nbsp;&nbsp;<I>Transfer Agent; Registrar. </I>&nbsp;&nbsp;The Board of Directors may appoint one or more
transfer agents and one or more registrars and may require each certificate representing
shares to bear the signature of a transfer agent, or of a registrar or of both. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.4. &nbsp;&nbsp;<I>Holders of Record. </I>&nbsp;&nbsp;The Corporation shall be entitled to treat the holder of
record of a share as the complete owner thereof entitled to receive dividends thereon and
to vote such share and otherwise entitled to all the rights and powers of a complete owner
thereof, notwithstanding notice to the contrary. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.5. &nbsp;&nbsp;<I>Lost, Stolen, Destroyed or Mutilated Certificates. </I>&nbsp;&nbsp;The Corporation may issue
upon such terms and conditions as the Board of Directors may from time to time prescribe a
new certificate representing shares to replace a certificate theretofore issued by it
alleged to have been lost, stolen, destroyed or mutilated. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE SEVEN </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MISCELLANEOUS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.1. &nbsp;&nbsp;<I>Inspection of Records. </I>&nbsp;&nbsp;The Board of Directors shall have power, except as
otherwise provided by law, to determine the extent to which the books and records of
account of the Corporation shall be open to inspection by a stockholder. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>


<HR SIZE="1">
<PAGE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.2.  &nbsp;&nbsp;<I>Waiver of Notice and Lapse of Time.</I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;     Any
action that is authorized to be taken after notice or after the lapse of a
          prescribed period of time may be taken without notice and without the lapse of
          such period of time, if at any time before or after such action is completed
the           person entitled to such notice or entitled to participate in the action to
be           taken, or, in the case of a stockholder, his attorney-in-fact, submits a
signed           waiver of notice or of such time requirement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;          Notice
of any stockholder&#146;s meeting need not be given to any stockholder           who
submits a signed waiver of notice, in person or by proxy, whether before or
          after the meeting. The attendance of any stockholder at a meeting, in person or
          by proxy, without protesting prior to the conclusion of the meeting the lack of
          notice of such meeting, shall constitute a waiver of notice of meeting by him.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;    Notice
of any directors&#146; meeting need not be given to any director who           submits a
signed waiver of notice before or after the meeting, or who attends           the meeting
without protesting, prior thereto or at its commencement, the lack           of notice to
him.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.3. &nbsp;&nbsp;<I>Fiscal Year. </I>&nbsp;&nbsp;The fiscal year of the Corporation shall start on such date as
the Board of Directors shall from time to time prescribe. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.4. &nbsp;&nbsp;<I>Corporate Seal. </I>&nbsp;&nbsp;The corporate seal shall be in such form as the Board of
Directors may from time to time prescribe. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.5. &nbsp;&nbsp;<I>Stock Ledger. </I>&nbsp;&nbsp;The Corporation shall maintain a stock ledger in any form which
can be converted within a reasonable time into written form for visual inspection. Such
stock ledger shall contain the name, address of and number of shares of stock held by each
stockholder. The original stock ledger of the Corporation shall be kept at the office of
the transfer agent and registrar of the Corporation. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE EIGHT </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMENDMENT OF BY-LAWS</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
8.1. &nbsp;&nbsp;<I>Amendment. </I>&nbsp;&nbsp;Notwithstanding any language to the contrary in the Articles of
Incorporation of the Corporation or these By-laws, the By-laws may be adopted, amended or
repealed only by vote of the Board of Directors upon the affirmative vote of a majority of
the entire Board. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>


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<DOCUMENT>
<TYPE>EX-5
<SEQUENCE>4
<FILENAME>petros80405ex5.htm
<DESCRIPTION>EXHIBIT 5
<TEXT>
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     <TITLE>Exhibit 5</TITLE>
</HEAD>
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<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 5 &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[Letterhead of Lawrence L. Hooper, Jr.] </FONT></P>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 27, 2005 </FONT></P>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Petroleum &amp; Resources Corporation<BR>
Seven St. Paul Street <BR>Suite 1140<BR>Baltimore, Maryland &nbsp;&nbsp;21202 </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ladies and Gentlemen: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I am Vice President and General
Counsel of Petroleum &amp; Resources Corporation, a Maryland corporation (the
&#147;Company&#148;), and am delivering this opinion in connection with the filing by the
Company of a Registration Statement on Form S-8 (the &#147;Registration Statement&#148;)
registering under the Securities Act of 1933, as amended (the &#147;Act&#148;), shares of
Common Stock, par value $1.00 per share, of the Company (&#147;Common Stock&#148;), which
may be delivered from time to time pursuant to the Petroleum &amp; Resources Corporation
2005 Equity Incentive Compensation Plan (the &#147;Plan&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I have examined such documents,
records and matters of law as I have deemed necessary as a basis for the opinion
hereinafter expressed, including the Registration Statement and the corporate proceedings
taken by the Company in connection with the authorization of the shares of Common Stock to
be delivered from time to time pursuant to the Plan. On the basis of the foregoing, and
having regard for legal considerations that I deem relevant, I am of the opinion that when
the Registration Statement becomes effective under the Act, any newly issued shares of
Common Stock delivered from time to time in accordance with the Plan will, when so
delivered, be legally issued, fully paid and non-assessable. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I hereby consent to the reference to
me and this opinion in the Registration Statement and the filing of this opinion as an
Exhibit to the Registration Statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I express no opinion herein as to any
laws other than the General Corporation Law of the State of Maryland (as well as the
applicable provisions of the Maryland Constitution and applicable reported judicial
decisions) and the Federal laws of the United States. </FONT></P>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Very truly yours, <BR><BR>
/s/ LAWRENCE L. HOOPER, JR.<BR><BR>Lawrence L. Hooper, Jr. </FONT></P>
<BR>

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<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>5
<FILENAME>petros80405ex23a.htm
<DESCRIPTION>EXHIBIT 23-A
<TEXT>
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     <TITLE>Exhibit 23-a</TITLE>
</HEAD>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 23-a &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
hereby consent to the incorporation by reference in this Registration Statement on Form
S-8 of our report dated January 13, 2005 relating to the financial statements and
financial highlights of Petroleum &amp; Resources Corporation which appears in the 2004
Annual Report to Stockholders, which is incorporated by reference in Petroleum &amp;
Resources Corporation&#146;s Annual Report on Form N-CSR for the year ended December 31,
2004 and which is also incorporated by reference into this Registration Statement. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ PRICEWATERHOUSECOOPERS LLP </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PRICEWATERHOUSECOOPERS LLP <BR>
Baltimore, Maryland<BR>April 26, 2005 </FONT></P>
<BR><BR><BR>

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<TYPE>EX-23
<SEQUENCE>6
<FILENAME>petros80405ex23b.htm
<DESCRIPTION>EXHIBIT 23-B
<TEXT>
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     <TITLE>Exhibit 23-b</TITLE>
</HEAD>
<BODY>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 23-b &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSENT OF COUNSEL </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
hereby consent to the reference to this firm and to the inclusion of the summary of our
opinion under the caption &#147;Tax Consequences&#148; in the Prospectus related to this
registration statement on Form S-8 filed by Petroleum &amp; Resources Corporation in
respect of the Petroleum &amp; Resources Corporation 2005 Equity Incentive Compensation
Plan. </FONT></P>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ CHADBOURNE &amp;
PARKE LLP &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30 Rockefeller Plaza<BR>
New York, New York 10112<BR>April 27, 2005 </FONT></P>
<BR><BR><BR>


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<DOCUMENT>
<TYPE>EX-24
<SEQUENCE>7
<FILENAME>petros80405ex24.htm
<TEXT>
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     <TITLE>Exhibit 24</TITLE>
</HEAD>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 24 &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>POWER OF ATTORNEY </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I,
the undersigned Director and/or Officer of Petroleum &amp; Resources Corporation, a
Maryland corporation (the &#147;Company&#148;), hereby constitute and appoint LAWRENCE L.
HOOPER, JR. and DOUGLAS G. OBER, and each of them singly, my true and lawful
attorneys-in-fact and agents with full power to them and each of them to sign for me, and
in my name and in the capacity or capacities indicated below, a Registration Statement on
Form S-8 and any and all amendments (including supplements and post-effective amendments)
for the purpose of registering under the Securities Act of 1933, as amended, securities to
be sold pursuant to the Petroleum &amp; Resources Corporation 2005 Equity Incentive
Compensation Plan. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=35%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Signature</B></U> </FONT><BR><BR></TD>
<TD ALIGN=CENTER WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Title</B></U> </FONT><BR><BR></TD>
<TD ALIGN=CENTER WIDTH=25%> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Date</B></U> </FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Douglas G. Ober</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Douglas G. Ober</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board, Chief Executive Officer
(principal executive officer) and a Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 20, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Enrique R. Arzac</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Enrique R. Arzac</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Phyllis O. Bonanno</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Phyllis O. Bonanno</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Daniel E. Emerson</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Daniel E. Emerson</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Thomas H. Lenagh</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Thomas H. Lenagh</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ W. D. MacCallan</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> W. D. MacCallan</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Kathleen T. McGahran </FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Kathleen T. McGahran</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
</TABLE>
<BR>


<HR SIZE="1">
<PAGE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=35%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Signature</B></U> </FONT><BR><BR></TD>
<TD ALIGN=CENTER WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Title</B></U> </FONT><BR><BR></TD>
<TD ALIGN=CENTER WIDTH=25%> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Date</B></U> </FONT><BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Landon Peters</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Landon Peters</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ John J. Roberts</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> John J. Roberts</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Susan C. Schwab</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Susan C. Schwab</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Robert J. M. Wilson</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Robert J. M. Wilson</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 14, 2005</FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Maureen Jones</FONT><BR>
<HR SIZE="1" WIDTH="90%" COLOR="Black"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Maureen Jones</FONT><BR><BR></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Vice President, Chief Financial Officer and Treasurer
(principal financial and accounting officer)</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 20, 2005</FONT></TD>
</TR>
</TABLE>
<BR><BR><BR><BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>


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