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Articles of Incorporation - Bay Apartment Communities Inc.

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                                  ARTICLES OF

                           AMENDMENT AND RESTATEMENT

                                       OF

                           ARTICLES OF INCORPORATION

                                       OF

                        BAY APARTMENT COMMUNITIES, INC.





                              Dated: June 4, 1998
<PAGE>   2
                                  ARTICLES OF
                           AMENDMENT AND RESTATEMENT
                                       OF
                           ARTICLES OF INCORPORATION
                                       OF
                        BAY APARTMENT COMMUNITIES, INC.


                                   ARTICLE I

                                   PREAMBLE

         Bay Apartment Communities, Inc., a corporation organized and existing
under the laws of the State of Maryland (the "Corporation"), hereby certifies
as follows:

         1.1     The name of the Corporation is Bay Apartment Communities, Inc.
The date of the filing of its Articles of Incorporation with the State
Department of Assessments and Taxation of the State of Maryland (the
"Department") was March 13, 1995 (as thereafter amended from time to time prior
to the date hereof, the "Original Charter").

         1.2     The total number of shares of stock which the Corporation has
authority to issue (the "Stock") prior to the date of this Amendment and
Restatement is eighty-five million (85,000,000) shares, consisting of (i)
twenty-five million (25,000,000) shares of preferred stock, par value $.01 per
share ("Preferred Stock"); (ii) forty million (40,000,000) shares of common
stock, par value $.01 per share ("Common Stock"); and (iii) twenty million
(20,000,000) shares of excess common stock, par value $.01 per share.  The
aggregate par value of all of the shares of all classes of Stock prior to the
date of this Amendment and Restatement is $850,000.

         1.3     The total number of shares of Stock which the Corporation has
authority to issue immediately following this Amendment and Restatement is
three hundred seventy million (370,000,000) shares, initially consisting of (i)
fifty million (50,000,000) shares of Preferred Stock; (ii) three hundred
million (300,000,000) shares of Common Stock; and (iii) twenty million
(20,000,000) shares of excess stock, par value $.01 per share ("Excess Stock").
The aggregate par value of all the shares of all classes of Stock immediately
following this Amendment and Restatement is $3,700,000.

         1.4     These Articles of Amendment and Restatement of Articles of
Incorporation (the "Articles"), which amend, restate and integrate the
provisions of the Original Charter were deemed advisable and approved by a
majority of the Board of Directors of the Corporation and were approved by the
stockholders of the Corporation in accordance with the Maryland General
Corporation Law (the "MGCL").

         1.5     The Corporation desires to amend and restate the Original
Charter as currently in effect, and upon acceptance for record by the
Department the provisions set forth in these



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Articles shall be all of the provisions of the charter of the Corporation.

                                   ARTICLE II

                                      NAME

         The name of the Corporation is:

                         "Avalon Bay Communities, Inc."


                                  ARTICLE III

                                   PURPOSES

         Purpose and Powers.  The purposes for which the Corporation is formed
are to engage in business as a real estate investment trust (a "REIT") (as that
phrase is defined under Section 856 of the Internal Revenue Code of 1986, as
amended (the "Code")) and to engage in any other lawful act or activity for
which corporations may be organized under the Maryland General Corporation Law.
The foregoing purposes shall be in no way limited or restricted by reference
to, or inference from, the terms of any other clause of these Articles, as
amended from time to time, and each shall be regarded as independent.  The
foregoing purposes are also to be construed as powers of the Corporation, and
shall be in addition to and not in limitation of the general powers of
corporations under the laws of the State of Maryland.


                                   ARTICLE IV

                            PRINCIPAL OFFICE ADDRESS

         The address of the principal office of the Corporation in Maryland is
c/o The Corporation Trust Incorporated, 300 East Lombard Street, Suite 1400,
Baltimore, Maryland 21202.


                                   ARTICLE V

                               THE RESIDENT AGENT

         The resident agent of the Corporation in Maryland is The Corporation
Trust Incorporated, whose address is 300 East Lombard Street, Suite 1400,
Baltimore, Maryland 21202.

                                   ARTICLE VI

                               BOARD OF DIRECTORS





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         6.1     General Powers; Action by Committee.  The business and affairs
of the Corporation shall be managed under the direction of the Board of
Directors and, except as otherwise expressly provided by law, these Articles or
the bylaws, as amended from time to time (the "Bylaws"), of the Corporation,
all of the powers of the Corporation shall be vested in such Board.  Any action
which the Board of Directors is empowered to take may be taken on behalf of the
Board of Directors by a duly authorized committee thereof except (i) to the
extent limited by Maryland law, these Articles or the Bylaws and (ii) for any
action which requires the affirmative vote or approval of a majority of all
Directors then in office (unless, in such case, these Articles or the Bylaws
specifically provide that a duly authorized committee can take such action on
behalf of the Board of Directors).  A majority of the Board of Directors shall
constitute a quorum and, except as otherwise specifically provided in these
Articles, the affirmative vote of a majority of the Directors present at a
meeting at which a quorum is present shall be the act of the Board of
Directors.

         6.2     Number.  The number of Directors of the Corporation shall be
fixed from time to time by a resolution duly adopted by the Board of Directors;
provided, however, that the total number of Directors shall be not fewer than
three (3).  No reduction in the number of Directors shall cause the removal of
any Director from office prior to the expiration of his or her term.
Immediately following the effectiveness of this Amendment and Restatement the
Corporation shall have twelve (12) Directors, whose names shall be as follows:

                                  Gilbert M. Meyer
                                  Charles H. Berman
                                  Bruce A. Choate
                                  Michael A. Futterman
                                  John J. Healy, Jr.
                                  Christopher B. Leinberger
                                  Richard L. Michaux
                                  Richard W. Miller
                                  Brenda J. Mixson
                                  Thomas H. Nielsen
                                  Lance R. Primis
                                  Allan D. Schuster

         6.3     Term; Election.  The term of office of each Director shall
expire at the next succeeding annual meeting of stockholders.  The Directors
elected at each annual meeting of stockholders shall hold office until their
successors are duly elected and qualified or until their earlier resignation or
removal.

         Notwithstanding the foregoing, whenever, pursuant to the provisions of
Article VII or Article XIV of these Articles, the holders of any one or more
series of Stock shall have the right, voting separately as a series or together
with holders of other such series, to elect Directors at an annual or special
meeting of stockholders, the election, term of office, filling of vacancies and
other features of such directorships shall be governed by the terms of these





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Articles and any articles supplementary applicable thereto.

         During any period when the holders of any series of Stock have the
right to elect additional Directors as provided for or fixed pursuant to the
provisions of Article VII or Article XIV of these Articles, then upon
commencement and for the duration of the period during which such right
continues:  (a) the then otherwise total authorized number of Directors of the
Corporation shall automatically be increased by such specified number of
Directors, and the holders of such  Stock shall be entitled to elect the
additional Directors so provided for or fixed pursuant to said provisions and
(b) each such additional Director shall serve until such Director's successor
shall have been duly elected and qualified, or until such Director's right to
hold such office terminates pursuant to said provisions, whichever occurs
earlier, subject to such Director's earlier death, disqualification,
resignation or removal.  Except as otherwise provided by the Board of Directors
in the resolution or resolutions establishing such series, whenever the holders
of any series of Stock having such right to elect additional Directors are
divested of such right pursuant to the provisions of such Stock, the terms of
office of all such additional Directors elected by the holders of such Stock,
or elected to fill any vacancies resulting from the death, resignation,
disqualification or removal of such additional Directors, shall forthwith
terminate and the total authorized number of Directors of the Corporation shall
be reduced accordingly.

         6.4     Resignation or Removal of Directors.  Any Director may resign
from the Board of Directors or any committee thereof at any time by written
notice to the Board of Directors, effective upon execution and delivery to the
Corporation of such notice or upon any future date specified in the notice.
Subject to the rights, if any, of the holders of any series of Stock to elect
Directors and to remove any Director whom such holders have the right to elect,
any Director (including persons elected by Directors to fill vacancies in the
Board of Directors) may be removed from office (a) only with cause and (b) only
by the affirmative vote of the holders of at least 75% of the shares then
entitled to vote at a meeting of the stockholders called for that purpose.  At
least 30 days prior to any meeting of stockholders at which it is proposed that
any Director be removed from office, written notice of such proposed removal
shall be sent to the Director whose removal will be considered at the meeting.
For purposes of these Articles, "cause," with respect to the removal of any
Director, shall mean only (i) conviction of a felony, (ii) declaration of
unsound mind by order of a court, (iii) gross dereliction of duty, (iv)
commission of any act involving moral turpitude or (v) commission of an act
that constitutes intentional misconduct or a knowing violation of law if such
action in either event results both in an improper substantial personal benefit
to such Director and a material injury to the Corporation.

         6.5     Vacancies.  Subject to the rights, if any, of the holders of
any class or series of  Stock to elect Directors and to fill vacancies on the
Board of Directors relating thereto, any vacancy on the Board of Directors
which results from the removal of a Director for cause shall be filled by the
affirmative vote of a majority of votes cast by the stockholders normally
entitled to vote in the election of Directors at a meeting of stockholders.
Any vacancy occurring on the Board of Directors for any other reason, except as
a result of an increase in the number of Directors, may be filled by a majority
vote of the remaining Directors,





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notwithstanding that such majority is less than a quorum; provided, however,
that any Director appointed to fill the vacancy for an Independent Director (as
hereinafter defined) shall also require the vote affirmative vote of a majority
of the remaining Independent Directors.  Any vacancy occurring on the Board of
Directors as a result of an increase in the number of Directors may be filled
by a majority vote of the entire Board of Directors.  A Director elected by the
Board of Directors or the stockholders to fill a vacancy shall hold office
until the next annual meeting of stockholders and until his or her successor is
elected and qualified.  In the event of a vacancy in the Board of Directors,
the remaining Directors, except as otherwise provided by law, may exercise the
powers of the full Board of Directors until such vacancy is filled.

         6.6     Independent Directors.  Notwithstanding anything herein to the
contrary, at all times (except during a period not to exceed sixty (60) days
following the death, resignation, incapacity, or removal from office of a
Director prior to the expiration of the Director's term of office), a majority
of the Board of Directors shall be comprised of persons ("Independent
Directors") who are not officers or employees of the Corporation or any
affiliate thereof and who do not have a material business or professional
relationship with the Corporation or any affiliate thereof.

         6.7     Powers.  Subject to the express limitations herein or in the
Bylaws, the business and affairs of the Corporation shall be managed under the
direction of the Board of Directors.   These Articles, as amended or
supplemented from time to time, shall be construed with a presumption in favor
of the grant of power and authority to the Directors.  The determination as to
any of the following matters, made in good faith by or pursuant to the
direction of the Board of Directors consistent with these Articles and in the
absence of actual receipt of an improper benefit in money, property or services
or active and deliberate dishonesty established by a court, shall be final and
conclusive and shall be binding upon the Corporation and every holder of shares
of its Stock: the amount of the net income of the Corporation for any period
and the amount of assets at any time legally available for the payment of
dividends, redemption of its Stock or the payment of other distributions on its
Stock; the amount of paid-in surplus, net assets, other surplus, annual or
other net profit, net assets in excess of capital, undivided profits or excess
of profits over losses on sales of assets; the amount, purpose, time of
creation, increase or decrease, alteration or cancellation of any reserves or
charges and the propriety thereof (whether or not any obligation or liability
for which such reserves or charges shall have been created shall have been paid
or discharged); the fair value, or any sale, bid or asked price to be applied
in determining the fair value, of any asset owned or held by the Corporation;
any matter relating to the acquisition, holding and disposition of any assets
by the Corporation; or any other matter relating to the business and affairs of
the Corporation.

                                  ARTICLE VII

                                     STOCK

         7.1     Authorized Stock.  The total number of shares of Stock which
the Corporation has authority to issue is three hundred seventy million
(370,000,000) shares, initially





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<PAGE>   7
consisting of (i) fifty million (50,000,000) shares of Preferred Stock, par
value $.01 per share; (ii) three hundred million (300,000,000) shares of Common
Stock, par value $.01 per share; and (iii) twenty million (20,000,000) shares
of Excess Stock, par value $.01 per share.  The aggregate par value of all the
shares of all classes of Stock is $3,700,000.  If shares of one class of Stock
are classified or reclassified into shares of another class of Stock pursuant
to this Article VII, the number of authorized shares of the former class shall
be automatically decreased and the number of shares of the latter class shall
be automatically increased, in each case by the number of shares so classified
or reclassified, so that the aggregate number of shares of Stock of all classes
that the Corporation has authority to issue shall not be more than the total
number of shares of Stock set forth in the first sentence of this paragraph.

         7.2     Preferred Stock.  Subject to any limitations prescribed by
law, the Board of Directors is expressly authorized to classify any unissued
shares of Preferred Stock and reclassify any previously classified but unissued
shares of Preferred Stock of any series from time to time, in one or more
classes or series of such Stock and, by filing articles supplementary with the
Department, to establish or change from time to time the number of shares to be
included in each such class or series, and to fix the preferences, conversion
or other rights, voting powers, restrictions, limitations as to dividends and
other distributions, qualifications and terms and conditions of redemption of
each class or series.  Any action by the Board of Directors under this Section
7.2 of Article VII shall require the affirmative vote of a majority of the
Directors then in office; provided, however, that by the affirmative vote of a
majority of the Directors then in office, the Board of Directors may appoint a
committee to act on behalf of the Board of Directors under this Section 7.2,
and in such event the affirmative vote of a majority of the members of such
committee then in office shall be required for any action under this Section
7.2.

         At the time of acceptance for record of these Articles, the Board of
Directors had duly divided and classified 18,238,800 shares of Preferred Stock
into seven series of Preferred Stock.  The rights, preferences and privileges
of these series are set forth herein in Article XIV.

         7.3     Common Stock.  Subject to all of the rights, powers and
preferences of the Preferred Stock and except as provided by law or in this
Article VII or Article XIV (or in any articles supplementary regarding any
class or series of Preferred Stock):

                 7.3.1  Voting Rights.  The holders of shares of Common Stock
         shall be entitled to vote for the election of Directors and on all
         other matters requiring stockholder action, and each holder of shares
         of Common Stock shall be entitled to one vote for each share of Common
         Stock held by such stockholder.

                 7.3.2  Dividend Rights.  Holders of Common Stock shall be
         entitled to receive such dividends and other distributions in cash,
         Stock or property of the Corporation as may be authorized and declared
         by the Board of Directors upon the Common Stock  and, if any Excess
         Stock resulting from the conversion of Common Stock is then
         outstanding, such Excess Stock out of any assets or funds of the
         Corporation legally available therefor, but only when and as
         authorized by the Board of Directors or any





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         authorized committee thereof from time to time, and shall share
         ratably with the holders of such Excess Stock resulting from the
         conversion of Common Stock in any such dividend or distribution.

                 Before payment of any dividends or other distributions, there
         may be set aside out of any assets of the Corporation available for
         dividends or other distributions such sum or sums as the Board of
         Directors may from to time, in its absolute discretion, think proper
         as a reserve fund for contingencies, for equalizing dividends or other
         distributions, for repairing or maintaining any property of the
         Corporation or for such other purpose as the Board of Directors shall
         determine to be in the best interest of the Corporation, and the Board
         of Directors may modify or abolish any such reserve in the manner in
         which it was created.

                 7.3.3  Rights Upon Liquidation.  Upon the voluntary or
         involuntary liquidation, dissolution or winding up of the Corporation,
         subject to the rights of holders of any shares of Preferred Stock and
         Excess Stock resulting from the conversion of Preferred Stock, the net
         assets of the Corporation available for distribution to the holders of
         Common Stock, and, if any Excess Stock resulting from the conversion
         of Common Stock is then outstanding, such Excess Stock, shall be
         distributed pro rata to such holders in proportion to the number of
         shares of Common Stock and such Excess Stock held by each.

         7.4     Excess Stock.  For the purposes of this Section 7.4, terms not
otherwise defined shall have the meanings set forth in Article IX.

                 7.4.1    Conversion into Excess Stock.

                          (a)     If, notwithstanding the other provisions
                 contained in these Articles, prior to the Restriction
                 Termination Date, there is a purported Transfer or
                 Non-Transfer Event such that any Person (other than a
                 Look-Through Entity) would Beneficially Own shares of Equity
                 Stock in excess of the Ownership Limit, or such that any
                 Person that is a Look-Through Entity would Beneficially Own
                 shares of Equity Stock in excess of the Look-Through Limit,
                 then, (i) except as otherwise provided in Section 9.4 of
                 Article IX, the purported transferee shall be deemed to be a
                 Prohibited Owner and shall acquire no right or interest (or,
                 in the case of a Non-Transfer Event, the Person holding record
                 title to the shares of Equity Stock Beneficially Owned by such
                 Beneficial Owner shall cease to own any right or interest) in
                 such number of shares of Equity Stock which would cause such
                 Beneficial Owner to Beneficially Own shares of Equity Stock in
                 excess of the Ownership Limit or the Look-Through Limit, as
                 the case may be, (ii) such number of shares of Equity Stock in
                 excess of the Ownership Limit or the Look-Through Limit, as
                 the case may be (rounded up to the nearest whole share), shall
                 be automatically converted into an equal number of shares of
                 Excess Stock and transferred to a Trust in accordance with
                 Section 7.4.4 of this Article VII and (iii) the Prohibited
                 Owner shall submit the





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                 certificates representing such number of shares of Equity
                 Stock to the Corporation, accompanied by all requisite and
                 duly executed assignments of transfer thereof, for
                 registration in the name of the Trustee of the Trust.  If the
                 shares of Equity Stock that are converted into Excess Stock
                 are not shares of Common Stock, then the Excess Stock into
                 which they are converted shall be deemed to be a separate
                 series of Excess Stock with a designation and title
                 corresponding to the designation and title of the shares that
                 have been converted into the Excess Stock.  Such conversion
                 into Excess Stock and transfer to a Trust shall be effective
                 as of the close of trading on the Trading Day prior to the
                 date of the purported Transfer or Non-Transfer Event, as the
                 case may be, even though the certificates representing the
                 shares of Equity Stock so converted may be submitted to the
                 Corporation at a later date.

                          (b)     If, notwithstanding the other provisions
                 contained in these Articles, prior to the Restriction
                 Termination Date there is a purported Transfer or Non-Transfer
                 Event that, if effective, would (i) result in the Corporation
                 being "closely held" within the meaning of Section 856(h) of
                 the Code, (ii) cause the Corporation to Constructively Own 10%
                 or more of the ownership interest in a tenant of the
                 Corporation's or a Subsidiary's real property within the
                 meaning of Section 856(d)(2)(B) of the Code or (iii) result in
                 the shares of Equity Stock being beneficially owned by fewer
                 than 100 persons within the meaning of Section 856(a)(5) of
                 the Code, then (x) the purported transferee shall be deemed to
                 be a Prohibited Owner and shall acquire no right or interest
                 (or, in the case of a Non-Transfer Event, the Person holding
                 record title of the shares of Equity Stock with respect to
                 which such Non-Transfer Event occurred shall cease to own any
                 right or interest) in such number of shares of Equity Stock,
                 the ownership of which by such purported transferee or record
                 holder would (A) result in the Corporation being "closely
                 held" within the meaning of Section 856(h) of the Code, (B)
                 cause the Corporation to Constructively Own 10% or more of the
                 ownership interests in a tenant of the Corporation's or a
                 Subsidiary's real property within the meaning of Section
                 856(d)(2)(B) of the Code or (c) result in the shares of Equity
                 Stock being beneficially owned by fewer than 100 persons
                 within the meaning of Section 856(a)(5) of the Code, (y) such
                 number of shares of Equity Stock (rounded up to the nearest
                 whole share) shall be automatically converted into an equal
                 number of shares of Excess Stock and transferred to a Trust in
                 accordance with Section 7.4.4 of this Article VII and (z) the
                 Prohibited Owner shall submit such number of shares of Equity
                 Stock to the Corporation, accompanied by all requisite and
                 duly executed assignments of transfer thereof, for
                 registration in the name of the Trustee of the Trust.  If the
                 shares of Equity Stock that are converted into Excess Stock
                 are not shares of Common Stock, then the Excess Stock into
                 which they are converted shall be deemed to be a separate
                 series of Excess Stock with a designation and title
                 corresponding to the designation and title of the shares that
                 have been converted into the Excess Stock.  Such conversion
                 into Excess Stock and transfer to a Trust shall be effective
                 as of the close of trading on the Trading





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<PAGE>   10
                 Day prior to the date of the purported Transfer or
                 Non-Transfer Event, as the case may be, even though the
                 certificates representing the shares of Equity Stock so
                 converted may be submitted to the Corporation at a later date.

                          (c)     Upon the occurrence of such a conversion of
                 shares of Equity Stock into an equal number of shares of
                 Excess Stock, such shares of Equity Stock shall be
                 automatically retired and canceled, without any action
                 required by the Board of Directors of the Corporation, and
                 shall thereupon be restored to the status of authorized but
                 unissued shares of the particular class or series of Equity
                 Stock from which such Excess Stock was converted and may be
                 reissued by the Corporation as that particular class or series
                 of Equity Stock.

                 7.4.2    Remedies for Breach.  If the Corporation, or its
         designees, shall at any time determine in good faith that a Transfer
         has taken place in violation of Section 9.2 of Article IX or that a
         Person intends to acquire or has attempted to acquire Beneficial
         Ownership or Constructive Ownership of any shares of Equity Stock in
         violation of Section 9.2 of Article IX, the Corporation shall take
         such action as it deems advisable to refuse to give effect to or to
         prevent such Transfer or acquisition, including, but not limited to,
         refusing to give effect to such Transfer on the stock transfer books
         of the Corporation or instituting proceedings to enjoin such Transfer
         or acquisition, but the failure to take any such action shall not
         affect the automatic conversion of shares of Equity Stock into Excess
         Stock and their transfer to a Trust in accordance with Section 7.4.4.

                 7.4.3    Notice of Restricted Transfer.  Any Person who
         acquires or attempts to acquire shares of Equity Stock in violation of
         Section 9.2 of Article IX, or any Person who owns shares of Equity
         Stock that were converted into shares of Excess Stock and transferred
         to a Trust pursuant to Sections 7.4.1 and 7.4.4 of this Article VII,
         shall immediately give written notice to the Corporation of such event
         and shall provide to the Corporation such other information as the
         Corporation may request in order to determine the effect, if any, of
         such Transfer or Non-Transfer Event, as the case may be, on the
         Corporation's status as a REIT.

                 7.4.4    Ownership in Trust.  Upon any purported Transfer or
         Non-Transfer Event that results in Excess Stock pursuant to Section
         7.4.1 of this Article VII, (i) the Corporation shall create, or cause
         to be created, a Trust, and shall designate a Trustee and name a
         Beneficiary thereof and (ii) such Excess Stock shall be automatically
         transferred to such Trust to be held for the exclusive benefit of the
         Beneficiary.  Any conversion of shares of Equity Stock into shares of
         Excess Stock and transfer to a Trust shall be effective as of the
         close of trading on the Trading Day prior to the date of the purported
         Transfer or Non-Transfer Event that results in the conversion.  Shares
         of Excess Stock so held in trust shall remain issued and outstanding
         shares of Stock of the Corporation.

                 7.4.5    Dividend Rights.  Each share of Excess Stock shall be
         entitled to the





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<PAGE>   11
         same dividends and distributions (as to both timing and amount) as may
         be authorized by the Board of Directors with respect to shares of the
         same class and series as the shares of Equity Stock that were
         converted into such Excess Stock.  The Trustee, as record holder of
         the shares of Excess Stock, shall be entitled to receive all dividends
         and distributions and shall hold all such dividends or distributions
         in trust for the benefit of the Beneficiary.  The Prohibited Owner
         with respect to such shares of Excess Stock shall repay to the Trust
         the amount of any dividends or distributions received by it that are
         (i) attributable to any shares of Equity Stock that have been
         converted into shares of Excess Stock and (ii) dividends or
         distributions which were distributed by the Corporation to
         stockholders of record on a record date which was on or after the date
         that such shares were converted into shares of Excess Stock.  The
         Corporation shall take all measures that it determines reasonably
         necessary to recover the amount of any such dividend or distribution
         paid to a Prohibited Owner, including, if necessary, withholding any
         portion of future dividends or distributions payable on shares of
         Equity Stock Beneficially Owned by the Person who, but for the
         provisions of Articles VII and IX, would Constructively Own or
         Beneficially Own the shares of Equity Stock that were converted into
         shares of Excess Stock; and, as soon as reasonably practicable
         following the Corporation's receipt or withholding thereof, shall pay
         over to the Trust for the benefit of the Beneficiary the dividends so
         received or withheld, as the case may be.

                 7.4.6    Rights upon Liquidation.  In the event of any
         voluntary or involuntary liquidation of, or winding up of, or any
         distribution of the assets of, the Corporation, each holder of shares
         of Excess Stock shall be entitled to receive, ratably with each other
         holder of shares of Equity Stock of the same class and series as the
         shares which were converted into such Excess Stock and other holders
         of such Excess Stock, that portion of the assets of the Corporation
         that is available for distribution to the holders of shares of such
         class and series of Equity Stock and such Excess Stock.  The Trust
         shall distribute to the Prohibited Owner the amounts received upon
         such liquidation, dissolution, or winding up, or distribution;
         provided, however, that the Prohibited Owner shall not be entitled to
         receive amounts in excess of, in the case of a purported Transfer in
         which the Prohibited Owner gave value for shares of Equity Stock and
         which Transfer resulted in the conversion of the shares into shares of
         Excess Stock, the product of (x) the price per share, if any, such
         Prohibited Owner paid for the shares of Equity Stock and (y) the
         number of shares of Equity Stock which were so converted into Excess
         Stock, and, in the case of a Non-Transfer Event or purported Transfer
         in which the Prohibited Owner did not give value for such shares
         (e.g., if the shares were received through a gift or devise) and which
         Non-Transfer Event or purported Transfer, as the case may be, resulted
         in the conversion of the shares into shares of Excess Stock, the
         product of (x) the price per share equal to the Market Price on the
         date of such Non-Transfer Event or purported Transfer and (y) the
         number of shares of Equity Stock which were so converted into Excess
         Stock.  Any remaining amount in such Trust shall be distributed to the
         Beneficiary.

                 7.4.7    Voting Rights.  Each share of Excess Stock shall
         entitle the holder to no





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<PAGE>   12
         voting rights other than those voting rights which must accompany a
         class of Stock under Maryland law.  The Trustee, as record holder of
         the Excess Stock, shall be entitled to vote all shares of Excess Stock
         in the event voting rights are mandated by Maryland law.  Any vote by
         a Prohibited Owner as a purported holder of shares of Equity Stock
         prior to the discovery by the Corporation that such shares of Equity
         Stock have been converted into shares of Excess Stock shall, subject
         to applicable law, (i) be rescinded and shall be void ab initio with
         respect to such shares of Excess Stock and (ii) be recast in
         accordance with the desires of the Trustee acting for the benefit of
         the Beneficiary; provided, however, that if the Corporation has
         already taken irreversible corporate action, then the Trustee shall
         not have the authority to rescind and recast such vote.

                 7.4.8    Designation of Permitted Transferee.

                 (a)      As soon as practicable after the Trustee acquires
Excess Stock, but in an orderly fashion so as not to materially adversely
affect the trading price of Common Stock, the Trustee shall designate one or
more Persons as Permitted Transferees and sell to such Permitted Transferees
any shares of Excess Stock held by the Trustee; provided, however, that (i) any
Permitted Transferee so designated purchases for valuable consideration
(whether in a public or private sale) the shares of Excess Stock and (ii) any
Permitted Transferee so designated may acquire such shares of Excess Stock
without violating any of the restrictions set forth in Section 9.2 of Article
IX and without such acquisition resulting in the conversion of the shares of
Equity Stock so acquired into shares of Excess Stock and the transfer of such
shares to a Trust pursuant to Sections 7.4.1 and 7.4.4 of this Article VII.
The Trustee shall have the exclusive and absolute right to designate Permitted
Transferees of any and all shares of Excess Stock.  Prior to any transfer by
the Trustee of shares of Excess Stock to a Permitted Transferee, the Trustee
shall give not less than five Trading Days' prior written notice to the
Corporation of such intended transfer and the Corporation must have waived in
writing its purchase rights, if any, under Section 7.4.10 of this Article VII.

                 (b)      Subject to Section 7.4.8, upon the designation by the
Trustee of a Permitted Transferee in accordance with the provisions of this
Section 7.4.8, the Trustee shall cause to be transferred to the Permitted
Transferee shares of Excess Stock acquired by the Trustee pursuant to Section
7.4.4 of this Article VII.  Upon such transfer of shares of Excess Stock to the
Permitted Transferee, such shares of Excess Stock shall be automatically
converted into an equal number of shares of Equity Stock of the same class and
series which was converted into such Excess Stock.  Upon the occurrence of such
a conversion of shares of Excess Stock into an equal number of shares of Equity
Stock, such shares of Excess Stock shall be automatically retired and canceled,
without any action required by the Board of Directors of the Corporation, and
shall thereupon be restored to the status of authorized but unissued shares of
Excess Stock and may be reissued by the Corporation as Excess Stock.  The
Trustee shall (i) cause to be recorded on the stock transfer books of the
Corporation that the Permitted Transferee is the holder of record of such
number of shares of Equity Stock, and (ii) distribute to the Beneficiary any
and all amounts held with respect to such shares of Excess Stock after making
payment to the Prohibited Owner pursuant to Section 7.4.9 of this Article VII.





                                       11
<PAGE>   13
                 (c)      If the Transfer of shares of Excess Stock to a
purported Permitted Transferee would or does violate any of the transfer
restrictions set forth in Section 9.2 of Article IX, such Transfer shall be
void ab initio as to that number of shares of Excess Stock that cause the
violation of any such restriction when such shares are converted into shares of
Equity Stock (as described in clause (b) above) and the purported Permitted
Transferee shall be deemed to be a Prohibited Owner and shall acquire no rights
in such shares of Excess Stock or Equity Stock.  Such shares of Equity Stock
shall be automatically re-converted into Excess Stock and transferred to the
Trust from which they were originally Transferred.  Such conversion and
transfer to the Trust shall be effective as of the close of trading on the
Trading Day prior to the date of the Transfer to the purported Permitted
Transferee and the provisions of this Article VII shall apply to such shares,
including, without limitation, the provisions of Sections 7.4.8 through 7.4.10
with respect to any future Transfer of such shares by the Trust.

                 7.4.9    Compensation to Record Holder of Shares of Equity
         Stock That Are Converted into Shares of Excess Stock.  Any Prohibited
         Owner shall be entitled (following acquisition of the shares of Excess
         Stock and subsequent designation of and sale of Excess Stock to a
         Permitted Transferee in accordance with Section 7.4.8 of this Article
         VII or following the purchase of such shares in accordance with
         Section 7.4.10 of this Article VII) to receive from the Trustee
         following the sale or other disposition of such shares of Excess Stock
         the lesser of (i) (a) in the case of a purported Transfer in which the
         Prohibited Owner gave value for shares of Equity Stock and which
         Transfer resulted in the conversion of such shares into shares of
         Excess Stock, the product of (x) the price per share, if any, such
         Prohibited Owner paid for the shares of Equity Stock and (y) the
         number of shares of Equity Stock which were so converted into Excess
         Stock and (b) in the case of a Non-Transfer Event or purported
         Transfer in which the Prohibited Owner did not give value for such
         shares (e.g., if the shares were received through a gift or devise)
         and which Non-Transfer Event or purported Transfer, as the case may
         be, resulted in the conversion of such shares into shares of Excess
         Stock, the product of (x) the price per share equal to the Market
         Price on the date of such Non-Transfer Event or purported Transfer and
         (y) the number of shares of Equity Stock which were so converted into
         Excess Stock or (ii) the proceeds received by the Trustee from the
         sale or other disposition of such shares of Excess Stock in accordance
         with Section 7.4.8 or Section 7.4.10 of this Article VII.  Any amounts
         received by the Trustee in respect of such shares of Excess Stock and
         in excess of such amounts to be paid to the Prohibited Owner pursuant
         to this Section 7.4.9 shall be distributed to the Beneficiary in
         accordance with the provisions of Section 7.4.8 of this Article VII.
         Each Beneficiary and Prohibited Owner shall be deemed to have waived
         any and all claims that it may have against the Trustee and the Trust
         arising out of the disposition of shares of Excess Stock, except for
         claims arising out of the gross negligence or willful misconduct of,
         or any failure to make payments in accordance with this Section 7.4 of
         this Article VII, by such Trustee.

                 7.4.10    Purchase Right in Excess Stock.  Except for shares
         of Excess Stock which may result from the conversion of shares of
         Series A Preferred Stock and Series





                                       12
<PAGE>   14
         B Preferred Stock which are outstanding as of the acceptance for
         record of these Articles, which shares shall not be subject to this
         Section 7.4.10, shares of Excess Stock shall be deemed to have been
         offered for sale to the Corporation or its designee, at a price per
         share equal to the lesser of (i) the price per share in the
         transaction that created such shares of Excess Stock (or, in the case
         of a Non-Transfer Event or Transfer in which the Prohibited Owner did
         not give value for the shares (e.g., if the shares were received
         through a gift or devise), the Market Price on the date of such
         Non-Transfer Event or Transfer in which the Prohibited Owner did not
         give value for the shares) or (ii) the Market Price on the date the
         Corporation, or its designee, accepts such offer.  The Corporation
         shall have the right to accept such offer for a period of 90 days
         following the later of (a) the date of the Non-Transfer Event or
         purported Transfer which results in such shares of Excess Stock or (b)
         the date the Board of Directors first determines that a Transfer or
         Non-Transfer Event resulting in shares of Excess Stock has occurred,
         if the Corporation does not receive a notice of such Transfer or
         Non-Transfer Event pursuant to Section 7.4.3 of this Article VII.

         7.5     Classification of Stock.  The Board of Directors may classify
or reclassify any unissued shares of Stock from time to time by setting or
changing the preferences, conversion or other rights, voting powers,
restrictions, limitations as to dividends and other distributions,
qualifications, and terms and conditions of redemption for each class or
series, including, but not limited to, the reclassification of unissued shares
of Common Stock to shares of Preferred Stock or unissued shares of Preferred
Stock to shares of Common Stock or the issuance of any rights plan or similar
plan.

         7.6     Issuance of Stock.  The Board of Directors may authorize the
issuance from time to time of shares of Stock of any class or series, whether
now or hereafter authorized, or securities or rights convertible into shares of
Stock, for such consideration as the Board of Directors may deem advisable (or
without consideration in the case of a share split or dividend), subject to
such restrictions or limitations, if any, as may be set forth in these Articles
or the Bylaws of the Corporation.

         7.7     Dividends or Distributions.  The Directors may from time to
time authorize and declare and pay to stockholders such dividends or
distributions in cash, property or other assets of the Corporation or in
securities of the Corporation or from any other source as the Directors in
their discretion shall determine.

         7.8     Ambiguity.  In the case of an ambiguity in the application of
any of the provisions of this Article VII, the Board of Directors shall have
the power to determine the application of the provisions of this Article VII
with respect to any situation based on the facts known to it.

         7.9     Legend.  Except as otherwise determined by the Board of
Directors, each certificate for shares of Equity Stock shall bear substantially
the following legend:

                 "The shares of Avalon Bay Communities, Inc. (the





                                       13
<PAGE>   15
                 "Corporation") represented by this certificate are subject to
                 restrictions set forth in the Corporation's charter, as the
                 same may be amended from time to time, which prohibit in
                 general (a) any Person (other than a Look-Through Entity) from
                 Beneficially Owning shares of Equity Stock in excess of the
                 Ownership Limit, (b) any Look-Through Entity from Beneficially
                 Owning shares of Equity Stock in excess of the Look-Through
                 Ownership Limit and (c) any Person from acquiring or
                 maintaining any ownership interest in the stock of the
                 Corporation that is inconsistent with (i) the requirements of
                 the Internal Revenue Code of 1986, as amended, pertaining to
                 real estate investment trusts or (ii) the charter of the
                 Corporation, and the holder of this certificate by his, her or
                 its acceptance hereof consents to be bound by such
                 restrictions.  Capitalized terms used in this paragraph and
                 not defined herein are defined in the Corporation's charter,
                 as the same may be amended from time to time.

                 The Corporation will furnish without charge, to each
                 stockholder who so requests, a copy of the relevant provisions
                 of the charter and the bylaws, each as amended, of the
                 Corporation, a copy of the provisions setting forth the
                 designations, preferences, privileges and rights of each class
                 of stock or series thereof that the Corporation is authorized
                 to issue and the qualifications, limitations and restrictions
                 of such preferences and/or rights.  Any such request may be
                 addressed to the Secretary of the Corporation or to the
                 transfer agent named on the face hereof."

         7.10    Severability.  Each provision of this Article VII shall be
severable and an adverse determination as to any such provision shall in no way
affect the validity of any other provision.

         7.11    Articles and Bylaws.  All persons who shall acquire Stock in
the Corporation shall acquire the same subject to the provisions of these
Articles and the Bylaws.

                                  ARTICLE VIII

                        LIMITATION ON PREEMPTIVE RIGHTS

         No holder of any Stock or any other securities of the Corporation,
whether now or hereafter authorized, shall have any preferential or preemptive
rights to subscribe for or purchase any Stock or any other securities of the
Corporation other than such rights, if any, as the Board of Directors, in its
sole discretion, may fix by articles supplementary, by contract or otherwise;
and any Stock or other securities which the Board of Directors may determine to
offer for subscription may, within the Board of Directors' sole discretion, be
offered to the holders of any class, series or type of Stock or other
securities at the time outstanding to the





                                       14
<PAGE>   16
exclusion of holders of any or all other classes, series or types of Stock or
other securities at the time outstanding.


                                   ARTICLE IX

             LIMITATIONS ON TRANSFER AND OWNERSHIP OF EQUITY STOCK

         9.1     Definitions.  For purposes of this Article IX, the following
terms shall have the meanings set forth below:

                 "Beneficial Ownership," when used with respect to ownership of
shares of Equity Stock by any Person, shall mean all shares of Equity Stock
which are (i) directly owned by such Person, (ii) indirectly owned by such
Person (if such Person is an "individual" as defined in Section 542(a)(2) of
the Code) taking into account the constructive ownership rules of Section 544
of the Code, as modified by Section 856(h)(1)(B) of the Code, or (iii)
beneficially owned by such Person pursuant to Rule 13d-3 under the Securities
Exchange Act of 1934, as amended; provided, however, that in determining the
number of shares Beneficially Owned by a Person or group, no share shall be
counted more than once although applicable to two or more of clauses (i), (ii)
and (iii) of this definition or (in the case of a group) although Beneficially
Owned by more than one Person in such group.  (If a Person Beneficially Owns
shares of Equity Stock that are not actually outstanding (e.g., shares issuable
upon the exercise of an option or convertible security) ("Option Shares"),
then, whenever these Articles require a determination of the percentage of
outstanding shares of a class of Equity Stock Beneficially Owned by that
Person, the Option Shares Beneficially Owned by that Person shall also be
deemed to be outstanding.)

                 "Beneficiary" shall mean, with respect to any Trust, one or
more organizations described in each of Section 170(b)(1)(A) (other than
clauses (vii) and (viii) thereof) and Section 170(c)(2) of the Code that are
named by the Corporation as the beneficiary or beneficiaries of such Trust, in
accordance with the provisions of Section 7.4.4 of Article VII.

                 "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                 "Constructive Ownership" shall mean ownership of shares of
Equity Stock by a Person who is or would be treated as a direct or indirect
owner of such shares of Equity Stock through the application of Section 318 of
the Code, as modified by Section 856(d)(5) of the Code.  The terms
"Constructive Owner," "Constructively Owns" and "Constructively Owned" shall
have correlative meanings.

                 "Equity Stock" shall mean a particular class (other than
Excess Stock) or series of stock of the Corporation.  The use of the term
"Equity Stock" or any term defined by reference to the term "Equity Stock"
shall refer to the particular class or series of stock which is appropriate
under the context.





                                       15
<PAGE>   17
                 "Look-Through Entity" shall mean a Person that is either (i) a
trust described in Section 401(a) of the Code and exempt from tax under Section
501(a) of the Code as modified by Section 856(h)(3) of the Code or (ii)
registered under the Investment Company Act of 1940.

                 "Look-Through Ownership Limit" shall mean, with respect to a
class or series of Equity Stock, 15% of the number of outstanding shares of
such Equity Stock.

                 "Market Price" of Equity Stock on any date shall mean the
average of the Closing Price for shares of such Equity Stock for the five
consecutive Trading Days ending on such date.  The "Closing Price" on any date
shall mean (A) where there exists a public market for the Corporation's Equity
Stock, the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the shares of Equity Stock are not listed or admitted to
trading on the New York Stock Exchange, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the shares of Equity Stock
are listed or admitted to trading or, if the shares of Equity Stock are not
listed or admitted to trading on any national securities exchange, the last
quoted price, or if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the Nasdaq Stock Market,
Inc. or, if such system is no longer in use, the principal other automated
quotation system that may then be in use or (B) if no public market for the
Equity Stock exists, the Closing Price will be determined by a single,
independent appraiser selected by a committee composed of Independent Directors
which appraiser shall appraise the Market Price for such Equity Stock within
such guidelines as shall be determined by the committee of Independent
Directors.

                 "Non-Transfer Event" shall mean an event other than a
purported Transfer that would cause (a) any Person (other than a Look-Through
Entity) to Beneficially Own shares of Equity Stock in excess of the Ownership
Limit or (b) any Look-Through Entity to Beneficially Own shares of Equity Stock
in excess of the Look-Through Ownership Limit.  Non-Transfer Events include but
are not limited to (i) the granting of any option or entering into any
agreement for the sale, transfer or other disposition of shares (or of
Beneficial Ownership of shares) of Equity Stock or (ii) the sale, transfer,
assignment or other disposition of interests in any Person or of any securities
or rights convertible into or exchangeable for shares of Equity Stock or for
interests in any Person that results in changes in Beneficial Ownership of
shares of Equity Stock.

                 "Ownership Limit" shall mean, with respect to a class or
series of Equity Stock, 9.8% of the number of outstanding shares of such Equity
Stock.

                 "Permitted Transferee" shall mean any Person designated as a
Permitted Transferee in accordance with the provisions of Section 7.4.8 of
Article VII.

                 "Person" shall mean (a) an individual or any corporation,
partnership, estate,





                                       16
<PAGE>   18
trust, association, private foundation, joint stock company or any other entity
and (b) a "group" as that term is used for purposes of Section 13(d)(3) of the
Exchange Act; but shall not include an underwriter that participates in a
public offering of Equity Stock for a period of 90 days following purchase by
such underwriter of such Equity Stock.

                 "Prohibited Owner" shall mean, with respect to any purported
Transfer or Non-Transfer Event, any Person who is prevented from becoming or
remaining the owner of record title to shares of Equity Stock by the provisions
of Section 7.4.1 of Article VII.

                 "Restriction Termination Date" shall mean the first day on
which the Board of Directors, in accordance with Article VI hereof, determines
that it is no longer in the best interests of the Corporation to attempt to, or
continue to, qualify under the Code as a REIT.

                 "Trading Day" shall mean a day on which the principal national
securities exchange on which any of the shares of Equity Stock are listed or
admitted to trading is open for the transaction of business or, if none of the
shares of Equity Stock are listed or admitted to trading on any national
securities exchange, any day other than a Saturday, a Sunday or a day on which
banking institutions in the State of New York are authorized or obligated by
law or executive order to close.

                 "Transfer" (as a noun) shall mean any sale, transfer, gift,
assignment, devise or other disposition of shares (or of Beneficial Ownership
of shares) of Equity Stock, whether voluntary or involuntary, whether of
record, constructively or beneficially and whether by operation of law or
otherwise.  "Transfer" (as a verb) shall have the correlative meaning.

                 "Trust" shall mean any separate trust created and administered
in accordance with the terms of Section 7.4 of Article VII, for the exclusive
benefit of any Beneficiary.

                 "Trustee" shall mean any Person or entity, unaffiliated with
both the Corporation and any Prohibited Owner (and, if different than the
Prohibited Owner, the Person who would have had Beneficial Ownership of the
Shares that would have been owned of record by the Prohibited Owner),
designated by the Corporation to act as trustee of any Trust, or any successor
trustee thereof.

         9.2     Restriction on Ownership and Transfer.

                 (a)      (I) Except as provided in Section 9.4 of this Article
IX, until the Restriction Termination Date, (i) no Person (other than a
Look-Through Entity) shall Beneficially Own shares of Equity Stock in excess of
the Ownership Limit and (ii) no Look-Through Entity shall Beneficially Own
shares of Equity Stock in excess of the Look-Through Ownership Limit.

                 (II)  Except as provided in Section 9.4 of this Article IX,
until the Restriction Termination Date, any purported Transfer (whether or not
the result of a transaction entered into through the facilities of the New York
Stock Exchange or any other national securities





                                       17
<PAGE>   19
exchange or the Nasdaq Stock Market, Inc. or any other automated quotation
system) that, if effective, would result in any Person (other than a
Look-Through Entity) Beneficially Owning shares of Equity Stock in excess of
the Ownership Limit shall be void ab initio as to the Transfer of that number
of shares of Equity Stock which would be otherwise Beneficially Owned by such
Person in excess of the Ownership Limit, and the intended transferee shall
acquire no rights in such shares of Equity Stock.

                 (III)  Except as provided in Section 9.4 of this Article IX,
until the Restriction Termination Date, any purported Transfer (whether or not
the result of a transaction entered into through the facilities of the New York
Stock Exchange or any other national securities exchange or the Nasdaq Stock
Market, Inc. or any other automated quotation system) that, if effective, would
result in any Look-Through Entity Beneficially Owning shares of Equity Stock in
excess of the Look-Through Ownership Limit shall be void ab initio as to the
Transfer of that number of shares of Equity Stock which would be otherwise
Beneficially Owned by such Look-Through Ownership Entity in excess of the
Look-Through Ownership Limit, and the intended transferee Look-Through Entity
shall acquire no rights in such shares of Equity Stock.

                 (b)      Until the Restriction Termination Date, any purported
Transfer (whether or not the result of a transaction entered into through the
facilities of the New York Stock Exchange or any other national securities
exchange or the Nasdaq Stock Market, Inc. or any other automated quotation
system) of shares of Equity Stock that, if effective, would result in the
Corporation being "closely held" within the meaning of Section 856(h) of the
Code shall be void ab initio as to the Transfer of that number of shares of
Equity Stock that would cause the Corporation to be "closely held" within the
meaning of Section 856(h) of the Code, and the intended transferee shall
acquire no rights in such shares of Equity Stock.

                 (c)      Until the Restriction Termination Date, any purported
Transfer (whether or not the result of a transaction entered into through the
facilities of the New York Stock Exchange or any other national securities
exchange or the Nasdaq Stock Market, Inc. or any other automated quotation
system) of shares of Equity Stock that, if effective, would cause the
Corporation to Constructively Own 10% or more of the ownership interests in a
tenant of the real property of the Corporation or any direct or indirect
subsidiary (whether a corporation, partnership, limited liability company or
other entity) of the Corporation (a "Subsidiary"), within the meaning of
Section 856(d)(2)(B) of the Code, shall be void ab initio as to the Transfer of
that number of shares of Equity Stock that would cause the Corporation to
Constructively Own 10% or more of the ownership interests in a tenant of the
real property of the Corporation or a Subsidiary within the meaning of Section
856(d)(2)(B) of the Code, and the intended transferee shall acquire no rights
in such shares of Equity Stock.

                 (d)      Until the Restriction Termination Date, any purported
Transfer (whether or not the result of a transaction entered into through the
facilities of the New York Stock Exchange or any other national securities
exchange or the Nasdaq Stock Market, Inc. or any other automated quotation
system) that, if effective, would result in shares of Equity Stock being
beneficially owned by fewer than 100 persons within the meaning of Section
856(a)(5) of





                                       18
<PAGE>   20
the Code shall be void ab initio and the intended transferee shall acquire no
rights in such shares of Equity Stock.

         9.3     Owners Required to Provide Information.  Until the Restriction
Termination Date:

                 (a)      Every Beneficial Owner of more than 5%, or such lower
percentages as are then required pursuant to regulations under the Code, of the
outstanding shares of any class or series of Equity Stock of the Corporation as
of any dividend record date on the Corporation's Equity Stock shall, within 30
days after January 1 of each year, provide to the Corporation a written
statement or affidavit stating the name and address of such Beneficial Owner,
the number of shares of Equity Stock Beneficially Owned by such Beneficial
Owner as of each such dividend record date, and a description of how such
shares are held.  Each such Beneficial Owner shall provide to the Corporation
such additional information as the Corporation may request in order to
determine the effect, if any, of such Beneficial Ownership on the Corporation's
status as a REIT and to ensure compliance with the Ownership Limit.

                 (b)      Each Person who is a Beneficial Owner of shares of
Equity Stock and each Person (including the stockholder of record) who is
holding shares of Equity Stock for a Beneficial Owner shall provide to the
Corporation a written statement or affidavit stating such information as the
Corporation may request in order to determine the Corporation's status as a
REIT and to ensure compliance with the Ownership Limit.

         9.4.    Exception.  The Board of Directors, upon receipt of a ruling
from the Internal Revenue Service or an opinion of counsel or other evidence or
undertakings acceptable to it, may, in its sole discretion, waive the
application of the Ownership Limit or the Look-Through Ownership Limit to a
Person subject, as the case may be, to any such limit, provided that (A) the
Board of Directors obtains such representations and undertakings from such
Person as are reasonably necessary to ascertain that such Person's Beneficial
Ownership or Constructive Ownership of shares of Equity Stock will now and in
the future (i) not result in the Corporation being "closely held" within the
meaning of Section 856(h) of the Code, (ii) not cause the Corporation to
Constructively Own 10% or more of the ownership interests of a tenant of the
Corporation or a Subsidiary within the meaning of Section 856(d)(2)(B) of the
Code and to violate the 95% gross income test of Section 856(c)(2) of the Code,
and (iii) not result in the shares of Equity Stock of the Corporation being
beneficially owned by fewer than 100 persons within the meaning of Section
856(a)(5) of the Code, and (B) such Person agrees in writing that any violation
or attempted violation of (x) such other limitation as the Board of Directors
may establish at the time of such waiver with respect to such Person or (y)
such other restrictions and conditions as the Board of Directors may in its
sole discretion impose at the time of such waiver with respect to such Person,
will result, as of the time of such violation even if discovered after such
violation, in the conversion of such shares in excess of the original limit
applicable to such Person into shares of Excess Stock pursuant to Section 7.4.1
of Article VII.





                                       19
<PAGE>   21
         9.5     New York Stock Exchange Transactions.  Notwithstanding any
provision contained herein to the contrary, nothing in these Articles shall
preclude the settlement of any transaction entered into through the facilities
of the New York Stock Exchange or any other national securities exchange or the
Nasdaq Stock Market, Inc. or any other automated quotation system.  In no event
shall the existence or application of the preceding sentence have the effect of
deterring or preventing the conversion of Equity Stock into Excess Stock as
contemplated herein.

         9.6     Ambiguity.  In the case of an ambiguity in the application of
any of the provisions of this Article IX, including any definition contained in
Section 9.1 of this Article IX, the Board of Directors shall have the power to
determine the application of the provisions of this Article IX with respect to
any situation based on the facts known to it.

         9.7     Remedies Not Limited.  Except as set forth in Section 9.5 of
this Article IX, nothing contained in this Article IX or Article VII shall
limit the authority of the Corporation to take such other action as it deems
necessary or advisable to protect the Corporation and the interests of its
stockholders by preservation of the Corporation's status as a REIT and to
ensure compliance with the Ownership Limit or the Look-Through Ownership Limit.

                                   ARTICLE X

                       RIGHTS AND POWERS OF CORPORATION,
                        BOARD OF DIRECTORS AND OFFICERS

         In carrying on its business, or for the purpose of attaining or
furthering any of its objects, the Corporation shall have all of the rights,
powers and privileges granted to corporations by the laws of the State of
Maryland, as well as the power to do any and all acts and things that a natural
person or partnership could do as now or hereafter authorized by law, either
alone or in partnership or conjunction with others.  In furtherance and not in
limitation of the powers conferred by statute, the powers of the Corporation
and of the Directors and stockholders shall include the following:

         10.1    Conflicts of Interest.  Any Director or officer individually,
or any firm of which any Director or officer may be a member, or any
corporation or association of which any Director or officer may be a director
or officer or in which any Director or officer may be interested as the holder
of any amount of its Stock or otherwise, may be a party to, or may be
pecuniarily or otherwise interested in, any contract or transaction of the
Corporation, and, in the absence of fraud, no contract or other transaction
shall be thereby affected or invalidated; provided, however, that (a) such fact
shall have been disclosed or shall have been known to the Board of Directors or
the committee thereof that approved such contract or transaction and such
contract or transaction shall have been approved or ratified by the affirmative
vote of a majority of the disinterested Directors, or (b) such fact shall have
been disclosed or shall have been known to the stockholders entitled to vote,
and such contract or transaction shall have been approved or ratified by a
majority of the votes cast by the stockholders entitled to vote, other than the
votes of shares owned of record or beneficially by the interested Director or





                                       20
<PAGE>   22
corporation, firm or other entity, or (c) the contract or transaction is fair
and reasonable to the Corporation.  Any Director of the Corporation who is also
a director or officer of or interested in such other corporation or
association, or who, or the firm of which he is a member, is so interested, may
be counted in determining the existence of a quorum at any meeting of the Board
of Directors of the Corporation which shall authorize any such contract or
transaction, with like force and effect as if he were not such director or
officer of such other corporation or association or were not so interested or
were not a member of a firm so interested.

         10.2    Amendment of Articles.  The Corporation reserves the right,
from time to time, to make any amendment of its Articles, now or hereafter
authorized by law, including any amendment which alters the contract rights, as
expressly set forth in its Articles, of any outstanding Stock.

         No amendment or repeal of these Articles shall be made unless the same
is first approved by the Board of Directors pursuant to a resolution adopted by
the Board of Directors in accordance with the MGCL, and, except as otherwise
provided by law, thereafter approved by the stockholders.

         Whenever any vote of the holders of voting stock is required to amend
or repeal any provision of these Articles, then in addition to any other vote
of the holders of voting stock that is required by these Articles, the
affirmative vote of the holders of a majority of the outstanding shares of
Stock of the Corporation entitled to vote on such amendment or repeal, voting
together as a single class, and the affirmative vote of the holders of a
majority of the outstanding shares of each class entitled to vote thereon as a
class, shall be required to amend or repeal any provision of these Articles;
provided, however, that the affirmative vote of the holders of not less than
two-thirds of the outstanding shares entitled to vote on such amendment or
repeal, voting together as a single class, and the affirmative vote of the
holders of not less than two-thirds of the outstanding shares of each class
entitled to vote thereon as a class, shall be required to amend or repeal any
of the provisions of Sections 6.4, 6.5 or 6.6 of Article VI, Article X or
Article XII of these Articles.

                                   ARTICLE XI

                                INDEMNIFICATION

         The Corporation (which for the purpose of this Article XI shall
include predecessor entities of the Corporation as set forth in Section 2-418
of the MGCL) shall have the power to the maximum extent permitted by Maryland
law in effect from time to time, to obligate itself to indemnify, and to pay or
reimburse reasonable expenses in advance of final disposition of a proceeding
to, (a) any individual who is a present or former Director or officer of the
Corporation or (b) any individual who, while a Director of the Corporation and
at the request of the Corporation, serves or has served as a director, officer,
partner or trustee of another corporation, real estate investment trust,
partnership, joint venture, trust, employee benefit plan or any other
enterprise from and against any claim or liability to which such person may
become subject or which such person may incur by reason of his status as a
present or former





                                       21
<PAGE>   23
Director or officer of the Corporation.  The Corporation shall have the power,
with the approval of the Board of Directors, to provide such indemnification
and advancement of expenses to a person who served a predecessor of the
Corporation in any of the capacities described in (a) or (b) above and to any
employee or agent of the Corporation or a predecessor of the Corporation.

                                  ARTICLE XII

                            LIMITATION OF LIABILITY

         To the fullest extent permitted under the MGCL as in effect on the
date of filing these Articles or as the MGCL is thereafter amended from time to
time, no Director or officer shall be liable to the Corporation or its
stockholders for money damages.  Neither the amendment or the repeal of this
Article, nor the adoption of any other provision in the Corporation's Articles
inconsistent with this Article, shall eliminate or reduce the protection
afforded by this Article to a Director or officer of the Corporation with
respect to any matter which occurred, or any cause of action, suit or claim
which but for this Article would have accrued or arisen, prior to such
amendment, repeal or adoption.

                                 ARTICLE XIII

                                 MISCELLANEOUS

         13.1  Provisions in Conflict with Law or Regulations.

                 (a)      The provisions of these Articles are severable, and
if the Directors shall determine that any one or more of such provisions are in
conflict with the REIT provisions of the Code, or other applicable federal or
state laws, the conflicting provisions shall be deemed never to have
constituted a part of these Articles, even without any amendment of these
Articles pursuant to Section 10.2 hereof; provided, however, that such
determination by the Directors shall not affect or impair any of the remaining
provisions of these Articles or render invalid or improper any action taken or
omitted prior to such determination.  No Director shall be liable for making or
failing to make such a determination.

                 (b)      If any provision of these Articles or any application
of such provision shall be held invalid or unenforceable by any federal or
state court having jurisdiction, such holding shall not in any manner affect or
render invalid or unenforceable such provision in any other jurisdiction, and
the validity of the remaining provisions of these Articles shall not be
affected.  Other applications of such provision shall be affected only to the
extent necessary to comply with the determination of such court.

                                  ARTICLE XIV

                      DESIGNATED SERIES OF PREFERRED STOCK





                                       22
<PAGE>   24
         14.1    Series A Preferred Stock.  The Board of Directors has duly
divided and classified 2,308,800 shares of the Preferred Stock of the
Corporation into a series designated Series A Preferred Stock and has provided
for the issuance of such series.  Subject in all cases to the provisions of
Section 7.4 of Article VII and Article IX of the Articles with respect to
Excess Stock, the following is a description of the preferences, conversion and
other rights, voting powers, restrictions, limitations as to dividends,
qualifications and terms and conditions of redemption of the Series A Preferred
Stock of the Corporation:

                 14.1.1       Designation and Amount.  The designation of the
                 Preferred Stock         described in Section 14.1 hereof shall
                 be "Series A Preferred Stock (par value $.01 per share)"
                 (hereinafter "Series A Preferred Stock").  The number of
                 authorized shares of Series A Preferred Stock is 2,308,800.
                 The Series A Preferred Stock shall rank (a) senior to the
                 Corporation's Series E Preferred Stock (as defined in Section
                 14.5 hereof) and Common Stock, (b) on a pari passu basis with
                 the Corporation's Series B Preferred Stock (as defined in
                 Section 14.2 hereof), and (c) junior to the Corporation's
                 Series C Preferred Stock (as defined in Section 14.3 hereof),
                 Series D Preferred Stock (as defined in Section 14.4 hereof),
                 Series F Preferred Stock (as defined in Section 14.6 hereof)
                 and Series G Preferred Stock (as defined in Section 14.7
                 hereof), with respect to the payment of dividends.

                 14.1.2       Dividend Rights.

                 (a)      The holders of record of outstanding shares of Series
A Preferred Stock shall be entitled to receive, when and as authorized by the
Board of Directors, out of funds legally available therefor, cash dividends
which are (i) cumulative, (ii) preferential to the dividends paid on the
Corporation's Series E Preferred Stock and Common Stock, on a pari passu basis
to the dividends paid on the Corporation's Series B Preferred Stock, and junior
to the dividends paid on the Corporation's Series C Preferred Stock, Series D
Preferred Stock, Series F Preferred Stock and Series G Preferred Stock, and
(iii) payable at an annual rate equal to the Series A Dividend Amount, and no
more, on the fifteenth day of each February, May, August and November following
the date of original issuance of the Series A Preferred Stock (the "Series A
Original Issue Date").  Each calendar quarter immediately preceding the
fifteenth day of February, May, August and November (or if the Series A
Original Issue Date is not on the first day of a calendar quarter, the period
beginning on the date of issuance and ending on the last day of the calendar
quarter of issuance) is referred to hereinafter as a "Series A Dividend
Period."  The initial per share Series A Dividend Amount per annum shall be
equal to $1.6068. The amount of dividends payable for each full Series A
Dividend Period for the Series A Preferred Stock shall be computed by dividing
the Series A Dividend Amount by four.  The amount of dividends on the Series A
Preferred Stock payable for the initial Series A Dividend Period, or any other
period shorter or longer than a full Series A Dividend Period, shall be
computed ratably on the basis of the actual number of days in such Series A
Dividend Period.  In the event of any change in the quarterly cash dividend per
share applicable to the Common Stock, the quarterly cash dividend per share on
the Series A Preferred Stock shall be adjusted for the same dividend period by
an amount computed by multiplying the amount of the change in the Common Stock
dividend times the Series A Conversion Ratio (as defined in Section 14.1.4(a)).





                                       23
<PAGE>   25
                 (b)      In the event the Corporation shall declare a
distribution payable in (i) securities of other persons, (ii) evidences of
indebtedness issued by the Corporation or other persons, (iii) assets
(excluding cash dividends) or (iv) options or rights to purchase capital stock
or evidences of indebtedness in the Corporation or other persons, then, in each
such case for the purpose of this Section 14.1.2(b), the holders of the Series
A Preferred Stock shall be entitled to a proportionate share of any such
distribution as though they were the holders of the number of shares of Common
Stock of the Corporation into which their shares of Series A Preferred Stock
are or would be convertible (assuming such shares of Series A Preferred Stock
were then convertible).

                 (c)      The Corporation shall not (i) declare or pay or set
apart for payment any dividends or distributions on any Stock ranking as to
dividends junior to the Series A Preferred Stock (other than dividends paid in
shares of such junior Stock) or (ii) make any purchase or redemption of, or any
sinking fund payment for the purchase or redemption of, any Stock ranking as to
dividends junior to the Series A Preferred Stock (other than a purchase or
redemption made by issue or delivery of such junior Stock) unless all dividends
payable on all outstanding shares of Series A Preferred Stock for all past
Series A Dividend Periods shall have been paid in full or declared and a
sufficient sum set apart for payment thereof, provided, however, that any
moneys theretofore deposited in any sinking fund with respect to any Preferred
Stock of the Corporation in compliance with the provisions of such sinking fund
may thereafter be applied to the purchase or redemption of such Preferred Stock
in accordance with the terms of such sinking fund.

                 (d)      All dividends declared on shares of Series A
Preferred Stock and any other class of Preferred Stock or series thereof
ranking on a parity as to dividends with the Series A Preferred Stock shall be
declared pro rata, so that the amounts of dividends declared per share on the
Series A Preferred Stock for the Series A Dividend Period of the Series A
Preferred Stock ending either on the same day or within the dividend period of
such other Stock shall, in all cases, bear to each other the same ratio that
accrued dividends per share on the shares of Series A Preferred Stock and such
other Stock bear to each other.


                 14.1.3       Liquidation Rights.

                 (a)      Subject to the prior rights of the Corporation's
Series C Preferred Stock, Series D Preferred Stock, Series F Preferred Stock,
Series G Preferred Stock and any class or series of Stock the terms of which
specifically provide that such Stock ranks senior to the Series A Preferred
Stock, in the event of any liquidation, dissolution, or winding up of the
Corporation, either voluntary or involuntary, the holders of Series A Preferred
Stock shall be entitled to receive, on a pari passu basis with the holders of
the Corporation's Series B Preferred Stock and prior and in preference to any
distribution of any of the assets or surplus funds of the Corporation to the
holders of Common Stock by reason of their ownership of such Stock, an amount
equal to all accrued but unpaid dividends for each share of Series A Preferred
Stock then held by them.  If





                                       24
<PAGE>   26
upon the occurrence of such event, the assets and funds thus distributed among
the holders of the Series A Preferred Stock shall be insufficient to permit the
payment to such holders of the full amounts to which they are entitled under
the preceding sentence, then, subject to any prior rights of any classes or
series of Stock, the entire assets and funds of the Corporation legally
available for distribution shall be distributed ratably to the holders of the
Series A Preferred Stock and the holders of any other shares of Stock on a
parity for liquidation purposes with the Series A Preferred Stock in proportion
to the aggregate amounts owed to each such holder.

                 (b)      Subject to any prior rights of any other class or
series of Stock, after the payment or setting apart of payment to the holders
of Series A Preferred Stock of the full preferential amounts to which they
shall be entitled pursuant to Section 14.1.3(a) above, the holders of the
Series A Preferred Stock shall be treated pari passu with the holders of the
record of Common Stock, with each holder of record of Series A Preferred Stock
being entitled to receive in addition to the amounts payable pursuant to
Section 14.1.3(a) above, that amount which such holder would be entitled to
receive if such holder had converted all its Series A Preferred Stock into
Common Stock immediately prior to the liquidating distribution in question.

                 14.1.4       Conversion.

                 (a)      Right to Convert.  Beginning on the third anniversary
of the Series A Original Issue Date, the holders of shares of Series A
Preferred Stock shall have the right, at their option, to convert each such
share, at any time and from time to time, into one (the "Series A Conversion
Ratio," which shall be subject to adjustment as hereinafter provided) fully
paid and nonassessable share of Common Stock; provided, however, that no holder
of Series A Preferred Stock shall be entitled to convert shares of such Series
A Preferred Stock into Common Stock pursuant to the foregoing provision, if, as
a result of such conversion, such person would become the Beneficial Owner of
more than 4.9% of the Corporation's outstanding Common Stock (the "4.9%
Limitation").  As used in Section 14.1 and 14.2 hereof, Beneficial Owner shall
have the meaning set forth in Rule 13d-3 under the Securities Exchange Act of
1934 (or any successor provision thereto).  Notwithstanding the foregoing, such
conversion right may be exercised at any time after the Series A Original Issue
Date and irrespective of the 4.9% Limitation (and no such limit shall apply) if
any of the following circumstances occurs:

                 (i)      For any two consecutive fiscal quarters, the
         aggregate amount outstanding as of the end of the quarter under (1)
         all mortgage indebtedness of the Corporation and its consolidated
         entities and (2) unsecured indebtedness of the Corporation and its
         consolidated entities exceeds sixty-five percent (65%) of the amount
         arrived at by (A) taking the Corporation's consolidated gross revenues
         less property-related expenses, including real estate taxes,
         insurance, maintenance and utilities, but excluding depreciation,
         amortization, interest and corporate general and administrative
         expenses, for the quarter in question and the immediately preceding
         quarter, (B) multiplying the amount in clause (A) by two (2), and (C)
         dividing the resulting product in clause (B) by nine percent (9%) (all
         as such items of indebtedness, revenues and expenses are reported in
         consolidated financial statements contained in the Corporation's Forms
         10-K and Forms 10-Q as filed with the Securities and Exchange
         Commission); or





                                       25
<PAGE>   27
                 (ii)     Gilbert M. Meyer has ceased to be an executive
         officer of the Corporation, unless the holders of a majority of the
         shares of the Series A Preferred Stock then outstanding have voted on
         and approved a replacement for Mr. Meyer and the replacement remains
         an executive officer of the Corporation; or

                 (iii)    If (A) the Corporation shall be party to, or shall
         have entered into an agreement for, any transaction (including,
         without limitation, a merger, consolidation, statutory share exchange
         or sale of all or substantially all of its assets (each of the
         foregoing a "Series A Transaction")), in each case as a result of
         which shares of Common Stock shall have been or will be converted into
         the right to receive stock, securities or other property (including
         cash or any combination thereof) or which has resulted or will result
         in the holders of Common Stock immediately prior to the Series A
         Transaction owning less than 50% of the Common Stock after the Series
         A Transaction, or (B) a "change of control" as defined in the next
         sentence occurs with respect to the Corporation.  A change of control
         shall mean the acquisition (including by virtue of a merger, share
         exchange or other business combination) by one stockholder or a group
         of stockholders acting in concert of the power to elect a majority of
         the Corporation's Board of Directors.  The Corporation shall notify
         the holders of Series A Preferred Stock promptly if any of the events
         listed in this Section 14.1.4(a)(iii) shall occur.  Calculations set
         forth in Section 14.1.4(a)(i) shall be made without regard to
         unconsolidated indebtedness incurred as a joint venture partner, and
         the effect of any unconsolidated joint venture, including any income
         from such unconsolidated joint venture, shall be excluded for purposes
         of the calculation set forth in Section 14.1.4(a)(i).

                 (b)      Mandatory Conversion.  On the tenth anniversary of
the Series A Original Issue Date (the "Series A Mandatory Conversion Date"),
each issued and outstanding share of Series A Preferred Stock which has not
been converted to Common Stock shall mandatorily convert to that number of
fully paid and nonassessable shares of Common Stock equal to the Series A
Conversion Ratio, as adjusted, regardless of the 4.9% Limitation.  From and
after the Series A Mandatory Conversion Date, certificates representing shares
of Series A Preferred Stock shall be deemed to represent the shares of Common
Stock into which they have been converted.  Following the Series A Mandatory
Conversion Date, the holder of certificates for Series A Preferred Stock may
surrender those certificates at the office of any transfer agent for the Common
Stock, or if there is no such transfer agent, at the principal offices of the
Corporation, or at such other office as may be designated by the Corporation,
accompanied by instructions from the holder as to the name(s) and address(es)
in which such holder wishes the certificate(s) for the shares of Common Stock
issuable upon such conversion to be issued.  Promptly following surrender of
certificates for Series A Preferred Stock after the Series A Mandatory
Conversion Date, the Corporation shall issue and deliver at such office a
certificate or certificates for the number of whole shares of Common Stock
issuable upon mandatory conversion of the Series A Preferred Stock to the
person(s) entitled to receive the same.  For purposes of Sections 14.1.4(d) and
14.1.4(e) below, the Series A Mandatory Conversion Date shall constitute the
Series A Conversion Date.

                 (c)      Procedure for Conversion.  In order to exercise its
right to convert shares





                                       26
<PAGE>   28
of Series A Preferred Stock into Common Stock, the holder of shares of Series A
Preferred Stock shall surrender the certificate(s) therefor, duly endorsed if
the Corporation shall so require, or accompanied by appropriate instruments of
transfer satisfactory to the Corporation, at the office of any transfer agent
for the Series A Preferred Stock, or if there is no such transfer agent, at the
principal offices of the Corporation, or at such other office as may be
designated by the Corporation, together with written notice that such holder
elects to convert such shares.  Such notice shall also state the name(s) and
address(es) in which such holder wishes the certificate(s) for the shares of
Common Stock issuable upon conversion to be issued.  As soon as practicable
after a conversion, the Corporation shall issue and deliver at said office a
certificate or certificates for the number of whole shares of Common Stock
issuable upon conversion of the shares of Series A Preferred Stock duly
surrendered for conversion, to the person(s) entitled to receive the same.
Shares of Series A Preferred Stock shall be deemed to have been converted
immediately prior to the close of business on the date on which the
certificates therefor and notice of intention to convert the same are duly
received by the Corporation in accordance with the foregoing provisions, and
the person(s) entitled to receive the Common Stock issuable upon such
conversion shall be deemed for all purposes as record holder(s) of such Common
Stock as of the close of business on such date (hereinafter, the "Series A
Conversion Date").

                 (d)      Fractional Shares.  No fractional shares shall be
issued upon conversion of the Series A Preferred Stock into Common Stock, and
the number of shares of Common Stock to be issued shall be rounded to the
nearest whole share.  As to any final fraction of a share which the holder of
one or more shares of Series A Preferred Stock would be entitled to receive
upon exercise of his conversion right the Corporation shall pay a cash
adjustment in an amount equal to the same fraction of the last sale price (or
bid price if there were no sales) per share of Common Stock on the New York
Stock Exchange on the business day which next precedes the Series A Conversion
Date or, if such Common Stock is not then listed on the New York Stock
Exchange, of the market price per share (as determined in a manner prescribed
by the Board of Directors of the Corporation) at the close of business on the
business day which next precedes the Series A Conversion Date.

                 (e)      Payment of Adjusted Accrued Dividends Upon
Conversion.  On the next dividend payment date (or such later date as is
permitted in this Section 14.1.4(e)) following any Series A Conversion Date
hereunder, the Corporation shall pay in cash Series A Adjusted Accrued
Dividends (as defined below) on shares of Series A Preferred Stock so
converted.  The holder shall be entitled to receive accrued and unpaid
dividends accrued to and including the Series A Conversion Date on the shares
of Series A Preferred Stock converted (assuming that such dividends accrue
ratably each day that such shares are outstanding), less an amount equal to the
pre-conversion portion of the dividends paid on the shares of Common Stock
issued upon such conversion (the "Series A Conversion Stock").  (The record
date for the Series A Conversion Stock which occurs after the Series A
Conversion Date is hereinafter referred to as the "Series A Subsequent Record
Date.")  The pre-conversion portion of such Series A Conversion Stock dividend
means that portion of such dividend as is attributable to the period that (i)
begins on the day after the last Series A Conversion Stock dividend record date
occurring before such Series A Subsequent Record Date and (ii) ends on such
Series A Conversion Date, assuming that such dividends accrue ratably during
the period.  The term "Series A Adjusted





                                       27
<PAGE>   29
Accrued Dividends" means the amount arrived at through the application of the
foregoing formula.  Series A Adjusted Accrued Dividends shall not be less than
zero.  The formula for Series A Adjusted Accrued Dividends shall be applied to
effectuate the Corporation's intent that the holder converting shares of Series
A Preferred Stock to Series A Conversion Stock shall be entitled to receive
dividends on such shares of Series A Preferred Stock up to and including the
Series A Conversion Date and shall be entitled to the dividends on the shares
of Series A Conversion Stock issued upon such conversion which are deemed to
accrue beginning on the first day after the Series A Conversion Date, but shall
not be entitled to dividends attributable to the same period for both the
shares of Series A Preferred Stock converted and the shares of Series A
Conversion Stock issued upon such conversion.  The Corporation shall be
entitled to withhold (to the extent consistent with the intent to avoid double
dividends for overlapping portions of Series A Preferred and Series A
Conversion Stock dividend periods) the payment of Series A Adjusted Accrued
Dividends until the applicable Series A Subsequent Record Date, even though
such date occurs after the applicable dividend payment date with respect to the
Series A Preferred Stock, in which event the Corporation shall mail to each
holder who converted Series A Preferred Stock a check for the Series A Adjusted
Accrued Dividends thereon within five (5) business days after such Series A
Subsequent Record Date.  Series A Adjusted Accrued Dividends shall be
accompanied by an explanation of how such Series A Adjusted Accrued Dividends
have been calculated.  Series A Adjusted Accrued Dividends shall not bear
interest.




                 (f)      Adjustments.

                 (i)      In the event the Corporation shall at any time (i)
         pay a dividend or make a distribution to holders of Common Stock in
         shares of Common Stock, (ii) subdivide its outstanding shares of
         Common Stock into a larger number of shares, or (iii) combine its
         outstanding shares of Common Stock into a smaller number of shares,
         the Series A Conversion Ratio shall be adjusted on the effective date
         of the dividend, distribution, subdivision or combination by
         multiplying the Series A Conversion Ratio by a fraction, the numerator
         of which shall be the number of shares of Common Stock outstanding
         immediately prior to such dividend, distribution, subdivision or
         combination and the denominator of which shall be the number of shares
         of Common Stock outstanding immediately after such dividend,
         distribution, subdivision or combination.

                 (ii)     Whenever the Series A Conversion Ratio shall be
         adjusted as herein provided, the Corporation shall cause to be mailed
         by first class mail, postage prepaid, as soon as practicable to each
         holder of record of shares of Series A Preferred Stock a notice
         stating that the Series A Conversion Ratio has been adjusted and
         setting forth the adjusted Series A Conversion Ratio, together with an
         explanation of the calculation of the same.

                 (iii)    If the Corporation shall be party to any Series A
         Transaction in each case





                                       28
<PAGE>   30
         as a result of which shares of Common Stock shall be converted into
         the right to receive stock, securities or other property (including
         cash or any combination thereof), the holder of each share of Series A
         Preferred Stock shall have the right in connection with such Series A
         Transaction to convert such share, pursuant to the optional conversion
         provisions hereof, into the number and kind of shares of stock or
         other securities and the amount and kind of property receivable upon
         such Series A Transaction by a holder of the number of shares of
         Common Stock issuable upon conversion of such share of Series A
         Preferred Stock immediately prior to such Series A Transaction.  The
         Corporation shall not be party to any Series A Transaction unless the
         terms of such Series A Transaction are consistent with the provisions
         of this Section 14.1.4(f)(iii), and it shall not consent to or agree
         to the occurrence of any Series A Transaction until the Corporation
         has entered into an agreement with the successor or purchasing entity,
         as the case may be, for the benefit of the holders of the Series A
         Preferred Stock, thereby enabling the holders of the Series A
         Preferred Stock to receive the benefits of this Section 14.1.4(f)(iii)
         and the other provisions of the Articles.  Without limiting the
         generality of the foregoing, provision shall be made for adjustments
         in the Series A Conversion Ratio which shall be as nearly equivalent
         as may be practicable to the adjustments provided for in Section
         14.1.4(f)(iii).  The provisions of this Section 14.1.4(f)(iii) shall
         similarly apply to successive Series A Transactions.

                 (iv)     In the event that the Corporation shall propose to
         effect any Series A Transaction which would result in an adjustment
         under Section 14.1.4(f)(iii), the Corporation shall cause to be mailed
         to the holders of record of Series A Preferred Stock at least 20 days
         prior to the record date for such Series A Transaction a notice
         stating the date on which such Series A Transaction is expected to
         become effective, and the date as of which it is expected that holders
         of Common Stock of record shall be entitled to exchange their shares
         of Common Stock for securities or other property deliverable upon such
         Series A Transaction.  Failure to give such notice, or any defect
         therein, shall not affect the legality or validity of such Series A
         Transaction.

                 (g)      Other.

                 (i)      The Corporation shall at all times reserve and keep
         available out of its authorized but unissued Common Stock the maximum
         number of shares of Common Stock issuable upon the conversion of all
         shares of Series A Preferred Stock then outstanding, and if at any
         time the number of authorized but unissued shares of Common Stock
         shall not be sufficient to effect the conversion of all then
         outstanding shares of the Series A Preferred Stock, in addition to
         such other remedies as shall be available to the holder of such Series
         A Preferred Stock, the Corporation shall take such corporate action as
         may, in the opinion of its counsel, be necessary to increase its
         authorized but unissued shares of Common Stock to such number of
         shares as shall be sufficient for such purposes.

                 (ii)     The Corporation shall pay any taxes that may be
         payable in respect of the issuance of shares of Common Stock upon
         conversion of shares of Series A Preferred





                                       29
<PAGE>   31
         Stock, but the Corporation shall not be required to pay any taxes
         which may be payable in respect of any transfer of shares of Series A
         Preferred Stock or any transfer involved in the issuance of shares of
         Common Stock in a name other than that in which the shares of Series A
         Preferred Stock so converted are registered, and the Corporation shall
         not be required to transfer any such shares of Series A Preferred
         Stock or to issue or deliver any such shares of Common Stock unless
         and until the person(s) requesting such transfer or issuance shall
         have paid to the Corporation the amount of any such taxes, or shall
         have established to the satisfaction of the Corporation that such
         taxes have been paid.

                 (iii)    The Corporation will not, by amendment of the
         Articles or through any reorganization, recapitalization, transfer of
         assets, consolidation, merger, dissolution, issue or sale of
         securities or any other voluntary action, avoid or seek to avoid the
         observance or performance of any of the terms to be observed or
         performed hereunder by the Corporation, but will at all times in good
         faith assist in carrying out of all the provisions of the Articles and
         in the taking of all such action as may be necessary or appropriate to
         protect the conversion rights of the holders of the Series A Preferred
         Stock against impairment.

                 (iv)     Holders of Series A Preferred Stock shall be entitled
         to receive copies of all communications by the Corporation to its
         holders of Common Stock, concurrently with the distribution to such
         shareholders.
                 14.1.5       Voting Rights.  Except as indicated in this
                 Section 14.1.5, or except as otherwise from time to time
         required by applicable law, the holders of shares of Series A
         Preferred Stock shall not be entitled to vote on any matter on
         which the holders of shares of Common Stock are entitled to
         vote, except that the holders of a majority of the outstanding
         shares of Series A Preferred Stock, voting as a separate
         class, shall be required to vote on and approve any material
         adverse change in the rights, preferences or privileges of the
         Series A Preferred Stock.  For purposes of the foregoing, the
         creation of a new class of Stock having rights, preferences or
         privileges senior to, in parity with or junior to the rights,
         preferences or privileges of the Series A Preferred Stock
         shall not be treated as a material adverse change in the
         rights, preferences or privileges of the Series A Preferred
         Stock, and the holders of Series A Preferred Stock shall not
         have any right to vote on the creation of such new class of
         Stock.  Except as provided above and as required by law, the
         holders of Series A Preferred Stock are not entitled to vote
         on any merger or consolidation involving the Corporation, on
         any share exchange or on a sale of all or substantially all of
         the assets of the Corporation.

                 14.1.6       Reacquired Shares.  Shares of Series A Preferred
                 Stock converted, redeemed or otherwise purchased or acquired
         by the Corporation shall be restored to the status of authorized but
         unissued shares of Preferred Stock without designation as to series.

         14.2    Series B Preferred Stock.  The Board of Directors has duly
divided and classified 425,000 shares of the Preferred Stock of the Corporation
into a series designated Series B Preferred Stock and has provided for the
issuance of such series.  Subject in all cases to the





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<PAGE>   32
provisions of Section 7.4 of Article VII and Article IX of the Articles with
respect to Excess Stock, the following is a description of the preferences,
conversion and other rights, voting powers, restrictions, limitations as to
dividends, qualifications and terms and conditions of redemption of the Series
B Preferred Stock of the Corporation:

                 14.2.1       Designation and Amount.  The designation of the
                 Preferred Stock described in Section 14.2 hereof shall be
         "Series B Preferred Stock (par value $.01 per share)" (hereinafter,
         the "Series B Preferred Stock").  The number of shares of the Series B
         Preferred Stock is 425,000.  The Series B Preferred Stock shall rank
         (a) senior to the Corporation's Series E Preferred Stock and Common
         Stock, (b) on a pari passu basis with the Corporation's Series A
         Preferred Stock, and (c) junior to the Corporation's Series C
         Preferred Stock, Series D Preferred Stock, Series F Preferred Stock
         and Series G Preferred Stock, with respect to the payment of
         dividends. The Series B Preferred Stock shall have identical
         preferences, voting powers, restrictions, limitations as to dividends,
         qualifications, terms and conditions of redemption, conversion and
         other rights as the Series A Preferred Stock.


                 14.2.2       Dividend Rights.

                 (a)      The holders of record of outstanding shares of Series
B Preferred Stock shall be entitled to receive, when, as and if authorized by
the Board of Directors, out of funds legally available therefor, cash dividends
which are (1) cumulative (2) preferential to the dividends paid on the
Corporation's Series E Preferred Stock and Common Stock, on a pari passu basis
with the dividends paid on the Corporation's Series A Preferred Stock, and
junior to the dividends paid on the Corporation's Series C Preferred Stock,
Series D Preferred Stock, Series F Preferred Stock and Series G Preferred
Stock, and (3) payable at an annual rate equal to the Series B Dividend Amount
(as defined below) and no more, on the fifteenth day of each February, May,
August and November following the date of original issuance of the Series B
Preferred Stock (the "Series B Original Issue Date").  Each calendar quarter
immediately preceding the fifteenth day of February, May, August and November
(or if the Series B Original Issue Date is not on the first day of a calendar
quarter, the period beginning on the date of issuance and ending on the last
day of the calendar quarter of issuance) is referred to hereinafter as a
"Series B Dividend Period."  The initial per share Series B Dividend Amount per
annum shall be equal to $1.648.  The amount of dividends payable for each full
Series B Dividend Period for each share of the Series B Preferred Stock shall
be computed by dividing the per share Series B Dividend Amount by four.  The
amount of dividends on the Series B Preferred Stock payable for the initial
Series B Dividend Period, or any other period shorter or longer than a full
Series B Dividend Period, shall be computed ratably on the basis of the actual
number of days in such Series B Dividend Period.  In the event of any change in
the quarterly cash dividend per share declared on the Common Stock, the
quarterly cash dividend per share on the Series B Preferred Stock shall be
adjusted for the same Series B Dividend Period by an amount computed by
multiplying the amount of the change in the Common Stock dividend times the
Series B Conversion Ratio (as defined in Section 14.2.4(a)).





                                       31
<PAGE>   33
                 (b)      In the event the Corporation shall declare a
distribution payable in (i) securities of other persons, (ii) evidences of
indebtedness issued by the Corporation or other persons, (iii) assets
(excluding cash dividends) or (iv) options or rights to purchase capital stock
or evidences of indebtedness in the Corporation or other persons, then, in each
such case for the purpose of this Section 14.2.2(b), the holders of the Series
B Preferred Stock shall be entitled to a proportionate share of any such
distribution as though they were the holders of the number of shares of Common
Stock of the Corporation into which their shares of Series B Preferred Stock
are or would be convertible (assuming such shares of Series B Preferred Stock
were then convertible).

                 (c)      The Corporation shall not (i) declare or pay or set
apart for payment any dividends or distributions on any Stock ranking as to
dividends junior to the Series B Preferred Stock (other than dividends paid in
shares of such junior Stock) or (ii) make any purchase or redemption of, or any
sinking fund payment for the purchase or redemption of, any Stock ranking as to
dividends junior to the Series B Preferred Stock (other than a purchase or
redemption made by issue or delivery of such junior Stock) unless all dividends
payable on all outstanding shares of Series B Preferred Stock for all past
Series B Dividend Periods shall have been paid in full or declared and a
sufficient sum set apart for payment thereof, provided, however, that any
moneys theretofore deposited in any sinking fund with respect to any Preferred
Stock of the Corporation in compliance with the provisions of such sinking fund
may thereafter be applied to the purchase or redemption of such Preferred Stock
in accordance with the terms of such sinking fund.

                 (d)      All dividends declared on shares of Series B
Preferred Stock and any other class of Preferred Stock or series thereof
ranking on a parity as to dividends with the Series B Preferred Stock and the
Series A Preferred Stock shall be declared pro rata, so that the amounts of
dividends declared per share on the Series B Preferred Stock and Series A
Preferred Stock for the Series B Dividend Period of the Series B Preferred
Stock and Series A Preferred Stock ending either on the same day or within the
dividend period of such other Stock, shall, in all cases, bear to each other
the same ratio that accrued dividends per share on the shares of Series B
Preferred Stock, Series A Preferred Stock and such other Stock bear to each
other.

                 14.2.3       Liquidation Rights.

                 (a)      Subject to any prior rights of any class or series of
Stock, in the event of any liquidation, dissolution, or winding up of the
Corporation, either voluntary or involuntary, the holders of Series B Preferred
Stock shall be entitled to receive, on a pari passu basis with the holders of
the Corporation's Series A Preferred Stock and prior and in preference to any
distribution of any of the assets or surplus funds of the Corporation to the
holders of Common Stock by reason of their ownership of such Stock, an amount
equal to all accrued but unpaid dividends for each share of Series B Preferred
Stock then held by them.  If upon the occurrence of such event, the assets and
funds thus distributed among the holders of the Series B Preferred Stock shall
be insufficient to permit the payment to such holders of the full aforesaid
amounts to which they are entitled, then, subject to any prior rights of any
classes or series of Stock, the





                                       32
<PAGE>   34
entire assets and funds of the Corporation legally available for distribution
shall be distributed ratably to the holders of the Series A Preferred Stock and
Series B Preferred Stock, and any other shares of Stock on a parity for
liquidation purposes in proportion to the aggregate amounts owed to each such
holder.

                 (b)      Subject to any prior rights of any other class or
series of Stock, after the payment or setting apart of payment to the holders
of Series B Preferred Stock of the full preferential amounts to which they
shall be entitled pursuant to Section 14.2.3(a) above, the holders of record of
the Series B Preferred Stock shall be treated pari passu with the holders of
record of Series A Preferred Stock and Common Stock, with each holder of record
of Series B Preferred Stock being entitled to receive, in addition to the
amounts payable pursuant to Section 14.2.3(a) above, that amount which such
holder would be entitled to receive if such holder had converted all its Series
B Preferred Stock into Common Stock immediately prior to the liquidating
distribution in question.

                 14.2.4       Conversion.

                 (a)      Right to Convert.  Beginning on October 2, 1998, the
holders of shares of Series B Preferred Stock shall have the right, at their
option, to convert each such share, at any time and from time to time, into one
(the "Series B Conversion Ratio," which shall be subject to adjustment as
hereinafter provided) fully paid and nonassessable share of Common Stock;
provided, however, that no holder of Series B Preferred Stock shall be entitled
to convert shares of such Series B Preferred Stock into Common Stock pursuant
to the foregoing provision, if, immediately after such conversion, such person
would be the Beneficial Owner of the Corporation's outstanding Common Stock in
an amount exceeding the 4.9% Limitation.  Notwithstanding the foregoing, such
conversion right may be exercised at any time after the Series B Original Issue
Date and irrespective of the 4.9% Limitation (and no such limit shall apply) if
any of the following circumstances occurs:

                 (i)      For any two consecutive fiscal quarters, the
         aggregate amount outstanding as of the end of the quarter under (1)
         all mortgage indebtedness of the Corporation and its consolidated
         entities and (2) unsecured indebtedness of the Corporation and its
         consolidated entities exceeds sixty-five percent (65%) of the amount
         arrived at by (A) taking the Corporation's consolidated gross revenues
         less property-related expenses, including real estate taxes,
         insurance, maintenance and utilities, but excluding depreciation,
         amortization, interest and corporate general and administrative
         expenses, for the quarter in question and the immediately preceding
         quarter, (B) multiplying the amount in clause (A) by two (2), and (C)
         dividing the resulting product in clause B by nine percent (9%) (all
         as such items of indebtedness, revenues and expenses are reported in
         consolidated financial statements contained in the Corporation's Forms
         10-K and Forms 10-Q as filed with the Securities and Exchange
         Commission); or

                 (ii)     Gilbert M. Meyer has ceased to be an executive
         officer of the Corporation, unless the holders of a majority of the
         shares of the Series B Preferred Stock then outstanding have voted on
         and approved a replacement for Mr. Meyer and the





                                       33
<PAGE>   35
         replacement remains an executive officer of the Corporation; or

                 (iii)    If (A) the Corporation shall be party to, or shall
         have entered into an agreement for, any transaction (including,
         without limitation, a merger, consolidation, statutory share exchange
         or sale of all or substantially all of its assets (each of the
         foregoing a "Series B Transaction")), in each case as a result of
         which shares of Common Stock shall have been or will be converted into
         the right to receive stock, securities or other property (including
         cash or any combination thereof) or which has resulted or will result
         in the holders of Common Stock immediately prior to the Series B
         Transaction owning less than 50% of the Common Stock after the Series
         B Transaction, or (B) a "change of control" as defined in the next
         sentence occurs with respect to the Corporation.  A change of control
         shall mean the acquisition (including by virtue of a merger, share
         exchange or other business combination) by one stockholder or a group
         of stockholders acting in concert of the power to elect a majority of
         the Corporation's Board of Directors.  The Corporation shall notify
         the holders of Series B Preferred Stock promptly if any of the events
         listed in this Section 14.2.4(a)(iii) shall occur.

         Calculations set forth in Section 14.2.4(a)(i) shall be made without
regard to unconsolidated indebtedness incurred as a joint venture partner, and
the effect of any unconsolidated joint venture, including any income from such
unconsolidated joint venture, shall be excluded for purposes of the calculation
set forth in Section 14.2.4(a)(i).

                 (b)      Mandatory Conversion.  On October 2, 2005 (the
"Series B Mandatory Conversion Date"), each issued and outstanding share of
Series B Preferred Stock which has not been converted to Common Stock shall
mandatorily convert to that number of fully paid and nonassessable shares of
Common Stock equal to the Series B Conversion Ratio, as adjusted, regardless of
the 4.9% Limitation.  From and after the Series B Mandatory Conversion Date,
certificates representing shares of Series B Preferred Stock shall be deemed to
represent the shares of Common Stock into which they have been converted.
Following the Series B Mandatory Conversion Date, the holder of certificates
for Series B Preferred Stock may surrender those certificates at the office of
any transfer agent for the Common Stock, or if there is no such transfer agent,
at the principal offices of the Corporation, or at such other office as may be
designated by the Corporation, accompanied by instructions from the holder as
to the name(s) and address(es) in which such holder wishes the certificate(s)
for the shares of Common Stock issuable upon such conversion to be issued.
Promptly following surrender of certificates for Series B Preferred Stock after
the Series B Mandatory Conversion Date, the Corporation shall issue and deliver
at such office a certificate or certificates for the number of whole shares of
Common Stock issuable upon mandatory conversion of the Series B Preferred Stock
to the person(s) entitled to receive the same.  For purposes of Sections
14.2.4(d) and 14.2.4(e) below, the Series B Mandatory Conversion Date shall
constitute the Series B Conversion Date.

                 (c)      Procedure for Conversion.  In order to exercise its
right to convert shares of Series B Preferred Stock into Common Stock, the
holder of shares of Series B Preferred Stock shall surrender the certificate(s)
therefor, duly endorsed if the Corporation shall so require, or accompanied by
appropriate instruments of transfer satisfactory to the Corporation, at the
office





                                       34
<PAGE>   36
of any transfer agent for the Series B Preferred Stock or if there is no such
transfer agent, at the principal offices of the Corporation, or at such other
office as may be designated by the Corporation, together with written notice
that such holder elects to convert such shares.  Such notice shall also state
the name(s) and address(es) in which such holder wishes the certificate(s) for
the shares of Common Stock issuable upon conversion to be issued.  As soon as
practicable after a conversion, the Corporation shall issue and deliver at said
office a certificate or certificates for the number of whole shares of Common
Stock issuable upon conversion of the shares of Series B Preferred Stock duly
surrendered for conversion, to the person(s) entitled to receive the same.
Shares of Series B Preferred Stock shall be deemed to have been converted
immediately prior to the close of business on the date on which the
certificates therefor and notice of intention to convert the same are duly
received by the Corporation in accordance with the foregoing provisions, and
the person(s) entitled to receive the Common Stock issuable upon such
conversion shall be deemed for all purposes as record holder(s) of such Common
Stock as of the close of business on such date (hereinafter, the "Series B
Conversion Date").

                 (d)      No Fractional Shares.  No fractional shares shall be
issued upon conversion of the Series B Preferred Stock into Common Stock, and
the number of shares of Common Stock to be issued shall be rounded to the
nearest whole share.  As to any final fraction of a share which the holder of
one or more shares of Series B Preferred Stock would be entitled to receive
upon exercise of his conversion right, the Corporation shall pay a cash
adjustment in an amount equal to the same fraction of the last sale price (or
bid price if there were no sales) per share of Common Stock on the New York
Stock Exchange on the business day which next precedes the Series B Conversion
Date or, if such Common Stock is not then listed on the New York Stock
Exchange, of the market price per share (as determined in a manner prescribed
by the Board of Directors of the Corporation) at the close of business on the
business day which next precedes the Series B Conversion Date.

                 (e)      Payment of Adjusted Accrued Dividends Upon
Conversion.  On the next dividend payment date (or such later date as is
permitted in this Section 14.2.4(e)) following any Series B Conversion Date
hereunder, the Corporation shall pay in cash Series B Adjusted Accrued
Dividends (as defined below) on shares of Series B Preferred Stock so
converted.  The holder shall be entitled to receive accrued and unpaid
dividends, if any, accrued to and including the Series B Conversion Date on the
shares of Series B Preferred Stock converted (assuming that such dividends
accrue ratably each day that such shares are outstanding based on the Series B
Dividend Amount for such quarter), less an amount equal to the pre-conversion
portion of the dividends paid on the shares of Common Stock issued upon such
conversion (the "Series B Conversion Stock").  (The record date for the Series
B Conversion Stock which occurs after the Series B Conversion Date is
hereinafter referred to as the "Series B Subsequent Record Date.")  The
pre-conversion portion of such Series B Conversion Stock dividend means that
portion of such dividend as is attributable to the period that (i) begins on
the day after the last Series B Conversion Stock dividend record date occurring
before such Subsequent Record Date and (ii) ends on such Series B Conversion
Date, assuming that such dividends accrue ratably during the period.  The term
"Series B Adjusted Accrued Dividends" means the amount arrived at through the
application of the foregoing formula.  Series B Adjusted Accrued Dividends
shall not be less than zero.  The formula for Series B Adjusted Accrued
Dividends shall be applied to effectuate





                                       35
<PAGE>   37
the Corporation's intent that the holder converting shares of Series B
Preferred Stock to Series B Conversion Stock shall be entitled to receive
dividends on such shares of Series B Preferred Stock up to and including the
Series B Conversion Date and shall be entitled to the dividends on the shares
of Series B Conversion Stock issued upon such conversion which are deemed to
accrue beginning on the first day after the Series B Conversion Date, but shall
not be entitled to dividends attributable to the same period for both the
shares of Series B Preferred Stock converted and the shares of Series B
Conversion Stock issued upon such conversion.  The Corporation shall be
entitled to withhold (to the extent consistent with the intent to avoid double
dividends for overlapping portions of Series B Preferred Stock and the Series B
Conversion Stock dividend periods) the payment of Series B Adjusted Accrued
Dividends until the applicable Subsequent Record Date, even though such date
occurs after the applicable dividend payment date with respect to the Series B
Preferred Stock, in which event the Corporation shall mail to each holder who
converted Series B Preferred Stock a check for the Series B Adjusted Accrued
Dividends thereon within five (5) business days after such Series B Subsequent
Record Date.  Series B Adjusted Accrued Dividends shall be accompanied by an
explanation of how such Series B Adjusted Accrued Dividends have been
calculated.  Series B Adjusted Accrued Dividends shall not bear interest.

                 (f)      Adjustments.

                 (i)      In the event the Corporation shall at any time (i)
         pay a dividend or make a distribution to holders of Common Stock in
         shares of Common Stock, (ii) subdivide its outstanding shares of
         Common Stock into a larger number of shares, or (iii) combine its
         outstanding shares of Common Stock into a smaller number of shares,
         the Series B Conversion Ratio shall be adjusted on the effective date
         of the dividend, distribution, subdivision or combination by
         multiplying the Series B Conversion Ratio by a fraction, the numerator
         of which shall be the number of shares of Common Stock outstanding
         immediately after such dividend, distribution, subdivision or
         combination and the denominator of which shall be the number of shares
         of Common Stock outstanding immediately prior to such dividend,
         distribution, subdivision or combination.

                 (ii)     Whenever the Series B Conversion Ratio shall be
         adjusted as herein provided, the Corporation shall cause to be mailed
         by first class mail, postage prepaid, as soon as practicable to each
         holder of record of shares of Series B Preferred Stock a notice
         stating that the Series B Conversion Ratio has been adjusted and
         setting forth the adjusted Series B Conversion Ratio, together with an
         explanation of the calculation of the same.

                 (iii)    If the Corporation shall be party to any Series B
         Transaction in each case as a result of which shares of Common Stock
         shall be converted into the right to receive stock, securities or
         other property (including cash or any combination thereof), the holder
         of each share of Series B Preferred Stock shall have the right in
         connection with such Series B Transaction to convert such share,
         pursuant to the optional conversion provisions hereof, into the number
         and kind of shares of stock or other securities and the amount and
         kind of property receivable upon such Series B Transaction by a holder
         of the number of shares of Common Stock issuable upon conversion of
         such share of Series B





                                       36
<PAGE>   38
         Preferred Stock immediately prior to such Series B Transaction.  The
         Corporation shall not be party to any Series B Transaction unless the
         terms of such Series B Transaction are consistent with the provisions
         of this Section 14.2.4(f)(iii), and it shall not consent to or agree
         to the occurrence of any Series B Transaction until the Corporation
         has entered into an agreement with the successor or purchasing entity,
         as the case may be, for the benefit of the holders of the Series B
         Preferred Stock, thereby enabling the holders of the Series B
         Preferred Stock to receive the benefits of this Section 14.2.4(f)(iii)
         and the other provisions of the Articles.  Without limiting the
         generality of the foregoing, provision shall be made for adjustments
         in the Conversion Ratio which shall be as nearly equivalent as may be
         practicable to the adjustments provided for in Section 14.2.4(f)(i).
         The provisions of this Section 14.2.4(f)(iii) shall similarly apply to
         successive Series B Transactions.

                 (iv)     In the event that the Corporation shall propose to
         effect any Series B Transaction which would result in an adjustment
         under Section 14.2.4(f)(iii), the Corporation shall cause to be mailed
         to the holders of record of Series B Preferred Stock at least 20 days
         prior to the record date for such Series B Transaction a notice
         stating the date on which such Series B Transaction is expected to
         become effective, and the date as of which it is expected that holders
         of Common Stock of record shall be entitled to exchange their shares
         of Common Stock for securities or other property deliverable upon such
         Series B Transaction.  Failure to give such notice, or any defect
         therein, shall not affect the legality or validity of such Series B
         Transaction.

                 (g)      Other.

                 (i)      The Corporation shall at all times reserve and keep
         available out of its authorized but unissued Common Stock the maximum
         number of shares of Common Stock issuable upon the conversion of all
         shares of Series B Preferred Stock then outstanding, and if at any
         time the number of authorized but unissued shares of Common Stock
         shall not be sufficient to effect the conversion of all then
         outstanding shares of the Series B Preferred Stock, in addition to
         such other remedies as shall be available to the holders of such
         Series B Preferred Stock, the Corporation shall take such corporate
         action as may, in the opinion of its counsel, be necessary to increase
         its authorized but unissued shares of Common Stock to such number of
         shares as shall be sufficient for such purposes.

                 (ii)     The Corporation shall pay any taxes that may be
         payable in respect of the issuance of shares of Common Stock upon
         conversion of shares of Series B Preferred Stock, but the Corporation
         shall not be required to pay any taxes which may be payable in respect
         of any transfer of shares of Series B Preferred Stock or any transfer
         involved in the issuance of shares of Common Stock in a name other
         than that in which the shares of Series B Preferred Stock so converted
         are registered, and the Corporation shall not be required to transfer
         any such shares of Series B Preferred Stock or to issue or deliver any
         such shares of Common Stock unless and until the person(s) requesting
         such transfer or issuance shall have paid to the Corporation the
         amount of any such taxes, or shall have





                                       37
<PAGE>   39
         established to the satisfaction of the Corporation that such taxes
         have been paid.

                 (iii)    The Corporation will not, by amendment of the
         Articles or through any reorganization, recapitalization, transfer of
         assets, consolidation, merger, dissolution, issue or sale of
         securities or any other voluntary action, avoid or seek to avoid the
         observance or performance of any of the terms to be observed or
         performed hereunder by the Corporation, but will at all times in good
         faith assist in carrying out of all the provisions of the Articles and
         in the taking of all such action as may be necessary or appropriate to
         protect the conversion rights of the holders of the Series B Preferred
         Stock against impairment.

                 (iv)     Holders of Series B Preferred Stock shall be entitled
         to receive copies of all communications by the Corporation to its
         holders of Common Stock, concurrently with the distribution to such
         shareholders.

                 14.2.5       Voting Rights.

                 (a)      Except as indicated in this Section 14.2.5, or except
as otherwise from time to time required by applicable law, the holders of
shares of Series B Preferred Stock will have no voting rights.

                 (b)      If six quarterly dividends (whether or not
consecutive) payable on shares of Series B Preferred Stock or on any series of
Preferred Stock which ranks pari passu with the Series B Preferred Stock as to
dividends (the "Series B Parity Stock") are in arrears, the number of Directors
then constituting the Board of Directors of the Corporation will be increased
by two, and the holders of the shares of Series B Preferred Stock, voting
together as a class with the holders of shares of any other series of Series B
Parity Stock entitled to such voting rights (any such other series, the "Series
B Voting Preferred Stock"), will have the right to elect two additional
Directors to serve on the Corporation's Board of Directors at any annual
meeting of stockholders or a properly called special meeting of the holders of
Series B Preferred Stock and such other Series B Voting Preferred Stock until
all such dividends have been declared and paid or set aside for payment.  The
term of office of all Directors so elected will terminate with the termination
of such voting rights.

                 (c)      The approval of holders of two-thirds of the
outstanding Series B Preferred Stock and all other series of Series B Voting
Preferred Stock similarly affected, voting as a single class, is required in
order to amend the Articles to affect materially and adversely the rights,
preferences or voting power of the holder of shares of Series B Preferred Stock
or the Series B Voting Preferred Stock.  For purposes of the foregoing, the
creation of a new class of Stock having rights, preferences or privileges
senior to, on a parity with or junior to the rights, preferences or privileges
of the Series B Preferred Stock shall not be treated as a material adverse
change in the rights, preferences or privileges of the Series B Preferred
Stock, and the holders of Series B Preferred Stock shall not have any right to
vote on the creation of such new class of Stock.





                                       38
<PAGE>   40
         (d)     Except as provided above and as required by law, the holders
         of Series B Preferred Stock are not entitled to vote on any merger or
         consolidation involving the Corporation, on any share exchange or on a
         sale of all or substantially all of the assets of the Corporation.

                 14.2.6       Reacquired Shares.  Shares of Series B Preferred
                 Stock converted, redeemed or otherwise purchased or acquired
         by the Corporation shall be restored to the status of authorized but
         unissued shares of Preferred Stock without designation as to series.

         14.3    8.50% Series C Cumulative Redeemable Preferred Stock.  The
Board of Directors has, by resolution, duly divided and classified 2,300,000
shares of the Preferred Stock of the Corporation into a series designated 8.50%
Series C Cumulative Redeemable Preferred Stock and has provided for the
issuance of such series.  Subject in all cases to the provisions of the
Articles, including without limitation, Section 7.4 of Article VII and Article
IX with respect to limitations on the transfer and ownership of Stock, the
following is a description of the preferences, conversion and other rights,
voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption of the 8.50% Series C Cumulative Redeemable
Preferred Stock of the Corporation:

                 14.3.1       Designation and Number.  A series of Preferred
                 Stock, designated the "8.50% Series C Cumulative Redeemable
         Preferred Stock" (the "Series C Preferred Stock"), has been
         established.  The number of authorized shares of the Series C
         Preferred Stock is 2,300,000.

                 14.3.2       Rank.  The Series C Preferred Stock shall, with
                 respect to dividend rights and rights upon liquidation,
         dissolution or winding up of the Corporation, rank (a) senior to the
         Corporation's Series A Preferred Stock, Series B Preferred Stock,
         Series E Preferred Stock and all classes or series of Common Stock of
         the Corporation, and to all equity securities issued by the
         Corporation ranking junior to such Series C Preferred Stock; (b) on a
         parity with the Corporation's Series D Preferred Stock, Series F
         Preferred Stock, Series G Preferred Stock and all other equity
         securities issued by the Corporation the terms of which specifically
         provide that such equity securities rank on a parity with the Series C
         Preferred Stock; and (c) junior to all equity securities issued by the
         Corporation the terms of which specifically provide that such equity
         securities rank senior to the Series C Preferred Stock.  The term
         "equity securities" shall not include convertible debt securities.

                 14.3.3       Dividends.

                 (a)      Holders of the then outstanding shares of Series C
Preferred Stock shall be entitled to receive, when and as authorized by the
Board of Directors, out of funds legally available for the payment of
dividends, cumulative preferential cash dividends at the rate of





                                       39
<PAGE>   41
8.50% of the $25.00 liquidation preference per annum (equivalent to a fixed
annual amount of $2.125 per share).  Such dividends shall be cumulative from
the first date on which any Series C Preferred Stock is issued and shall be
payable quarterly in arrears on or before March 15, June 15, September 15 and
December 15 of each year or, if not a business day, the next succeeding
business day (each, a "Series C Dividend Payment Date").  The first dividend,
which will be paid on September 15, 1997, will be for less than a full quarter.
Such dividend and any dividend payable on the Series C Preferred Stock for any
partial dividend period will be computed on the basis of a 360-day year
consisting of twelve 30-day months.  Dividends will be payable to holders of
record as they appear in the stock records of the Corporation at the close of
business on the applicable record date, which shall be the first day of the
calendar month in which the applicable Series C Dividend Payment Date falls or
on such other date designated by the Board of Directors of the Corporation as
the record date for the payment of dividends on the Series C Preferred Stock
that is not more than 30 nor less than 10 days prior to such Series C Dividend
Payment Date (each, a "Series C Dividend Record Date").

                 (b)      No dividends on shares of Series C Preferred Stock
shall be authorized by the Board of Directors of the Corporation or paid or set
apart for payment by the Corporation at such time as the terms and provisions
of any agreement of the Corporation, including any agreement relating to its
indebtedness, prohibits such authorization, payment or setting apart for
payment or provides that such authorization, payment or setting apart for
payment would constitute a breach thereof or a default thereunder, or if such
authorization or payment shall be restricted or prohibited by law.

                 (c)      Notwithstanding the foregoing, dividends on the
Series C Preferred Stock shall accrue whether or not the terms and provisions
set forth in Section 14.3.3(b) hereof at any time prohibit the current payment
of dividends, whether or not the Corporation has earnings, whether or not there
are funds legally available for the payment of such dividends and whether or
not such dividends are declared.  Accrued but unpaid dividends on the Series C
Preferred Stock will accumulate as of the Series C Dividend Payment Date on
which they first become payable.

                 (d)      Except as provided in Section 14.3.3(e) below, no
dividends will be declared or paid or set apart for payment on any Stock of the
Corporation or any other series of Preferred Stock ranking, as to dividends, on
a parity with or junior to the Series C Preferred Stock (other than a dividend
in shares of the Corporation's Common Stock or in any other class of Stock
ranking junior to the Series C Preferred Stock as to dividends and upon
liquidation) for any period unless full cumulative dividends have been or
contemporaneously are declared and paid or declared and a sum sufficient for
the payment thereof is set apart for such payment on the Series C Preferred
Stock for all past dividend periods and the then current dividend period.

                 (e)      When dividends are not paid in full (and a sum
sufficient for such full payment is not so set apart) upon the Series C
Preferred Stock and the shares of any other series of Preferred Stock ranking
on a parity as to dividends with the Series C Preferred Stock, all dividends
declared upon the Series C Preferred Stock and any other series of Preferred
Stock ranking on a parity as to dividends with the Series C Preferred Stock
shall be declared pro rata so that the amount of dividends declared per share
of Series C Preferred Stock and such other series





                                       40
<PAGE>   42
of Preferred Stock shall in all cases bear to each other the same ratio that
accrued dividends per share on the Series C Preferred Stock and such other
series of Preferred Stock (which shall not include any accrual in respect of
unpaid dividends for prior dividend periods if such Preferred Stock does not
have a cumulative dividend) bear to each other.  No interest, or sum of money
in lieu of interest, shall be payable in respect of any dividend payment or
payments on Series C Preferred Stock which may be in arrears.

                 (f)      Except as provided in the immediately preceding
paragraph, unless full cumulative dividends on the Series C Preferred Stock
have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for payment for all past
dividend periods and the then current dividend period, no dividends (other than
in shares of Common Stock or other shares of Stock ranking junior to the Series
C Preferred Stock as to dividends and upon liquidation) shall be declared or
paid or set aside for payment, nor shall any other distribution be declared or
made, upon the Common Stock or any other Stock of the Corporation ranking
junior to or on a parity with the Series C Preferred Stock as to dividends or
upon liquidation, nor shall any shares of Common Stock, or any other shares of
Stock of the Corporation ranking junior to or on a parity with the Series C
Preferred Stock as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made
available for a sinking fund for the redemption of any such shares) by the
Corporation (except by conversion into or exchange for other Stock of the
Corporation ranking junior to the Series C Preferred Stock as to dividends and
upon liquidation).

                 (g)      Any dividend payment made on shares of the Series C
Preferred Stock shall first be credited against the earliest accrued but unpaid
dividend due with respect to such shares which remains payable.  Holders of the
Series C Preferred Stock shall not be entitled to any dividend, whether payable
in cash, property or stock in excess of full cumulative dividends on the Series
C Preferred Stock as described above.

                 14.3.4       Liquidation Preference.

                 (a)      Upon any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Corporation, the holders of
shares of Series C Preferred Stock then outstanding are entitled to be paid out
of the assets of the Corporation legally available for distribution to its
stockholders a liquidation preference of $25.00 per share, plus an amount equal
to any accrued and unpaid dividends to the date of payment, before any
distribution of assets is made to holders of Common Stock or any other class or
series of Stock of the Corporation that ranks junior to the Series C Preferred
Stock as to liquidation rights.

                 (b)      In the event that, upon any such voluntary or
involuntary liquidation, dissolution or winding up, the available assets of the
Corporation are insufficient to pay the amount of the liquidating distributions
on all outstanding shares of Series C Preferred Stock and the corresponding
amounts payable on all shares of other classes or series of Stock of the
Corporation ranking on a parity with the Series C Preferred Stock in the
distribution of assets, then the holders of the Series C Preferred Stock and
all other such classes or series of Stock shall





                                       41
<PAGE>   43
share ratably in any such distribution of assets in proportion to the full
liquidating distributions to which they would otherwise be respectively
entitled.

                 (c)      After payment of the full amount of the liquidating
distributions to which they are entitled, the holders of Series C Preferred
Stock will have no right or claim to any of the remaining assets of the
Corporation.

                 (d)      Written notice of any such liquidation, dissolution
or winding up of the Corporation, stating the payment date or dates when, and
the place or places where, the amounts distributable in such circumstances
shall be payable, shall be given by first class mail, postage pre-paid, not
less than 30 nor more than 60 days prior to the payment date stated therein, to
each record holder of the Series C Preferred Stock at the respective addresses
of such holders as the same shall appear on the stock transfer records of the
Corporation.

                 (e)      The consolidation or merger of the Corporation with
or into any other corporation, trust or entity or of any other corporation with
or into the Corporation, or the sale, lease or conveyance of all or
substantially all of the property or business of the Corporation, shall not be
deemed to constitute a liquidation, dissolution or winding up of the
Corporation.

                 14.3.5       Redemption.

                 (a)      Right of Optional Redemption.  The Series C Preferred
Stock is not redeemable prior to June 20, 2002.  However, in order to ensure
that the Corporation remains qualified as a REIT for federal income tax
purposes, shares of Series C Preferred Stock which have been converted into
Excess Stock shall be subject to repurchase by the Corporation in accordance
with Section 7.4.10 of Article VII.  On and after June 20, 2002, the
Corporation, at its option and upon not less than 30 nor more than 60 days'
written notice, may redeem shares of the Series C Preferred Stock, in whole or
in part, at any time or from time to time, for cash at a redemption price of
$25.00 per share, plus all accrued and unpaid dividends thereon to the date
fixed for redemption (except as provided in Section 14.3.5(c) below), without
interest. If less than all of the outstanding Series C Preferred Stock is to be
redeemed, the Series C Preferred Stock to be redeemed shall be selected pro
rata (as nearly as may be practicable without creating fractional shares) or by
any other equitable method determined by the Corporation.

                 (b)      Limitations on Redemption.

                 (i)      The redemption price of the Series C Preferred Stock
         (other than the portion thereof consisting of accrued and unpaid
         dividends) is payable solely out of the sale proceeds of other capital
         stock of the Corporation, which may include other series of Preferred
         Stock, and from no other source.  For purposes of the preceding
         sentence, "capital stock" means any equity securities (including
         Common Stock and Preferred Stock), shares, interest, participation or
         other ownership interests (however designated) and any rights (other
         than debt securities convertible into or exchangeable for equity
         securities) or options to purchase any of the foregoing.





                                       42
<PAGE>   44
                 (ii)     Unless full cumulative dividends on all shares of
         Series C Preferred Stock shall have been or contemporaneously are
         declared and paid or declared and a sum sufficient for the payment
         thereof set apart for payment for all past dividend periods and the
         then current dividend period, no shares of Series C Preferred Stock
         shall be redeemed unless all outstanding shares of Series C Preferred
         Stock are simultaneously redeemed, and the Corporation shall not
         purchase or otherwise acquire directly or indirectly any shares of
         Series C Preferred Stock (except by exchange for Stock of the
         Corporation ranking junior to the Series C Preferred Stock as to
         dividends and upon liquidation); provided, however, that the foregoing
         shall not prevent the purchase by the Corporation of shares of Excess
         Stock in order to ensure that the Corporation remains qualified as a
         REIT for federal income tax purposes or the purchase or acquisition of
         shares of Series C Preferred Stock pursuant to a purchase or exchange
         offer made on the same terms to holders of all outstanding shares of
         Series C Preferred Stock.

                 (c)      Immediately prior to any redemption of Series C
Preferred Stock, the Corporation shall pay, in cash, any accumulated and unpaid
dividends through the redemption date, unless a redemption date falls after a
Series C Dividend Record Date and prior to the corresponding Series C Dividend
Payment Date, in which case each holder of Series C Preferred Stock at the
close of business on such Series C Dividend Record Date shall be entitled to
the dividend payable on such shares on the corresponding Series C Dividend
Payment Date notwithstanding the redemption of such shares before such Series C
Dividend Payment Date.  Except as provided above, the Corporation will make no
payment or allowance for unpaid dividends, whether or not in arrears, on Series
C Preferred Stock which is redeemed.

                 (d)      Procedures for Redemption.

                 (i)      Notice of redemption will be (A) given by publication
         in a newspaper of general circulation in the City of New York, such
         publication to be made once a week for two successive weeks commencing
         not less than 30 nor more than 60 days prior to the redemption date,
         and (B) mailed by the Corporation, postage prepaid, not less than 30
         nor more than 60 days prior to the redemption date, addressed to the
         respective holders of record of the Series C Preferred Stock to be
         redeemed at their respective addresses as they appear on the stock
         transfer records of the Corporation.  No failure to give such notice
         or any defect thereto or in the mailing thereof shall affect the
         validity of the proceedings for the redemption of any shares of Series
         C Preferred Stock except as to the holder to whom notice was defective
         or not given.

                 (ii)     In addition to any information required by law or by
         the applicable rules of any exchange upon which Series C Preferred
         Stock may be listed or admitted to trading, such notice shall state:
         (A) the redemption date; (B) the redemption price; (C) the number of
         shares of Series C Preferred Stock to be redeemed; (D) the place or
         places where the Series C Preferred Stock is to be surrendered for
         payment of the redemption price; and (E) that dividends on the shares
         to be redeemed will cease to accrue on such redemption date.  If less
         than all of the Series C Preferred Stock held by any holder is to be
         redeemed, the notice mailed to such holder shall also specify the
         number of shares of





                                       43
<PAGE>   45
         Series C Preferred Stock held by such holder to be redeemed.

                 (iii)    If notice of redemption of any shares of Series C
         Preferred Stock has been given and if the funds necessary for such
         redemption have been set aside by the Corporation in trust for the
         benefit of the holders of any shares of Series C Preferred Stock so
         called for redemption, then from and after the redemption date
         dividends will cease to accrue on such shares of Series C Preferred
         Stock, such shares of Series C Preferred Stock shall no longer be
         deemed outstanding and all rights of the holders of such shares will
         terminate, except the right to receive the redemption price.  Holders
         of Series C Preferred Stock to be redeemed shall surrender such Series
         C Preferred Stock at the place designated in such notice and, upon
         surrender in accordance with said notice of the certificates for
         shares of Series C Preferred Stock so redeemed (properly endorsed or
         assigned for transfer, if the Corporation shall so require and the
         notice shall so state), such shares of Series C Preferred Stock shall
         be redeemed by the Corporation at the redemption price plus any
         accrued and unpaid dividends payable upon such redemption.  In case
         less than all the shares of Series C Preferred Stock represented by
         any such certificate are redeemed, a new certificate or certificates
         shall be issued representing the unredeemed shares of Series C
         Preferred Stock without cost to the holder thereof.

                 (iv)     The deposit of funds with a bank or trust corporation
         for the purpose of redeeming Series C Preferred Stock shall be
         irrevocable except that:

                          (A)     the Corporation shall be entitled to receive
                 from such bank or trust corporation the interest or other
                 earnings, if any, earned on any money so deposited in trust,
                 and the holders of any shares redeemed shall have no claim to
                 such interest or other earnings; and

                          (B)     any balance of monies so deposited by the
                 Corporation and unclaimed by the holders of the Series C
                 Preferred Stock entitled thereto at the expiration of two
                 years from the applicable redemption dates shall be repaid,
                 together with any interest or other earnings thereon, to the
                 Corporation, and after any such repayment, the holders of the
                 shares entitled to the funds so repaid to the Corporation
                 shall look only to the Corporation for payment without
                 interest or other earnings.

                 (e)      The shares of Series C Preferred Stock are subject to
the provisions of Section 7.4 of Article VII and Article IX of the Articles
relating to Excess Stock.  Excess Stock issued upon exchange of shares of
Series C Preferred Stock pursuant to such provisions may be redeemed, in whole
or in part, at any time when outstanding shares of Series C Preferred Stock are
being redeemed, for cash at a redemption price of $25.00 per share, plus all
accrued and unpaid dividends on the shares of Series C Preferred Stock, which
were exchanged for such Excess Stock, through the date of such exchange,
without interest.  If the Corporation elects to redeem Excess Stock pursuant to
the redemption right set forth in the preceding sentence, such Excess Stock
shall be redeemed in such proportion and in accordance with such procedures as
shares of Series C Preferred Stock are being redeemed.





                                       44
<PAGE>   46
                 (f)      Any shares of Series C Preferred Stock that shall at
any time have been redeemed shall, after such redemption, have the status of
authorized but unissued Preferred Stock, without designation as to series until
such shares are thereafter designated as part of a particular series by the
Board of Directors.

                 14.3.6       Voting Rights.

                 (a)      Holders of the Series C Preferred Stock will not have
any voting rights, except as set forth below or as otherwise from time to time
required by law.

                 (b)      Whenever dividends on any shares of Series C
Preferred Stock shall be in arrears for six or more quarterly periods (a
"Series C Preferred Dividend Default"), the Board of Directors shall take such
action as may be necessary to increase the number of Directors of the
Corporation by two and the holders of such shares of Series C Preferred Stock
(voting separately as a class with the holders of all other series of Preferred
Stock ranking on a parity with the Series C Preferred Stock as to dividends or
upon liquidation ("Series C Parity Preferred") upon which like voting rights
have been conferred and are exercisable) will be entitled to vote for the
election of a total of two Directors of the Corporation (the "Series C
Preferred Stock Directors") at a special meeting called by the holders of
record of at least 20% of the Series C Preferred Stock or the holders of any
other series of Series C Parity Preferred so in arrears (unless such request is
received less than 90 days before the date fixed for the next annual or special
meeting of stockholders) or at the next annual meeting of stockholders, and at
each subsequent annual meeting until all dividends accumulated on such shares
of Series C Preferred Stock for the past dividend periods and the dividend for
the then current dividend period shall have been fully paid or declared and a
sum sufficient for the payment thereof set aside for payment.

                 (c)      If and when all accumulated dividends and the
dividend for the then current dividend period on the Series C Preferred Stock
shall have been paid in full or set aside for payment in full, the holders of
shares of Series C Preferred Stock shall be divested of the voting rights set
forth in Section 14.3.6(b) hereof (subject to revesting in the event of each
and every Series C Preferred Dividend Default) and, if all accumulated
dividends and the dividend for the current dividend period have been paid in
full or set aside for payment in full on all other series of Series C Parity
Preferred upon which like voting rights have been conferred and are
exercisable, the term of office of each Series C Preferred Stock Director so
elected shall terminate and the Board of Directors shall take such action as
may be necessary to reduce the number of Directors by two.  Any Series C
Preferred Stock Director may be removed at any time with or without cause by
the vote of, and shall not be removed otherwise than by the vote of, the
holders of record of a majority of the outstanding shares of the Series C
Preferred Stock when they have the voting rights set forth in Section 14.3.6(b)
(voting separately as a class with all other series of Series C Parity
Preferred upon which like voting rights have been conferred and are
exercisable).  So long as a Series C Preferred Dividend Default shall continue,
any vacancy in the office of a Series C Preferred Stock Director may be filled
by written consent of the Series C Preferred Stock Director remaining in
office, or if none remains in office, by a vote of the holders of record of a
majority of the outstanding shares of Series C Preferred Stock when





                                       45
<PAGE>   47
they have the voting rights set forth in Section 14.3.6(b) (voting separately
as a class with all other series of Series C Parity Preferred upon which like
voting rights have been conferred and are exercisable).  The Series C Preferred
Stock Directors shall each be entitled to one vote per director on any matter.

                 (d)      So long as any shares of Series C Preferred Stock
remain outstanding, the Corporation shall not, without the affirmative vote of
the holders of at least two-thirds of the shares of the Series C Preferred
Stock outstanding at the time, given in person or by proxy, either in writing
or at a meeting (voting separately as a class), (i) authorize or create, or
increase the authorized or issued amount of, any class or series of Stock
ranking senior to the Series C Preferred Stock with respect to payment of
dividends or the distribution of assets upon liquidation, dissolution or
winding up or reclassify any authorized Stock of the Corporation into any such
shares, or create, authorize or issue any obligation or security convertible
into or evidencing the right to purchase any such shares or (ii) amend, alter
or repeal the provisions of the Articles, whether by merger, consolidation or
otherwise, so as to materially and adversely affect any right, preference,
privilege or voting power of the Series C Preferred Stock or the holders
thereof; provided, however, that with respect to the occurrence of any event
set forth in (ii) above, so long as the Series C Preferred Stock remains
outstanding with the terms thereof materially unchanged or, if the Corporation
is not the surviving entity in such transaction, is exchanged for a security of
the surviving entity with terms that are materially the same as the Series C
Preferred Stock, the occurrence of any such event shall not be deemed to
materially and adversely affect such rights, preferences, privileges or voting
powers of the holders of the Series C Preferred Stock; and, provided further,
that any increase in the amount of the authorized Preferred Stock or the
creation or issuance of any other series of Preferred Stock, or any increase in
the amount of authorized shares of such series, in each case ranking on a
parity with or junior to the Series C Preferred Stock with respect to payment
of dividends or the distribution of assets upon liquidation, dissolution or
winding up, shall not be deemed to materially and adversely affect such rights,
preferences, privileges or voting powers.

                 (e)      The foregoing voting provisions will not apply if, at
or prior to the time when the act with respect to which such vote would
otherwise be required shall be effected, all outstanding shares of Series C
Preferred Stock shall have been redeemed or called for redemption upon proper
notice and sufficient funds shall have been deposited in trust to effect such
redemption.

                 14.3.7       Conversion.  The Series C Preferred Stock is not
                 convertible into or exchangeable for any other property or
         securities of the Corporation, except that the shares of Series C
         Preferred Stock will automatically be converted by the Corporation
         into shares of Excess Stock and transferred to a Trust in accordance
         with Section 7.4 of Article VII and Article IX of the Articles in the
         same manner that Common Stock is converted into Excess Stock and
         transferred to a Trust pursuant thereto, in order to ensure that the
         Company remains qualified as a REIT for federal income tax purposes.

         14.4    8.00% Series D Cumulative Redeemable Preferred Stock.   The
Board of Directors has, by resolution, duly divided and classified 3,450,000
shares of the Preferred Stock





                                       46
<PAGE>   48
of the Corporation into a series designated 8.00% Series D Cumulative
Redeemable Preferred Stock and has provided for the issuance of such series.
Subject in all cases to the provisions of the Articles, including without
limitation, Section 7.4 of Article VII and Article IX with respect to
limitations on the transfer and ownership of Stock, the following is a
description of the preferences, conversion and other rights, voting powers,
restrictions, limitations as to dividends, qualifications and terms and
conditions of redemption of the 8.00% Series D Cumulative Redeemable Preferred
Stock of the Corporation:

                 14.4.1       Designation and Number.  A series of Preferred
                 Stock, designated the "8.00% Series D Cumulative Redeemable
         Preferred Stock" (the "Series D Preferred Stock"), has been
         established.  The number of authorized shares of the Series D
         Preferred Stock is 3,450,000.

                 14.4.2       Rank.  The Series D Preferred Stock shall, with
                 respect to dividend rights and rights upon liquidation,
         dissolution or winding up of the Corporation, rank (a) senior to the
         Corporation's Series A Preferred Stock, Series B Preferred Stock,
         Series E Preferred Stock, all classes or series of Common Stock of the
         Corporation, and to all equity securities issued by the Corporation
         ranking junior to such Series D Preferred Stock; (b) on a parity with
         the Corporation's Series C Preferred Stock, Series F Preferred Stock,
         Series G Preferred Stock and all other equity securities issued by the
         Corporation the terms of which specifically provide that such equity
         securities rank on a parity with the Series D Preferred Stock; and (c)
         junior to all equity securities issued by the Corporation the terms of
         which specifically provide that such equity securities rank senior to
         the Series D Preferred Stock.  The term "equity securities" shall not
         include convertible debt securities.

                 14.4.3       Dividends.

                 (a)      Holders of the then outstanding shares of Series D
Preferred Stock shall be entitled to receive, when and as authorized by the
Board of Directors, out of funds legally available for the payment of
dividends, cumulative preferential cash dividends at the rate of 8.00% of the
$25.00 liquidation preference per annum (equivalent to a fixed annual amount of
$2.00 per share).  Such dividends shall be cumulative from the first date on
which any Series D Preferred Stock is issued and shall be payable quarterly in
arrears on or before March 15, June 15, September 15 and December 15 of each
year or, if not a business day, the next succeeding business day (each, a
"Series D Dividend Payment Date").  The first dividend, which will be paid on
March 15, 1998, will be for less than a full quarter.  Such dividend and any
dividend payable on the Series D Preferred Stock for any partial dividend
period will be computed on the basis of a 360-day year consisting of twelve
30-day months.  Dividends will be payable to holders of record as they appear
in the stock records of the Corporation at the close of business on the
applicable record date, which shall be the first day of the calendar month in
which the applicable Series D Dividend Payment Date falls or on such other date
designated by the Board of Directors of the Corporation as the record date for
the payment of dividends on the Series D Preferred Stock that is not more than
30 nor less than 10 days prior to such Series D Dividend Payment Date (each, a
"Series D Dividend Record Date").





                                       47
<PAGE>   49
                 (b)      No dividends on shares of Series D Preferred Stock
shall be authorized by the Board of Directors of the Corporation or paid or set
apart for payment by the Corporation at such time as the terms and provisions
of any agreement of the Corporation, including any agreement relating to its
indebtedness, prohibits such authorization, payment or setting apart for
payment or provides that such authorization, payment or setting apart for
payment would constitute a breach thereof or a default thereunder, or if such
authorization or payment shall be restricted or prohibited by law.

                 (c)      Notwithstanding the foregoing, dividends on the
Series D Preferred Stock shall accrue whether or not the terms and provisions
set forth in Section 14.4.3(b) hereof at any time prohibit the current payment
of dividends, whether or not the Corporation has earnings, whether or not there
are funds legally available for the payment of such dividends and whether or
not such dividends are declared.  Accrued but unpaid dividends on the Series D
Preferred Stock will accumulate as of the Series D Dividend Payment Date on
which they first become payable.

                 (d)      Except as provided in Section 14.4.3(e) below, no
dividends will be declared or paid or set apart for payment on any Stock of the
Corporation or any other series of Preferred Stock ranking, as to dividends, on
a parity with or junior to the Series D Preferred Stock (other than a dividend
in shares of the Corporation's Common Stock or in any other class of Stock
ranking junior to the Series D Preferred Stock as to dividends and upon
liquidation) for any period unless full cumulative dividends have been or
contemporaneously are declared and paid or declared and a sum sufficient for
the payment thereof is set apart for such payment on the Series D Preferred
Stock for all past dividend periods and the then current dividend period.

                 (e)      When dividends are not paid in full (and a sum
sufficient for such full payment is not so set apart) upon the Series D
Preferred Stock and the shares of any other series of Preferred Stock ranking
on a parity as to dividends with the Series D Preferred Stock, all dividends
declared upon the Series D Preferred Stock and any other series of Preferred
Stock ranking on a parity as to dividends with the Series D Preferred Stock
shall be declared pro rata so that the amount of dividends declared per share
of Series D Preferred Stock and such other series of Preferred Stock shall in
all cases bear to each other the same ratio that accrued dividends per share on
the Series D Preferred Stock and such other series of Preferred Stock (which
shall not include any accrual in respect of unpaid dividends for prior dividend
periods if such Preferred Stock does not have a cumulative dividend) bear to
each other.  No interest, or sum of money in lieu of interest, shall be payable
in respect of any dividend payment or payments on Series D Preferred Stock
which may be in arrears.

                 (f)      Except as provided in the immediately preceding
paragraph, unless full cumulative dividends on the Series D Preferred Stock
have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for payment for all past
dividend periods and the then current dividend period, no dividends (other than
in shares of Common Stock or other shares of Stock ranking junior to the Series
D Preferred Stock as to





                                       48
<PAGE>   50
dividends and upon liquidation) shall be declared or paid or set aside for
payment, nor shall any other distribution be declared or made, upon the Common
Stock or any other Stock of the Corporation ranking junior to or on a parity
with the Series D Preferred Stock as to dividends or upon liquidation, nor
shall any shares of Common Stock, or any other shares of Stock of the
Corporation ranking junior to or on a parity with the Series D Preferred Stock
as to dividends or upon liquidation be redeemed, purchased or otherwise
acquired for any consideration (or any monies be paid to or made available for
a sinking fund for the redemption of any such shares) by the Corporation
(except by conversion into or exchange for other Stock of the Corporation
ranking junior to the Series D Preferred Stock as to dividends and upon
liquidation).

                 (g)      Any dividend payment made on shares of the Series D
Preferred Stock shall first be credited against the earliest accrued but unpaid
dividend due with respect to such shares which remains payable.  Holders of the
Series D Preferred Stock shall not be entitled to any dividend, whether payable
in cash, property or stock in excess of full cumulative dividends on the Series
D Preferred Stock as described above.

                 14.4.4       Liquidation Preference.

                 (a)      Upon any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Corporation, the holders of
shares of Series D Preferred Stock then outstanding are entitled to be paid out
of the assets of the Corporation legally available for distribution to its
stockholders a liquidation preference of $25.00 per share, plus an amount equal
to any accrued and unpaid dividends to the date of payment, before any
distribution of assets is made to holders of Common Stock or any other class or
series of Stock of the Corporation that ranks junior to the Series D Preferred
Stock as to liquidation rights.

                 (b)      In the event that, upon any such voluntary or
involuntary liquidation, dissolution or winding up, the available assets of the
Corporation are insufficient to pay the amount of the liquidating distributions
on all outstanding shares of Series D Preferred Stock and the corresponding
amounts payable on all shares of other classes or series of Stock of the
Corporation ranking on a parity with the Series D Preferred Stock in the
distribution of assets, then the holders of the Series D Preferred Stock and
all other such classes or series of Stock shall share ratably in any such
distribution of assets in proportion to the full liquidating distributions to
which they would otherwise be respectively entitled.

                 (c)      After payment of the full amount of the liquidating
distributions to which they are entitled, the holders of Series D Preferred
Stock will have no right or claim to any of the remaining assets of the
Corporation.

                 (d)      Written notice of any such liquidation, dissolution
or winding up of the Corporation, stating the payment date or dates when, and
the place or places where, the amounts distributable in such circumstances
shall be payable, shall be given by first class mail, postage pre-paid, not
less than 30 nor more than 60 days prior to the payment date stated therein, to
each record holder of the Series D Preferred Stock at the respective addresses
of such holders as the same shall appear on the stock transfer records of the
Corporation.

                 (e)      The consolidation or merger of the Corporation with
or into any other





                                       49
<PAGE>   51
corporation, trust or entity or of any other corporation with or into the
Corporation, or the sale, lease or conveyance of all or substantially all of
the property or business of the Corporation, shall not be deemed to constitute
a liquidation, dissolution or winding up of the Corporation.

                 14.4.5       Redemption.

                 (a)      Right of Optional Redemption.  The Series D Preferred
Stock is not redeemable prior to December 15, 2002.  However, in order to
ensure that the Corporation remains qualified as a REIT for federal income tax
purposes, shares of Series D Preferred Stock which have been converted into
Excess Stock shall be subject to repurchase by the Corporation in accordance
with Section 7.4.10 of Article VII.  On and after December 15, 2002, the
Corporation, at its option and upon not less than 30 nor more than 60 days'
written notice, may redeem shares of the Series D Preferred Stock, in whole or
in part, at any time or from time to time, for cash at a redemption price of
$25.00 per share, plus all accrued and unpaid dividends thereon to the date
fixed for redemption (except as provided in Section 14.4.5(c) below), without
interest. If less than all of the outstanding Series D Preferred Stock is to be
redeemed, the Series D Preferred Stock to be redeemed shall be selected pro
rata (as nearly as may be practicable without creating fractional shares) or by
any other equitable method determined by the Corporation.

                 (b)      Limitations on Redemption.

                 (i)      The redemption price of the Series D Preferred Stock
         (other than the portion thereof consisting of accrued and unpaid
         dividends) is payable solely out of the sale proceeds of other capital
         stock of the Corporation, which may include other series of Preferred
         Stock, and from no other source.  For purposes of the preceding
         sentence, "capital stock" means any equity securities (including
         Common Stock and Preferred Stock), shares, interest, participation or
         other ownership interests (however designated) and any rights (other
         than debt securities convertible into or exchangeable for equity
         securities) or options to purchase any of the foregoing.

                 (ii)     Unless full cumulative dividends on all shares of
         Series D Preferred Stock shall have been or contemporaneously are
         declared and paid or declared and a sum sufficient for the payment
         thereof set apart for payment for all past dividend periods and the
         then current dividend period, no shares of Series D Preferred Stock
         shall be redeemed unless all outstanding shares of Series D Preferred
         Stock are simultaneously redeemed, and the Corporation shall not
         purchase or otherwise acquire directly or indirectly any shares of
         Series D Preferred Stock, (except by exchange for Stock of the
         Corporation ranking junior to the Series D Preferred Stock as to
         dividends and upon liquidation); provided, however, that the foregoing
         shall not prevent the purchase by the Corporation of shares of Excess
         Stock in order to ensure that the Corporation remains qualified as a
         REIT for federal income tax purposes or the purchase or acquisition of
         shares of Series D Preferred Stock pursuant to a purchase or exchange
         offer made on the same terms to holders of all outstanding shares of
         Series D Preferred Stock.

                 (c)      Immediately prior to any redemption of Series D
Preferred Stock, the





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<PAGE>   52
         Corporation shall pay, in cash, any accumulated and unpaid dividends
         through the redemption date, unless a redemption date falls after a
         Series D Dividend Record Date and prior to the corresponding Series D
         Dividend Payment Date, in which case each holder of Series D Preferred
         Stock at the close of business on such Series D Dividend Record Date
         shall be entitled to the dividend payable on such shares on the
         corresponding Series D Dividend Payment Date notwithstanding the
         redemption of such shares before such Series D Dividend Payment Date.
         Except as provided above, the Corporation will make no payment or
         allowance for unpaid dividends, whether or not in arrears, on Series D
         Preferred Stock which is redeemed.

                 (d)      Procedures for Redemption.

                 (i)      Notice of redemption will be (A) given by publication
         in a newspaper of general circulation in the City of New York, such
         publication to be made once a week for two successive weeks commencing
         not less than 30 nor more than 60 days prior to the redemption date,
         and (B) mailed by the Corporation, postage prepaid, not less than 30
         nor more than 60 days prior to the redemption date, addressed to the
         respective holders of record of the Series D Preferred Stock to be
         redeemed at their respective addresses as they appear on the stock
         transfer records of the Corporation.  No failure to give such notice
         or any defect thereto or in the mailing thereof shall affect the
         validity of the proceedings for the redemption of any shares of Series
         D Preferred Stock except as to the holder to whom notice was defective
         or not given.

                 (ii)     In addition to any information required by law or by
         the applicable rules of any exchange upon which Series D Preferred
         Stock may be listed or admitted to trading, such notice shall state:
         (A) the redemption date; (B) the redemption price; (C) the number of
         shares of Series D Preferred Stock to be redeemed; (D) the place or
         places where the Series D Preferred Stock is to be surrendered for
         payment of the redemption price; and (E) that dividends on the shares
         to be redeemed will cease to accrue on such redemption date.  If less
         than all of the Series D Preferred Stock held by any holder is to be
         redeemed, the notice mailed to such holder shall also specify the
         number of shares of Series D Preferred Stock held by such holder to be
         redeemed.

                 (iii)    If notice of redemption of any shares of Series D
         Preferred Stock has been given and if the funds necessary for such
         redemption have been set aside by the Corporation in trust for the
         benefit of the holders of any shares of Series D Preferred Stock so
         called for redemption, then from and after the redemption date
         dividends will cease to accrue on such shares of Series D Preferred
         Stock, such shares of Series D Preferred Stock shall no longer be
         deemed outstanding and all rights of the holders of such shares will
         terminate, except the right to receive the redemption price.  Holders
         of Series D Preferred Stock to be redeemed shall surrender such Series
         D Preferred Stock at the place designated in such notice and, upon
         surrender in accordance with said notice of the certificates for
         shares of Series D Preferred Stock so redeemed (properly endorsed or
         assigned for transfer, if the Corporation shall so require and the
         notice shall so state), such shares of Series D Preferred Stock shall
         be redeemed by the Corporation at the redemption price plus any
         accrued and unpaid dividends payable upon such redemption.





                                       51
<PAGE>   53
         In case less than all the shares of Series D Preferred Stock
         represented by any such certificate are redeemed, a new certificate or
         certificates shall be issued representing the unredeemed shares of
         Series D Preferred Stock without cost to the holder thereof.

                 (iv)     The deposit of funds with a bank or trust corporation
         for the purpose of redeeming Series D Preferred Stock shall be
         irrevocable except that:

                          (A)     the Corporation shall be entitled to receive
                 from such bank or trust corporation the interest or other
                 earnings, if any, earned on any money so deposited in trust,
                 and the holders of any shares redeemed shall have no claim to
                 such interest or other earnings; and

                          (B)     any balance of monies so deposited by the
                 Corporation and unclaimed by the holders of the Series D
                 Preferred Stock entitled thereto at the expiration of two
                 years from the applicable redemption dates shall be
                 repaid,together with any interest or other earnings thereon,
                 to the Corporation, and after any such repayment, the holders
                 of the shares entitled to the funds so repaid to the
                 Corporation shall look only to the Corporation for payment
                 without interest or other earnings.

                 (e)      The shares of Series D Preferred Stock are subject to
the provisions of Section 7.4 of Article VII and Article IX of the Articles
relating to Excess Stock.  Excess Stock issued upon exchange of shares of
Series D Preferred Stock pursuant to such provisions may be redeemed, in whole
or in part, at any time when outstanding shares of Series D Preferred Stock are
being redeemed, for cash at a redemption price of $25.00 per share, plus all
accrued and unpaid dividends on the shares of Series D Preferred, which were
exchanged for such Excess Stock, through the date of such exchange, without
interest.  If the Corporation elects to redeem Excess Stock pursuant to the
redemption right set forth in the preceding sentence, such Excess Stock shall
be redeemed in such proportion and in accordance with such procedures as shares
of Series D Preferred Stock are being redeemed.

                 (f)      Any shares of Series D Preferred Stock that shall at
any time have been redeemed shall, after such redemption, have the status of
authorized but unissued Preferred Stock, without designation as to series until
such shares are thereafter designated as part of a particular series by the
Board of Directors.

                 14.4.6       Voting Rights.

                 (a)      Holders of the Series D Preferred Stock will not have
any voting rights, except as set forth below or as otherwise from time to time
required by law.

                 (b)      Whenever dividends on any shares of Series D
Preferred Stock shall be in arrears for six or more quarterly periods (a
"Series D Preferred Dividend Default"), the Board of Directors shall take such
action as may be necessary to increase the number of Directors of the
Corporation by two and the holders of such shares of Series D Preferred Stock
(voting separately





                                       52
<PAGE>   54
as a class with the holders of all other series of Preferred Stock ranking on a
parity with the Series D Preferred Stock as to dividends or upon liquidation
("Series D Parity Preferred") upon which like voting rights have been conferred
and are exercisable) will be entitled to vote for the election of a total of
two Directors of the Corporation (the "Series D Preferred Stock Directors") at
a special meeting called by the holders of record of at least 20% of the Series
D Preferred Stock or the holders of any other series of Parity Preferred so in
arrears (unless such request is received less than 90 days before the date
fixed for the next annual or special meeting of stockholders) or at the next
annual meeting of stockholders, and at each subsequent annual meeting until all
dividends accumulated on such shares of Series D Preferred Stock for the past
dividend periods and the dividend for the then current dividend period shall
have been fully paid or declared and a sum sufficient for the payment thereof
set aside for payment.

                 (c)      If and when all accumulated dividends and the
dividend for the then current dividend period on the Series D Preferred Stock
shall have been paid in full or set aside for payment in full, the holders of
shares of Series D Preferred Stock shall be divested of the voting rights set
forth in Section 14.4.6(b) hereof (subject to revesting in the event of each
and every Series D Preferred Dividend Default) and, if all accumulated
dividends and the dividend for the current dividend period have been paid in
full or set aside for payment in full on all other series of Series D Parity
Preferred upon which like voting rights have been conferred and are
exercisable, the term of office of each Series D Preferred Stock Director so
elected shall terminate and the Board of Directors shall take such action as
may be necessary to reduce the number of Directors by two.  Any Series D
Preferred Stock Director may be removed at any time with or without cause by
the vote of, and shall not be removed otherwise than by the vote of, the
holders of record of a majority of the outstanding shares of the Series D
Preferred Stock when they have the voting rights set forth in Section 14.4.6(b)
(voting separately as a class with all other series of Series D Parity
Preferred upon which like voting rights have been conferred and are
exercisable).  So long as a Series D Preferred Dividend Default shall continue,
any vacancy in the office of a Series D Preferred Stock Director may be filled
by written consent of the Series D Preferred Stock Director remaining in
office, or if none remains in office, by a vote of the holders of record of a
majority of the outstanding shares of Series D Preferred Stock when they have
the voting rights set forth in Section 14.4.6(b) (voting separately as a class
with all other series of Series D Parity Preferred upon which like voting
rights have been conferred and are exercisable).  The Series D Preferred Stock
Directors shall each be entitled to one vote per director on any matter.

                 (d)      So long as any shares of Series D Preferred Stock
remain outstanding, the Corporation shall not, without the affirmative vote of
the holders of at least two-thirds of the shares of the Series D Preferred
Stock outstanding at the time, given in person or by proxy, either in writing
or at a meeting (voting separately as a class), (i) authorize or create, or
increase the authorized or issued amount of, any class or series of Stock
ranking senior to the Series D Preferred Stock with respect to payment of
dividends or the distribution of assets upon liquidation, dissolution or
winding up or reclassify any authorized Stock of the Corporation into any such
shares, or create, authorize or issue any obligation or security convertible
into or evidencing the right to purchase any such shares or (ii) amend, alter
or repeal the provisions of the Articles, whether by merger, consolidation or
otherwise, so as to materially and adversely





                                       53
<PAGE>   55
affect any right, preference, privilege or voting power of the Series D
Preferred Stock or the holders thereof; provided, however, that with respect to
the occurrence of any event set forth in (ii) above, so long as the Series D
Preferred Stock remains outstanding with the terms thereof materially unchanged
or, if the Corporation is not the surviving entity in such transaction, is
exchanged for a security of the surviving entity with terms that are materially
the same as the Series D Preferred Stock, the occurrence of any such event
shall not be deemed to materially and adversely affect such rights,
preferences, privileges or voting powers of the holders of the Series D
Preferred Stock; and, provided further, that any increase in the amount of the
authorized Preferred Stock or the creation or issuance of any other series of
Preferred Stock, or any increase in the amount of authorized shares of such
series, in each case ranking on a parity with or junior to the Series D
Preferred Stock with respect to payment of dividends or the distribution of
assets upon liquidation, dissolution or winding up, shall not be deemed to
materially and adversely affect such rights, preferences, privileges or voting
powers.

                 (e)      The foregoing voting provisions will not apply if, at
or prior to the time when the act with respect to which such vote would
otherwise be required shall be effected, all outstanding shares of Series D
Preferred Stock shall have been redeemed or called for redemption upon proper
notice and sufficient funds shall have been deposited in trust to effect such
redemption.

                 14.4.7       Conversion.  The Series D Preferred Stock is not
                 convertible into or exchangeable for any other property or
         securities of the Corporation, except that the shares of Series D
         Preferred Stock will automatically be converted by the Corporation
         into shares of Excess Stock and transferred to a Trust in accordance
         with Section 7.4 of Article VII and Article IX of the Articles in the
         same manner that Common Stock is converted into Excess Stock and
         transferred to a Trust pursuant thereto, in order to ensure that the
         Company remains qualified as a REIT for federal income tax purposes.

         14.5    Series E Junior Participating Cumulative Preferred Stock.  The
Board of Directors has duly divided and classified 1,000,000 shares of the
Preferred Stock of the Corporation into a series designated Series E Junior
Participating Cumulative Preferred Stock and has provided for the issuance of
such series.  Subject in all cases to the provisions of Section 7.4 of Article
VII and Article IX of the Articles with respect to Excess Stock, the following
is a description of the preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends, qualifications and terms and
conditions of redemption of the Series E Junior Cumulative Preferred Stock of
the Corporation:

                 14.5.1       Designation and Amount.  The designation of the
                 Preferred Stock described in Section 14.5 hereof shall be
         "Series E Junior Participating Cumulative Preferred Stock," par value
         $.01 per share (hereinafter called "Series E Preferred Stock"), and
         the number of shares constituting such series shall be 1,000,000. Such
         number of shares may be increased or decreased by resolution of the
         Board of Directors and by the filing of articles of amendment pursuant
         to the provisions of the MGCL stating that such increase or reduction
         has been so authorized; provided, however, that no decrease shall
         reduce the number of shares of Series E Preferred





                                       54
<PAGE>   56
         Stock to a number less than that of the shares then outstanding plus
         the number of shares of Series E Preferred Stock issuable upon
         exercise of outstanding rights, options or warrants or upon conversion
         of outstanding securities issued by the Corporation.

                 14.5.2       Dividends and Distributions.

                 (a)      (i)   Subject to the rights of the holders of any
                 shares of any series of Preferred Stock (or any similar Stock)
         ranking prior and superior to the Series E Preferred Stock with
         respect to dividends, the holders of shares of Series E Preferred
         Stock, in preference to the holders of shares of Common Stock and of
         any other junior Stock, shall be entitled to receive, when, as and if
         authorized by the Board of Directors out of funds legally available
         for the purpose, quarterly dividends payable in cash on the first day
         of March, June, September and December in each year (each such date
         being referred to herein as a "Series E Quarterly Dividend Payment
         Date"), commencing on the first Series E Quarterly Dividend Payment
         Date after the first issuance of a share or fraction of a share of
         Series E Preferred Stock, in an amount per share (rounded to the
         nearest cent) equal to the greater of (x) $1.00 or (y) subject to the
         provisions for adjustment hereinafter set forth, 1,000 times the
         aggregate per share amount of all cash dividends, and 1,000 times the
         aggregate per share amount (payable in kind) of all non-cash dividends
         or other distributions other than a dividend payable in shares of
         Common Stock or a subdivision of the outstanding shares of Common
         Stock (by reclassification or otherwise), declared on the shares of
         Common Stock since the immediately preceding Series E Quarterly
         Dividend Payment Date, or, with respect to the first Series E
         Quarterly Dividend Payment Date, since the first issuance of any share
         or fraction of a share of Series E Preferred Stock.  The multiple of
         cash and non-cash dividends declared on the Common Stock to which
         holders of the Series E Preferred Stock are entitled, which shall be
         1,000 initially but which shall be adjusted from time to time as
         hereinafter provided, is hereinafter referred to as the "Series E
         Dividend Multiple."  In the event the Corporation shall at any time
         after March 9, 1998 (the "Series E Rights Declaration Date") (i)
         declare or pay any dividend on the shares of Common Stock payable in
         shares of Common Stock, or (ii) effect a subdivision or combination or
         consolidation of the outstanding shares of Common Stock (by
         reclassification or otherwise than by payment of a dividend in shares
         of Common Stock) into a greater or lesser number of shares of Common
         Stock, then in each such case the Series E Dividend Multiple
         thereafter applicable to the determination of the amount of dividends
         which holders of shares of Series E Preferred Stock shall be entitled
         to receive shall be the Series E Dividend Multiple applicable
         immediately prior to such event multiplied by a fraction, the
         numerator of which is the number of shares of Common Stock outstanding
         immediately after such event and the denominator of which is the
         number of shares of Common Stock that were outstanding immediately
         prior to such event.

                 (ii)     Notwithstanding anything else contained in this
                 paragraph (a), the Corporation shall, out of funds legally
         available for that purpose, declare a dividend or distribution
         on the Series E Preferred Stock as provided in this paragraph





                                       55
<PAGE>   57
         (a) immediately after it declares a dividend or distribution on the
         shares of Common Stock (other than a dividend payable in shares of
         Common Stock); provided that, in the event no dividend or distribution
         shall have been declared on the shares of Common Stock during the
         period between any Series E Quarterly Dividend Payment Date and the
         next subsequent Series E Quarterly Dividend Payment Date, a dividend
         of $1.00 per share on the Series E Preferred Stock shall nevertheless
         be payable on such subsequent Series E Quarterly Dividend Payment
         Date.

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

                 14.5.3       Voting Rights.  In addition to any other voting
                 rights required by law, the holders of shares of Series E
         Preferred Stock shall have the following voting rights:

                 (a)      Subject to the provision for adjustment hereinafter
set forth, each share of Series E Preferred Stock shall entitle the holder
thereof to 1,000 votes on all matters submitted to a vote of the stockholders
of the Corporation.  The number of votes which a holder of a share of Series E
Preferred Stock is entitled to cast, which shall initially be 1,000 but which
may be adjusted from time to time as hereinafter provided, is hereinafter
referred to as the "Vote Multiple."  In the event the Corporation shall at any
time after the Series E Rights Declaration Date (i) declare or pay any dividend
on shares of Common Stock payable in shares of Common Stock, or (ii) effect a
subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) into a greater or lesser number of shares of Common Stock,
then in each such case the Vote Multiple thereafter applicable to the
determination of the number of votes per share to which holders of shares of
Series E Preferred Stock shall be entitled shall be the Vote Multiple
immediately prior to such event multiplied by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after





                                       56
<PAGE>   58
such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

                 (b)      Except as otherwise provided herein or by law, the
holders of shares of Series E Preferred Stock and the holders of shares of
Common Stock and the holders of shares of any other Stock of this Corporation
having general voting rights, shall vote together as one class on all matters
submitted to a vote of stockholders of the Corporation.

                 (c)      (i) Whenever, at any time or times, dividends payable
         on any shares of Series E Preferred Stock shall be in arrears in an
         amount equal to at least two full quarter dividends (whether or not
         declared and whether or not consecutive), the holders of record of the
         outstanding shares of Series E Preferred Stock shall have the
         exclusive right, voting separately as a single class, to elect two
         Directors of the Corporation at a special meeting of stockholders of
         the Corporation or at the Corporation's next annual meeting of
         stockholders, and at each subsequent annual meeting of shareholders,
         as provided below.  At elections for such Directors, each Series E
         Preferred Share shall entitle the holder thereof to 1,000 votes in
         such elections.

                          (ii)    Upon the vesting of such right of the holders
         of shares of Series E Preferred Stock, the maximum authorized number
         of members of the Board of Directors shall automatically be increased
         by two and the two vacancies so created shall be filled by vote of the
         holders of the outstanding shares of Series E Preferred Stock as
         hereinafter set forth.  A special meeting of the stockholders of the
         Corporation then entitled to vote shall be called by the Chairman of
         the Board of Directors or the President or the Secretary of the
         Corporation, if requested in writing by the holders of record of not
         less than 10% of the shares of Series E Preferred Stock then
         outstanding.  At such special meeting, or, if no such special meeting
         shall have been called, then at the next annual meeting of
         stockholders of the Corporation, the holders of the shares of Series E
         Preferred Stock shall elect, voting as above provided, two Directors
         of the Corporation to fill the aforesaid vacancies created by the
         automatic increase in the number of members of the Board of Directors.
         At any and all such meetings for such election, the holders of a
         majority of the outstanding shares of Series E Preferred Stock shall
         be necessary to constitute a quorum for such election, whether present
         in person or proxy, and such two Directors shall be elected by the
         vote of at least a majority of the shares of Series E Preferred Stock
         held by such stockholders present or represented at the meeting.  Any
         director elected by holders of shares of Series E Preferred Stock
         pursuant to this Section may be removed at any annual or special
         meeting, by vote of a majority of the shareholders voting as a class
         who elected such Director, with or without cause.  In case any vacancy
         shall occur among the Directors elected by the holders of shares of
         Series E Preferred Stock pursuant to this Section, such vacancy may be
         filled by the remaining director so elected, or his successor then in
         office, and the director so elected to fill such vacancy shall serve
         until the next meeting of shareholders for the election of Directors.
         After the holders of shares of Series E Preferred Stock shall have
         exercised their right to elect Directors in any default period and
         during the continuance of such period, the number of Directors shall
         not be further increased or decreased except by vote of the holders of
         shares of Series E Preferred





                                       57
<PAGE>   59
         Stock as herein provided or pursuant to the rights of any equity
         securities ranking senior to or pari passu with the Series E Preferred
         Stock.

                          (iii)   The right of the holders of shares of Series
         E Preferred Stock, voting separately as a class, to elect two members
         of the Board of Directors of the Corporation as aforesaid shall
         continue until, and only until, such time as all arrears in dividends
         (whether or not declared) on the Series E Preferred Stock shall have
         been paid or declared and set apart for payment, at which time such
         right shall terminate, except as herein or by law expressly provided
         subject to revesting in the event of each and every subsequent default
         of the character above-mentioned.  Upon any termination of the right
         of the holders of the Series E Preferred Stock as a class to vote for
         Directors as herein provided, the term of office of all Directors then
         in office elected by the holders of shares of Series E Preferred Stock
         pursuant to this Section shall terminate immediately.  Whenever the
         term of office of the Directors elected by the holders of shares of
         Series E Preferred Stock pursuant to this Section shall terminate and
         the special voting powers vested in the holders of the Series E
         Preferred Stock pursuant to this Section shall have expired, the
         maximum number of members of this Board of Directors of the
         Corporation shall be such number as may be provided for in the By-laws
         of the Corporation, irrespective of any increase made pursuant to the
         provisions of this Section.

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

                 14.5.4       Certain Restrictions.

                 (a)      Whenever dividends or distributions payable on the
Series E Preferred Stock as provided in Section 14.5.2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on shares of Series E Preferred Stock outstanding
shall have been paid in full, the Corporation shall not:

                          (i) declare or pay dividends on, make any other
         distributions on, or redeem or purchase or otherwise acquire for
         consideration any shares of Stock ranking junior (either as to
         dividends or upon liquidation, dissolution or winding up) to the
         Series E Preferred Stock;

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





                                       58
<PAGE>   60
                          (iii)   except as permitted in subsection
         14.5.4(a)(iv) below, redeem, purchase or otherwise acquire for
         consideration shares of any Stock ranking on a parity (either as to
         dividends or upon liquidation, dissolution or winding up) with the
         Series E Preferred Stock, provided that the Corporation may at any
         time redeem, purchase or otherwise acquire shares of any such parity
         Stock in exchange for shares of any Stock of the Corporation ranking
         junior (either as to dividends or upon dissolution, liquidation or
         winding up) to the Series E Preferred Stock; or

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

                 (b)      The Corporation shall not permit any subsidiary of
the Corporation to purchase or otherwise acquire for consideration any shares
of Stock of the Corporation unless the Corporation could, under subsection (a)
of this Section 14.5.4, purchase or otherwise acquire such shares at such time
and in such manner.

                 14.5.5       Reacquired Shares.  Any shares of Series E
         Preferred Stock purchased or otherwise acquired by the Corporation in
         any manner whatsoever shall be retired and canceled promptly after the
         acquisition thereof.  All such shares shall upon their cancellation
         become authorized but unissued shares of Preferred Stock and may be
         reissued as part of a new series of Preferred Stock to be created by
         resolution or resolutions of the Board of Directors, subject to the
         conditions and restrictions on issuance set forth herein.

                 14.5.6       Liquidation, Dissolution or Winding Up.  Upon any
                 liquidation (voluntary or otherwise), dissolution or winding
         up of the Corporation, no distribution shall be made (x) to the
         holders of shares of Stock ranking junior (either as to dividends or
         upon liquidation, dissolution or winding up) to the Series E Preferred
         Stock unless, prior thereto, the holders of Series E Preferred Stock
         shall have received an amount equal to accrued and unpaid dividends
         and distributions thereon, whether or not declared, to the date of
         such payment, plus an amount equal to the greater of (1) $1,000.00 per
         share or (2) an aggregate amount per share, subject to the provision
         for adjustment hereinafter set forth, equal to 1,000 times the
         aggregate amount to be distributed per share to holders of shares of
         Common Stock, or (y) to the holders of Stock ranking on a parity
         (either as to dividends or upon liquidation, dissolution or winding
         up) with the Series E Preferred Stock, except distributions made
         ratably on the Series E Preferred Stock and all other such parity
         Stock in proportion to the total amounts to which the holders of all
         such shares are entitled upon such liquidation,





                                       59
<PAGE>   61
         dissolution or winding up.  In the event the Corporation shall at any
         time after the Series E Rights Declaration Date (i) declare or pay any
         dividend on shares of Common Stock payable in shares of Common Stock,
         or (ii) effect a subdivision or combination or consolidation of the
         outstanding shares of Common Stock (by reclassification or otherwise
         than by payment of a dividend in shares of Common Stock) into a
         greater or lesser number of shares of Common Stock, then in each such
         case the aggregate amount per share to which holders of shares of
         Series E Preferred Stock were entitled immediately prior to such event
         under clause (x) of the preceding sentence shall be adjusted by
         multiplying such amount by a fraction, the numerator of which is the
         number of shares of Common Stock outstanding immediately after such
         event and the denominator of which is the number of shares of Common
         Stock that were outstanding immediately prior to such event.

                 Neither the consolidation of nor merging of the Corporation
                 with or into any other corporation or corporations, nor the
         sale or other transfer of all or substantially all of the assets of
         the Corporation, shall be deemed to be a liquidation, dissolution or
         winding up of the Corporation within the meaning of this Section
         14.5.6.

                 14.5.7       Consolidation, Merger, etc.  In case the
                 Corporation shall enter into any consolidation, merger,
         combination or other transaction in which the shares of Common Stock
         are exchanged for or changed into other stock or securities, cash
         and/or any other property, then in any such case the shares of Series
         E Preferred Stock shall at the same time be similarly exchanged or
         changed in an amount per share (subject to the provision for
         adjustment hereinafter set forth) equal to 1,000 times the aggregate
         amount of stock, securities, cash and/or any other property (payable
         in kind), as the case may be, into which or for which each share of
         Common Stock is changed or exchanged, plus accrued and unpaid
         dividends, if any, payable with respect to the Series E Preferred
         Stock.  In the event the Corporation shall at any time after the
         Series E Rights Declaration Date (i) declare or pay any dividend on
         shares of Common Stock payable in shares of Common Stock, or (ii)
         effect a subdivision or combination or consolidation of the
         outstanding shares of Common Stock (by reclassification or otherwise
         than by payment of a dividend in shares of Common Stock) into a
         greater or lesser number of shares of Common Stock, then in each such
         case the amount set forth in the preceding sentence with respect to
         the exchange or change of shares of Series E Preferred Stock shall be
         adjusted by multiplying such amount by a fraction, the numerator of
         which is the number of shares of Common Stock outstanding immediately
         after such event and the denominator of which is the number of shares
         of Common Stock that were outstanding immediately prior to such event.

                 14.5.8       Redemption.  The shares of Series E Preferred
                 Stock shall not be redeemable; provided, however, that the
         foregoing shall not limit the ability of the Corporation to purchase
         or otherwise deal in such shares to the extent otherwise permitted
         hereby and by law.

                 14.5.9       Ranking.  Unless otherwise expressly provided in
                 the Articles or





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<PAGE>   62
                 Articles Supplementary relating to any other series of
         Preferred Stock of the Corporation, the Series E Preferred Stock shall
         rank junior to every other series of the Corporation's Preferred Stock
         previously or hereafter authorized, as to the payment of dividends and
         the distribution of assets on liquidation, dissolution or winding up
         and shall rank senior to the Common Stock.

                 14.5.10  Amendment.  The Articles may not be amended in any
                 manner which would materially alter or change the powers,
         preferences or special rights of the Series E Preferred Stock so as to
         affect them adversely without the affirmative vote of the holders of a
         majority or more of the outstanding shares of Series E Preferred
         Stock, voting separately as a class.

                 14.5.11  Fractional Shares.  Shares of Series E Preferred
                 Stock may be issued in whole shares or in any fraction of a
         share that is one ten-thousandth (1/1,000th) of a share or any
         integral multiple of such fraction, which shall entitle the holder, in
         proportion to such holder's fractional shares, to exercise voting
         rights, receive dividends, participate in distributions and to have
         the benefit of all other rights of holders of shares of Series E
         Preferred Stock.  In lieu of fractional shares, the Corporation may
         elect to make a cash payment as provided in the Rights Agreement for
         fractions of a share other than one ten-thousandth (1/1,000th) of a
         share or any integral multiple thereof.


         14.6    9.00% Series F Cumulative Redeemable Preferred Stock.  The
Board of Directors has, by resolution, duly divided and classified 4,455,000
shares of the Preferred Stock of the Corporation into a series designated 9.00%
Series F Cumulative Redeemable Preferred Stock and has provided for the
issuance of such series.  Subject in all cases to the provisions of the
Articles, including, without limitation, Section 7.4 of Article VII and Article
IX with respect to limitations on the transfer and ownership of Stock, the
following is a description of the preferences, conversion and other rights,
voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption of the 9.00% Series F Cumulative Redeemable
Preferred Stock of the Corporation:

                 14.6.1     Designation and Number.  A series of Preferred
         Stock, designated the "9.00% Series F Cumulative Redeemable Preferred
         Stock" (the "Series F Preferred Stock"), has been established.  The
         number of authorized shares of the Series F Preferred Stock shall be
         4,455,000.

                 14.6.2      Rank.  The Series F Preferred Stock shall, with
         respect to dividend rights and rights upon liquidation, dissolution or
         winding up of the Corporation, rank (a) senior to the Corporation's
         Series A Preferred Stock, Series B Preferred Stock, Series E Preferred
         Stock, and all classes or series of Common Stock of the Corporation,
         and to all equity securities issued by the Corporation ranking junior
         to such Series F Preferred Stock; (b) on a parity with the
         Corporation's Series C Preferred Stock, Series D Preferred Stock,
         Series G Preferred Stock and all equity securities





                                       61
<PAGE>   63
         issued by the Corporation the terms of which specifically provide that
         such equity securities rank on a parity with the Series F Preferred
         Stock; and (c) junior to all equity securities issued by the
         Corporation the terms of which specifically provide that such equity
         securities rank senior to the Series F Preferred Stock.  The term
         "equity securities" shall not include convertible debt securities.

                 14.6.3      Dividends.

                 (a)      Holders of the then outstanding shares of Series F
Preferred Stock shall be entitled to receive, when and as authorized by the
Board of Directors, out of funds legally available for the payment of
dividends, cumulative preferential cash dividends at the rate of 9.00% of the
$25.00 liquidation preference per annum (equivalent to a fixed annual amount of
$2.25 per share).  Such dividends shall be cumulative from the first date on
which any Series F Preferred Stock is issued and shall be payable quarterly in
arrears on or before the fifteenth day of February, May, August and November
or, if not a business day, the next succeeding business day (each, a "Series F
Dividend Payment Date").  Any dividend payable on the Series F Preferred Stock
for any partial dividend period will be computed on the basis of a 360-day year
consisting of twelve 30-day months.  Dividends will be payable to holders of
record as they appear in the stock records of the Corporation at the close of
business on the applicable record date, which shall be the first day of the
calendar month in which the applicable Series F Dividend Payment Date falls or
on such other date designated by the Board of Directors of the Corporation as
the record date for the payment of dividends on the Series F Preferred Stock
that is not more than 30 nor less than 10 days prior to such Series F Dividend
Payment Date (each, a "Series F Dividend Record Date").

                 (b)      No dividends on shares of Series F Preferred Stock
shall be authorized by the Board of Directors of the Corporation or paid or set
apart for payment by the Corporation at such time as the terms and provisions
of any agreement of the Corporation, including any agreement relating to its
indebtedness, prohibits such authorization, payment or setting apart for
payment or provides that such authorization, payment or setting apart for
payment would constitute a breach thereof or a default thereunder, or if such
authorization or payment shall be restricted or prohibited by law.

                 (c)      Notwithstanding the foregoing, dividends on the
Series F Preferred Stock shall accrue whether or not the terms and provisions
set forth in Section 14.6.3(b) hereof at any time prohibit the current payment
of dividends, whether or not the Corporation has earnings, whether or not there
are funds legally available for the payment of such dividends and whether or
not such dividends are declared.  Accrued but unpaid dividends on the Series F
Preferred Stock will accumulate as of the Series F Dividend Payment Date on
which they first become payable.

                 (d)      Except as provided in Section 14.6.3(e) below, no
dividends will be declared or paid or set apart for payment on any Stock of the
Corporation or any other series of Preferred Stock ranking, as to dividends, on
a parity with or junior to the Series F Preferred Stock (other than a dividend
in shares of the Corporation's Common Stock or in any other class of Stock
ranking junior to the Series F Preferred Stock as to dividends and upon





                                       62
<PAGE>   64
liquidation) for any period unless full cumulative dividends have been or
contemporaneously are declared and paid or declared and a sum sufficient for
the payment thereof is set apart for such payment on the Series F Preferred
Stock for all past dividend periods and the then current dividend period.

                 (e)      When dividends are not paid in full (and a sum
sufficient for such full payment is not so set apart) upon the Series F
Preferred Stock and the shares of any other series of Preferred Stock ranking
on a parity as to dividends with the Series F Preferred Stock, all dividends
declared upon the Series F Preferred Stock and any other series of Preferred
Stock ranking on a parity as to dividends with the Series F Preferred Stock
shall be declared pro rata so that the amount of dividends declared per share
of Series F Preferred Stock and such other series of Preferred Stock shall in
all cases bear to each other the same ratio that accrued dividends per share on
the Series F Preferred Stock and such other series of Preferred Stock (which
shall not include any accrual in respect of unpaid dividends for prior dividend
periods if such Preferred Stock does not have a cumulative dividend) bear to
each other.  No interest, or sum of money in lieu of interest, shall be payable
in respect of any dividend payment or payments on Series F Preferred Stock
which may be in arrears.

                 (f)      Except as provided in the immediately preceding
paragraph, unless full cumulative dividends on the Series F Preferred Stock
have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for payment for all past
dividend periods and the then current dividend period, no dividends (other than
in shares of Common Stock or other shares of Stock ranking junior to the Series
F Preferred Stock as to dividends and upon liquidation) shall be declared or
paid or set aside for payment nor shall any other distribution be declared or
made upon the Common Stock, or any other Stock of the Corporation ranking
junior to or on a parity with the Series F Preferred Stock as to dividends or
upon liquidation, nor shall any shares of Common Stock, or any other shares of
Stock of the Corporation ranking junior to or on a parity with the Series F
Preferred Stock as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any monies be paid to or made
available for a sinking fund for the redemption of any such shares) by the
Corporation (except by conversion into or exchange for other Stock of the
Corporation ranking junior to the Series F Preferred Stock as to dividends and
upon liquidation).

                 (g)      Any dividend payment made on shares of the Series F
Preferred Stock shall first be credited against the earliest accrued but unpaid
dividend due with respect to such shares which remains payable.  Holders of the
Series F Preferred Stock shall not be entitled to any dividend, whether payable
in cash, property or Stock in excess of full cumulative dividends on the Series
F Preferred Stock as described above.

                 14.6.4      Liquidation Preference.

                 (a)      Upon any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Corporation, the holders of
shares of Series F Preferred Stock then outstanding are entitled to be paid out
of the assets of the Corporation legally available for





                                       63
<PAGE>   65
distribution to its stockholders a liquidation preference of $25.00 per share,
plus an amount equal to any accrued and unpaid dividends to the date of
payment, before any distribution of assets is made to holders of Common Stock
or any other class or series of Stock of the Corporation that ranks junior to
the Series F Preferred Stock as to liquidation rights.

                 (b)      In the event that, upon any such voluntary or
involuntary liquidation, dissolution or winding up, the available assets of the
Corporation are insufficient to pay the amount of the liquidating distributions
on all outstanding shares of Series F Preferred Stock and the corresponding
amounts payable on all shares of other classes or series of Stock of the
Corporation ranking on a parity with the Series F Preferred Stock in the
distribution of assets, then the holders of the Series F Preferred Stock and
all other such classes or series of Stock shall share ratably in any such
distribution of assets in proportion to the full liquidating distributions to
which they would otherwise be respectively entitled.

                 (c)      After payment of the full amount of the liquidating
distributions to which they are entitled, the holders of Series F Preferred
Stock will have no right or claim to any of the remaining assets of the
Corporation.

                 (d)      Written notice of any such liquidation, dissolution
or winding up of the Corporation, stating the payment date or dates when, and
the place or places where, the amounts distributable in such circumstances
shall be payable, shall be given by first class mail, postage pre-paid, not
less than 30 nor more than 60 days prior to the payment date stated therein, to
each record holder of the Series F Preferred Stock at the respective addresses
of such holders as the same shall appear on the stock transfer records of the
Corporation.

                 (e)      The consolidation or merger of the Corporation with
or into any other corporation, trust or entity or of any other corporation with
or into the Corporation, or the sale, lease or conveyance of all or
substantially all of the property or business of the Corporation, shall not be
deemed to constitute a liquidation, dissolution or winding up of the
Corporation.

                 14.6.5      Redemption.

                 (a)      Right of Optional Redemption.  The Series F Preferred
Stock is not redeemable prior to February 15, 2001.  However, in order to
ensure that the Corporation remains qualified as a REIT for federal income tax
purposes, shares of Series F Preferred Stock which have been converted into
Excess Stock shall be subject to repurchase by the Corporation in accordance
with Section 7.4.10 of Article VII.  On and after February 15, 2001, the
Corporation, at its option and upon not less than 30 nor more than 60 days'
written notice, may redeem shares of the Series F Preferred Stock, in whole or
in part, at any time or from time to time, for cash at a redemption price of
$25.00 per share, plus all accrued and unpaid dividends thereon to the date
fixed for redemption (except as provided in Section 14.6.5(c) below), without
interest.  If less than all of the outstanding Series F Preferred Stock is to
be redeemed, the Series F Preferred Stock to be redeemed shall be selected pro
rata (as nearly as may be practicable without creating fractional shares) or by
any other equitable method





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<PAGE>   66
determined by the Corporation.

                 (b)      Limitations on Redemption.

                          (i)     The redemption price of the Series F
         Preferred Stock (other than the portion thereof consisting of accrued
         and unpaid dividends) is payable solely out of the sale proceeds of
         other capital stock of the Corporation, which may include other series
         of Preferred Stock, and from no other source.  For purposes of the
         preceding sentence, "capital stock" means any equity securities
         (including Common Stock and Preferred Stock), shares, interest,
         participation or other ownership interests (however designated) and
         any rights (other than debt securities convertible into or
         exchangeable for equity securities) or options to purchase any of the
         foregoing.

                          (ii)    Unless full cumulative dividends on all
         shares of Series F Preferred Stock shall have been or
         contemporaneously are declared and paid or declared and a sum
         sufficient for the payment thereof set apart for payment for all past
         dividend periods and the then current dividend period, no shares of
         Series F Preferred Stock shall be redeemed unless all outstanding
         shares of Series F Preferred Stock are simultaneously redeemed, and
         the Corporation shall not purchase or otherwise acquire directly or
         indirectly any shares of Series F Preferred Stock (except by exchange
         for Stock of the Corporation ranking junior to the Series F Preferred
         Stock as to dividends and upon liquidation); provided, however, that
         the foregoing shall not prevent the purchase by the Corporation of
         shares of Excess Stock in order to ensure that the Corporation remains
         qualified as a REIT for federal income tax purposes or the purchase or
         acquisition of shares of Series F Preferred Stock pursuant to a
         purchase or exchange offer made on the same terms to holders of all
         outstanding shares of Series F Preferred Stock.

                 (c)      Rights to Dividends on Shares Called for Redemption.
Immediately prior to any redemption of Series F Preferred Stock, the
Corporation shall pay, in cash, any accumulated and unpaid dividends through
the redemption date, unless a redemption date falls after a Series F Dividend
Record Date and prior to the corresponding Series F Dividend Payment Date, in
which case each holder of Series F Preferred Stock at the close of business on
such Series F Dividend Record Date shall be entitled to the dividend payable on
such shares on the corresponding Series F Dividend Payment Date notwithstanding
the redemption of such shares before such Series F Dividend Payment Date.
Except as provided above, the Corporation will make no payment or allowance for
unpaid dividends, whether or not in arrears, on Series F Preferred Stock which
is redeemed.

                 (d)      Procedures for Redemption.

                          (i)     Notice of redemption will be (A) given by
         publication in a newspaper of general circulation in the City of New
         York, such publication to be made once a week for two successive weeks
         commencing not less than 30 nor more than 60 days prior to the
         redemption date, and (B) mailed by the Corporation, postage prepaid,
         not





                                       65
<PAGE>   67
         less than 30 nor more than 60 days prior to the redemption date,
         addressed to the respective holders of record of the Series F
         Preferred Stock to be redeemed at their respective addresses as they
         appear on the stock transfer records of the Corporation.  No failure
         to give such notice or any defect thereto or in the mailing thereof
         shall affect the validity of the proceedings for the redemption of any
         shares of Series F Preferred Stock except as to the holder to whom
         notice was defective or not given.

                          (ii)    In addition to any information required by
         law or by the applicable rules of any exchange upon which Series F
         Preferred may be listed or admitted to trading, such notice shall
         state:  (A) the redemption date; (B) the redemption price; (C) the
         number of shares of Series F Preferred Stock to be redeemed; (D) the
         place or places where the Series F Preferred Stock is to be
         surrendered for payment of the redemption price; and (E) that
         dividends on the shares to be redeemed will cease to accrue on such
         redemption date.  If less than all of the Series F Preferred Stock
         held by any holder is to be redeemed, the notice mailed to such holder
         shall also specify the number of shares of Series F Preferred Stock
         held by such holder to be redeemed.

                          (iii)   If notice of redemption of any shares of
         Series F Preferred Stock has been given and if the funds necessary for
         such redemption have been set aside by the Corporation in trust for
         the benefit of the holders of any shares of Series F Preferred Stock
         so called for redemption, then from and after the redemption date
         dividends will cease to accrue on such shares of Series F Preferred
         Stock, such shares of Series F Preferred Stock shall no longer be
         deemed outstanding and all rights of the holders of such shares will
         terminate, except the right to receive the redemption price.  Holders
         of Series F Preferred Stock to be redeemed shall surrender such Series
         F Preferred Stock at the place designated in such notice and, upon
         surrender in accordance with said notice of the certificates for
         shares of Series F Preferred Stock so redeemed (properly endorsed or
         assigned for transfer, if the Corporation shall so require and the
         notice shall so state), such shares of Series F Preferred Stock shall
         be redeemed by the Corporation at the redemption price plus any
         accrued and unpaid dividends payable upon such redemption.  In case
         less than all the shares of Series F Preferred Stock represented by
         any such certificate are redeemed, a new certificate or certificates
         shall be issued representing the unredeemed shares of Series F
         Preferred Stock without cost to the holder thereof.

                          (iv)    The deposit of funds with a bank or trust
         corporation for the purpose of redeeming Series F Preferred Stock
         shall be irrevocable except that:

                                  (A)      the Corporation shall be entitled to
                 receive from such bank or trust corporation the interest or
                 other earnings, if any, earned on any money so deposited in
                 trust, and the holders of any shares redeemed shall have no
                 claim to such interest or other earnings; and

                                  (B)      any balance of monies so deposited by
                 the Corporation





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<PAGE>   68
                 and unclaimed by the holders of the Series F Preferred Stock
                 entitled thereto at the expiration of two years from the
                 applicable redemption dates shall be repaid, together with any
                 interest or other earnings thereon, to the Corporation, and
                 after any such repayment, the holders of the shares entitled
                 to the funds so repaid to the Corporation shall look only to
                 the Corporation for payment without interest or other
                 earnings.

                 (e)      The shares of Series F Preferred Stock are subject to
the provisions of Section 7.4 of Article VII and Article IX of the Articles
relating to Excess Stock.  Excess Stock issued upon exchange of shares of
Series F Preferred Stock pursuant to such provisions may be redeemed, in whole
or in part, at any time when outstanding shares of Series F Preferred Stock are
being redeemed, for cash at a redemption price of $25.00 per share, plus all
accrued and unpaid dividends on the shares of Series F Preferred Stock, which
are exchanged for such Excess Stock, through the date of such exchange, without
interest.  If the Corporation elects to redeem Excess Stock pursuant to the
redemption right set forth in the preceding sentence, such Excess Stock shall
be redeemed in such proportion and in accordance with such procedures as shares
of Series F Preferred Stock are being redeemed.

                 (f)      Any shares of Series F Preferred Stock that shall at
any time have been redeemed shall, after such redemption, have the status of
authorized but unissued Preferred Stock, without designation as to series until
such shares are thereafter designated as part of a particular series by the
Board of Directors.

                 14.6.6      Voting Rights.

                 (a)      Holders of the Series F Preferred Stock will not have
any voting rights, except as set forth below or as otherwise from time to time
required by law.

                 (b)      Whenever dividends on any shares of Series F
Preferred Stock shall be in arrears for six or more quarterly periods (a
"Series F Preferred Dividend Default"), the Board of Directors shall take such
action as may be necessary to increase the number of Directors of the
Corporation by two and the holders of such shares of Series F Preferred Stock
(voting separately as a class with the holders of all other series of Preferred
Stock ranking on a parity with the Series F Preferred Stock as to dividends or
upon liquidation ("Series F Parity Preferred") upon which like voting rights
have been conferred and are exercisable) will be entitled to vote for the
election of a total of two Directors of the Corporation (the "Series F
Preferred Stock Directors") at a special meeting called by the holders of
record of at least 10% of the Series F Parity Preferred or the holders of any
other series of Series F Parity Preferred so in arrears (unless such request is
received less than 90 days before the date fixed for the next annual or special
meeting of the stockholders) or at the next annual meeting of stockholders, and
at each subsequent annual meeting until all dividends accumulated on such
shares of Series F Preferred Stock for the past dividend periods and the
dividends for the then current dividend period shall have been fully paid or
declared and a sum sufficient for the payment thereof set aside for payment.





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                 (c)      If and when all accumulated dividends and the
dividend for the then current dividend period on the Series F Preferred Stock
shall have been paid in full or set aside for payment in full, the holders of
shares of Series F Preferred Stock shall be divested of the voting rights set
forth in Section 14.6.6(b) hereof (subject to revesting in the event of each
and every Series F Preferred Dividend Default) and the term of office of each
Series F Preferred Stock Director so elected shall terminate and the Board of
Directors shall take such action as may be necessary to reduce the number of
Directors by two.  Any Series F Preferred Stock Director may be removed at any
time with or without cause by the vote of, and shall not be removed otherwise
than by the vote of, the holders of record of a majority of the outstanding
shares of the Series F Preferred Stock when they have the voting rights set
forth in Section 14.6.6(b) (voting separately as a class with all other series
of Series F Parity Preferred upon which like voting rights have been conferred
and are exercisable).  So long as a Series F Preferred Dividend Default shall
continue, any vacancy in the office of a Series F Preferred Stock Director may
be filled by written consent of the Series F Preferred Stock Director remaining
in office, or if none remains in office, by a vote of the holders of record of
a majority of the outstanding shares of Series F Preferred Stock when they have
voting rights as set forth in Section 14.6.6(b) (voting separately as a class
with all other series of Series F Parity Preferred upon which like voting
rights have been conferred and are exercisable).  The Series F Preferred Stock
Directors shall each be entitled to one vote per director on any matter.

                 (d)      So long as any shares of Series F Preferred Stock
remain outstanding, the Corporation shall not, without the affirmative vote of
the holders of at least two thirds of the shares of the Series F Preferred
Stock outstanding at the time given in person or by proxy, either in writing or
at a meeting (voting separately as a class), (i) authorize or create, or
increase the authorized or issued amount of, any class or series of Stock
ranking senior to the Series F Preferred Stock with respect to payment of
dividends or the distribution of assets upon liquidation, dissolution or
winding up or reclassify any authorized Stock of the Corporation into any such
shares, or create, authorize or issue any obligation or security convertible
into or evidencing the right to purchase any such shares, or (ii) amend, alter
or repeal the provisions of the Articles, whether by merger, consolidation or
otherwise, so as to materially and adversely affect any right, preference,
privilege or voting power of the Series F Preferred Stock or the holders
thereof; provided, however, that any increase in the amount of the authorized
Preferred Stock or the creation or issuance of any other series of Preferred
Stock, or any increase in the amount of authorized shares of such series, in
each case ranking on a parity with or junior to the Series F Preferred Stock
with respect to payment of dividends or the distribution of assets upon
liquidation, dissolution or winding up, shall not be deemed to materially and
adversely affect such rights, preferences, privileges or voting powers.

                 (e)      The foregoing voting provisions will not apply if, at
or prior to the time when the act with respect to which such vote would
otherwise be required shall be effected, all outstanding shares of Series F
Preferred Stock shall have been redeemed or called for redemption upon proper
notice and sufficient funds shall have been deposited in trust to effect such
redemption.

                 14.6.7      Conversion.  The Series F Preferred Stock is not
         convertible into or





                                       68
<PAGE>   70
         exchangeable for any other property or securities of the
         Corporation, except that the shares of Series F Preferred Stock will
         automatically be converted by the Corporation into shares of Excess
         Stock and transferred to a Trust in accordance with Section 7.4 of
         Article VII and Article IX of the Articles in the same manner that
         Common Stock is converted into Excess Stock and transferred to a Trust
         pursuant thereto, in order to ensure that the Corporation remains
         qualified as a REIT for federal income tax purposes.

         14.7    8.96% Series G Cumulative Redeemable Preferred Stock.  The
Board of Directors has, by resolution, duly divided and classified 4,300,000
shares of the Preferred Stock of the Corporation into a series designated 8.96%
Series G Cumulative Redeemable Preferred Stock and has provided for the
issuance of such series.  Subject in all cases to the provisions of the
Articles, including, without limitation, Section 7.4 of Article VII and Article
IX with respect to limitations on the transfer and ownership of Stock, the
following is a description of the preferences, conversion and other rights,
voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption of the 8.96% Series G Cumulative Redeemable
Preferred Stock of the Corporation:

                 14.7.1     Designation and Number.  A series of Preferred
         Stock, designated the "8.96% Series G Cumulative Redeemable Preferred
         Stock" (the "Series G Preferred Stock"), has been established.  The
         number of authorized shares of the Series G Preferred Stock shall be
         4,300,000.

                 14.7.2      Rank.  The Series G Preferred Stock shall, with
         respect to dividend rights and rights upon liquidation, dissolution or
         winding up of the Corporation, rank (a) senior to the Corporation's
         Series A Preferred Stock, Series B Preferred Stock, Series E Preferred
         Stock, and all classes or series of Common Stock of the Corporation,
         and to all equity securities issued by the Corporation ranking junior
         to such Series G Preferred Stock; (b) on a parity with the
         Corporation's Series C Preferred Stock, Series D Preferred Stock,
         Series F Preferred Stock and all equity securities issued by the
         Corporation the terms of which specifically provide that such equity
         securities rank on a parity with the Series G Preferred Stock; and (c)
         junior to all equity securities issued by the Corporation the terms of
         which specifically provide that such equity securities rank senior to
         the Series G Preferred Stock.  The term "equity securities" shall not
         include convertible debt securities.

                 14.7.3      Dividends.

                 (a)      Holders of the then outstanding shares of Series G
Preferred Stock shall be entitled to receive, when and as authorized by the
Board of Directors, out of funds legally available for the payment of
dividends, cumulative preferential cash dividends at the rate of 8.96% of the
$25.00 liquidation preference per annum (equivalent to a fixed annual amount of
$2.24 per share).  Such dividends shall be cumulative from the first date on
which any Series G Preferred Stock is issued and shall be payable quarterly in
arrears on or before the fifteenth day of February, May, August and November
or, if not a business day, the next





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succeeding business day (each, a "Series G Dividend Payment Date").  Any
dividend payable on the Series G Preferred Stock for any partial dividend
period will be computed on the basis of a 360-day year consisting of twelve
30-day months.  Dividends will be payable to holders of record as they appear
in the stock records of the Corporation at the close of business on the
applicable record date, which shall be the first day of the calendar month in
which the applicable Series G Dividend Payment Date falls or on such other date
designated by the Board of Directors of the Corporation as the record date for
the payment of dividends on the Series G Preferred Stock that is not more than
30 nor less than 10 days prior to such Series G Dividend Payment Date (each, a
"Series G Dividend Record Date").

                 (b)      No dividends on shares of Series G Preferred Stock
shall be authorized by the Board of Directors of the Corporation or paid or set
apart for payment by the Corporation at such time as the terms and provisions
of any agreement of the Corporation, including any agreement relating to its
indebtedness, prohibits such authorization, payment or setting apart for
payment or provides that such authorization, payment or setting apart for
payment would constitute a breach thereof or a default thereunder, or if such
authorization or payment shall be restricted or prohibited by law.

                 (c)      Notwithstanding the foregoing, dividends on the
Series G Preferred Stock shall accrue whether or not the terms and provisions
set forth in Section 14.7.3(b) hereof at any time prohibit the current payment
of dividends, whether or not the Corporation has earnings, whether or not there
are funds legally available for the payment of such dividends and whether or
not such dividends are declared.  Accrued but unpaid dividends on the Series G
Preferred Stock will accumulate as of the Series G Dividend Payment Date on
which they first become payable.

                 (d)      Except as provided in Section 14.7.3(e) below, no
dividends will be declared or paid or set apart for payment on any Stock of the
Corporation or any other series of Preferred Stock ranking, as to dividends, on
a parity with or junior to the Series G Preferred Stock (other than a dividend
in shares of the Corporation's Common Stock or in any other class of Stock
ranking junior to the Series G Preferred Stock as to dividends and upon
liquidation) for any period unless full cumulative dividends have been or
contemporaneously are declared and paid or declared and a sum sufficient for
the payment thereof is set apart for such payment on the Series G Preferred
Stock for all past dividend periods and the then current dividend period.

                 (e)      When dividends are not paid in full (and a sum
sufficient for such full payment is not so set apart) upon the Series G
Preferred Stock and the shares of any other series of Preferred Stock ranking
on a parity as to dividends with the Series G Preferred Stock, all dividends
declared upon the Series G Preferred Stock and any other series of Preferred
Stock ranking on a parity as to dividends with the Series G Preferred Stock
shall be declared pro rata so that the amount of dividends declared per share
of Series G Preferred Stock and such other series of Preferred Stock shall in
all cases bear to each other the same ratio that accrued dividends per share on
the Series G Preferred Stock and such other series of Preferred Stock (which
shall not include any accrual in respect of unpaid dividends for prior dividend





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periods if such Preferred Stock does not have a cumulative dividend) bear to
each other.  No interest, or sum of money in lieu of interest, shall be payable
in respect of any dividend payment or payments on Series G Preferred Stock
which may be in arrears.

                 (f)      Except as provided in the immediately preceding
paragraph, unless full cumulative dividends on the Series G Preferred Stock
have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for payment for all past
dividend periods and the then current dividend period, no dividends (other than
in shares of Common Stock or other shares of Stock ranking junior to the Series
G Preferred Stock as to dividends and upon liquidation) shall be declared or
paid or set aside for payment nor shall any other distribution be declared or
made upon the Common Stock, or any other Stock of the Corporation ranking
junior to or on a parity with the Series G Preferred Stock as to dividends or
upon liquidation, nor shall any shares of Common Stock, or any other shares of
Stock of the Corporation ranking junior to or on a parity with the Series G
Preferred Stock as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any monies be paid to or made
available for a sinking fund for the redemption of any such shares) by the
Corporation (except by conversion into or exchange for other Stock of the
Corporation ranking junior to the Series G Preferred Stock as to dividends and
upon liquidation).
                 (g)      Any dividend payment made on shares of the Series G
Preferred Stock shall first be credited against the earliest accrued but unpaid
dividend due with respect to such shares which remains payable.  Holders of the
Series G Preferred Stock shall not be entitled to any dividend, whether payable
in cash, property or Stock, in excess of full cumulative dividends on the
Series G Preferred Stock as described above.

                 14.7.4      Liquidation Preference.

                 (a)      Upon any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Corporation, the holders of
shares of Series G Preferred Stock then outstanding are entitled to be paid out
of the assets of the Corporation legally available for distribution to its
stockholders a liquidation preference of $25.00 per share, plus an amount equal
to any accrued and unpaid dividends to the date of payment, before any
distribution of assets is made to holders of Common Stock or any other class or
series of Stock of the Corporation that ranks junior to the Series G Preferred
Stock as to liquidation rights.

                 (b)      In the event that, upon any such voluntary or
involuntary liquidation, dissolution or winding up, the available assets of the
Corporation are insufficient to pay the amount of the liquidating distributions
on all outstanding shares of Series G Preferred Stock and the corresponding
amounts payable on all shares of other classes or series of Stock of the
Corporation ranking on a parity with the Series G Preferred Stock in the
distribution of assets, then the holders of the Series G Preferred Stock and
all other such classes or series of Stock shall share ratably in any such
distribution of assets in proportion to the full liquidating distributions to
which they would otherwise be respectively entitled.

 (c)      After payment of the full amount of the liquidating distributions to
          which





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they are entitled, the holders of Series G Preferred Stock will have no right
or claim to any of the remaining assets of the Corporation.

                 (d)      Written notice of any such liquidation, dissolution
or winding up of the Corporation, stating the payment date or dates when, and
the place or places where, the amounts distributable in such circumstances
shall be payable, shall be given by first class mail, postage pre-paid, not
less than 30 nor more than 60 days prior to the payment date stated therein, to
each record holder of the Series G Preferred Stock at the respective addresses
of such holders as the same shall appear on the stock transfer records of the
Corporation.

                 (e)      The consolidation or merger of the Corporation with
or into any other corporation, trust or entity or of any other corporation with
or into the Corporation, or the sale, lease or conveyance of all or
substantially all of the property or business of the Corporation, shall not be
deemed to constitute a liquidation, dissolution or winding up of the
Corporation.

                 14.7.5      Redemption.

                 (a)      Right of Optional Redemption.  The Series G Preferred
Stock is not redeemable prior to October 15, 2001.  However, in order to ensure
that the Corporation remains qualified as a REIT for federal income tax
purposes, shares of Series G Preferred Stock which have been converted into
Excess Stock shall be subject to repurchase by the Corporation in accordance
with Section 7.4.10 of Article VII.  On and after October 15, 2001, the
Corporation, at its option and upon not less than 30 nor more than 60 days'
written notice, may redeem shares of the Series G Preferred Stock, in whole or
in part, at any time or from time to time, for cash at a redemption price of
$25.00 per share, plus all accrued and unpaid dividends thereon to the date
fixed for redemption (except as provided in Section 14.7.5(c) below), without
interest.  If less than all of the outstanding Series G Preferred Stock is to
be redeemed, the Series G Preferred Stock to be redeemed shall be selected pro
rata (as nearly as may be practicable without creating fractional shares) or by
any other equitable method determined by the Corporation.

                 (b)      Limitations on Redemption.

                          (i)The redemption price of the Series G Preferred
         Stock (other than the portion thereof consisting of accrued and unpaid
         dividends) is payable solely out of the sale proceeds of other capital
         stock of the Corporation, which may include other series of Preferred
         Stock, and from no other source.  For purposes of the preceding
         sentence, "capital stock" means any equity securities (including
         Common Stock and Preferred Stock), shares, interest, participation or
         other ownership interests (however designated) and any rights (other
         than debt securities convertible into or exchangeable for equity
         securities) or options to purchase any of the foregoing.

                          (ii)    Unless full cumulative dividends on all
         shares of Series G Preferred Stock shall have been or
         contemporaneously are declared and paid or





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         declared and a sum sufficient for the payment thereof set apart for
         payment for all past dividend periods and the then current dividend
         period, no shares of Series G Preferred Stock shall be redeemed unless
         all outstanding shares of Series G Preferred Stock are simultaneously
         redeemed, and the Corporation shall not purchase or otherwise acquire
         directly or indirectly any shares of Series G Preferred Stock (except
         by exchange for Stock of the Corporation ranking junior to the Series
         G Preferred Stock as to dividends and upon liquidation); provided,
         however, that the foregoing shall not prevent the purchase by the
         Corporation of shares of Excess Stock in order to ensure that the
         Corporation remains qualified as a REIT for federal income tax
         purposes or the purchase or acquisition of shares of Series G
         Preferred Stock pursuant to a purchase or exchange offer made on the
         same terms to holders of all outstanding shares of Series G Preferred
         Stock.

                 (c)      Rights to Dividends on Shares Called for Redemption.
Immediately prior to any redemption of Series G Preferred Stock, the
Corporation shall pay, in cash, any accumulated and unpaid dividends through
the redemption date, unless a redemption date falls after a Series G Dividend
Record Date and prior to the corresponding Series G Dividend Payment Date, in
which case each holder of Series G Preferred Stock at the close of business on
such Series G Dividend Record Date shall be entitled to the dividend payable on
such shares on the corresponding Series G Dividend Payment Date notwithstanding
the redemption of such shares before such Series G Dividend Payment Date.
Except as provided above, the Corporation will make no payment or allowance for
unpaid dividends, whether or not in arrears, on Series G Preferred Stock which
is redeemed.

                 (d)      Procedures for Redemption.

                          (i)     Notice of redemption will be (A) given by
         publication in a newspaper of general circulation in the City of New
         York, such publication to be made once a week for two successive weeks
         commencing not less than 30 nor more than 60 days prior to the
         redemption date, and (B) mailed by the Corporation, postage prepaid,
         not less than 30 nor more than 60 days prior to the redemption date,
         addressed to the respective holders of record of the Series G
         Preferred Stock to be redeemed at their respective addresses as they
         appear on the stock transfer records of the Corporation.  No failure
         to give such notice or any defect thereto or in the mailing thereof
         shall affect the validity of the proceedings for the redemption of any
         shares of Series G Preferred Stock except as to the holder to whom
         notice was defective or not given.

                          (ii)    In addition to any information required by
         law or by the applicable rules of any exchange upon which Series G
         Preferred may be listed or admitted to trading, such notice shall
         state:  (A) the redemption date; (B) the redemption price; (C) the
         number of shares of Series G Preferred Stock to be redeemed; (D) the
         place or places where the Series G Preferred Stock is to be
         surrendered for payment of the redemption price; and (E) that
         dividends on the shares to be redeemed will cease to accrue on such
         redemption date.  If less than all of the Series G Preferred Stock
         held by any holder is to be redeemed, the notice mailed to





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         such holder shall also specify the number of shares of Series G
         Preferred Stock held by such holder to be redeemed.

                          (iii)   If notice of redemption of any shares of
         Series G Preferred Stock has been given and if the funds necessary for
         such redemption have been set aside by the Corporation in trust for
         the benefit of the holders of any shares of Series G Preferred Stock
         so called for redemption, then from and after the redemption date
         dividends will cease to accrue on such shares of Series G Preferred
         Stock, such shares of Series G Preferred Stock shall no longer be
         deemed outstanding and all rights of the holders of such shares will
         terminate, except the right to receive the redemption price.  Holders
         of Series G Preferred Stock to be redeemed shall surrender such Series
         G Preferred Stock at the place designated in such notice and, upon
         surrender in accordance with said notice of the certificates for
         shares of Series G Preferred Stock so redeemed (properly endorsed or
         assigned for transfer, if the Corporation shall so require and the
         notice shall so state), such shares of Series G Preferred Stock shall
         be redeemed by the Corporation at the redemption price plus any
         accrued and unpaid dividends payable upon such redemption.  In case
         less than all the shares of Series G Preferred Stock represented by
         any such certificate are redeemed, a new certificate or certificates
         shall be issued representing the unredeemed shares of Series G
         Preferred Stock without cost to the holder thereof.

                          (iv)    The deposit of funds with a bank or trust
         corporation for the purpose of redeeming Series G Preferred Stock
         shall be irrevocable except that:

                                  (A)      the Corporation shall be entitled to
                 receive from such bank or trust corporation the interest or
                 other earnings, if any, earned on any money so deposited in
                 trust, and the holders of any shares redeemed shall have no
                 claim to such interest or other earnings; and

                                  (B)      any balance of monies so deposited
                 by the Corporation and unclaimed by the holders of the Series
                 G Preferred Stock entitled thereto at the expiration of two
                 years from the applicable redemption dates shall be repaid,
                 together with any interest or other earnings thereon, to the
                 Corporation, and after any such repayment, the holders of the
                 shares entitled to the funds so repaid to the Corporation
                 shall look only to the Corporation for payment without
                 interest or other earnings.

                 (e)      The shares of Series G Preferred Stock are subject to
the provisions of Section 7.4 of Article VII and Article IX of the Articles
relating to Excess Stock.  Excess Stock issued upon exchange of shares of
Series G Preferred Stock pursuant to such provisions may be redeemed, in whole
or in part, at any time when outstanding shares of Series G Preferred Stock are
being redeemed, for cash at a redemption price of $25.00 per share, plus all
accrued and unpaid dividends on the shares of Series G Preferred Stock, which
are exchanged for such Excess Stock, through the date of such exchange, without
interest.  If the Corporation elects to redeem Excess Stock pursuant to the
redemption right set forth in the





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preceding sentence, such Excess Stock shall be redeemed in such proportion and
in accordance with such procedures as shares of Series G Preferred Stock are
being redeemed.

                 (f)      Any shares of Series G Preferred Stock that shall at
any time have been redeemed shall, after such redemption, have the status of
authorized but unissued Preferred Stock, without designation as to series until
such shares are thereafter designated as part of a particular series by the
Board of Directors.

                 14.7.6      Voting Rights.

                 (a)      Holders of the Series G Preferred Stock will not have
any voting rights, except as set forth below or as otherwise from time to time
required by law.

                 (b)      Whenever dividends on any shares of Series G
Preferred Stock shall be in arrears for six or more quarterly periods (a
"Series G Preferred Dividend Default"), the Board of Directors shall take such
action as may be necessary to increase the number of Directors of the
Corporation by two and the holders of such shares of Series G Preferred Stock
(voting separately as a class with the holders of all other series of Preferred
Stock ranking on a parity with the Series G Preferred Stock as to dividends or
upon liquidation ("Series G Parity Preferred") upon which like voting rights
have been conferred and are exercisable) will be entitled to vote for the
election of a total of two Directors of the Corporation (the "Series G
Preferred Stock Directors") at a special meeting called by the holders of
record of at least 10% of the Series G Parity Preferred or the holders of any
other series of Series G Parity Preferred so in arrears (unless such request is
received less than 90 days before the date fixed for the next annual or special
meeting of the stockholders) or at the next annual meeting of stockholders, and
at each subsequent annual meeting until all dividends accumulated on such
shares of Series G Preferred Stock for the past dividend periods and the
dividends for the then current dividend period shall have been fully paid or
declared and a sum sufficient for the payment thereof set aside for payment.

                 (c)      If and when all accumulated dividends and the
dividend for the then current dividend period on the Series G Preferred Stock
shall have been paid in full or set aside for payment in full, the holders of
shares of Series G Preferred Stock shall be divested of the voting rights set
forth in Section 14.7.6(b) hereof (subject to revesting in the event of each
and every Series G Preferred Dividend Default) and the term of office of each
Series G Preferred Stock Director so elected shall terminate and the Board of
Directors shall take such action as may be necessary to reduce the number of
Directors by two.  Any Series G Preferred Stock Director may be removed at any
time with or without cause by the vote of, and shall not be removed otherwise
than by the vote of, the holders of record of a majority of the outstanding
shares of the Series G Preferred Stock when they have the voting rights set
forth in Section 14.7.6(b) (voting separately as a class with all other series
of Series G Parity Preferred upon which like voting rights have been conferred
and are exercisable).  So long as a Series G Preferred Dividend Default shall
continue, any vacancy in the office of a Series G Preferred Stock Director may
be filled by written consent of the Series G Preferred Stock Director remaining
in office, or if none remains in office, by a vote of the holders of record of
a





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majority of the outstanding shares of Series G Preferred Stock when they have
voting rights as set forth in Section 14.7.6(b) (voting separately as a class
with all other series of Series G Parity Preferred upon which like voting
rights have been conferred and are exercisable).  The Series G Preferred Stock
Directors shall each be entitled to one vote per director on any matter.

                 (d)      So long as any shares of Series G Preferred Stock
remain outstanding, the Corporation shall not, without the affirmative vote of
the holders of at least two thirds of the shares of the Series G Preferred
Stock outstanding at the time given in person or by proxy, either in writing or
at a meeting (voting separately as a class), (i) authorize or create, or
increase the authorized or issued amount of, any class or series of Stock
ranking senior to the Series G Preferred Stock with respect to payment of
dividends or the distribution of assets upon liquidation, dissolution or
winding up or reclassify any authorized Stock of the Corporation into any such
shares, or create, authorize or issue any obligation or security convertible
into or evidencing the right to purchase any such shares, or (ii) amend, alter
or repeal the provisions of the Articles, whether by merger, consolidation or
otherwise, so as to materially and adversely affect any right, preference,
privilege or voting power of the Series G Preferred Stock or the holders
thereof; provided, however, that any increase in the amount of the authorized
Preferred Stock or the creation or issuance of any other series of Preferred
Stock, or any increase in the amount of authorized shares of such series, in
each case ranking on a parity with or junior to the Series G Preferred Stock
with respect to payment of dividends or the distribution of assets upon
liquidation, dissolution or winding up, shall not be deemed to materially and
adversely affect such rights, preferences, privileges or voting powers.

                 (e)      The foregoing voting provisions will not apply if, at
or prior to the time when the act with respect to which such vote would
otherwise be required shall be effected, all outstanding shares of Series G
Preferred Stock shall have been redeemed or called for redemption upon proper
notice and sufficient funds shall have been deposited in trust to effect such
redemption.

                 14.7.7      Conversion.  The Series G Preferred Stock is not
         convertible into or exchangeable for any other property or securities
         of the Corporation, except that the shares of Series G Preferred Stock
         will automatically be converted by the Corporation into shares of
         Excess Stock and transferred to a Trust in accordance with Section 7.4
         of Article VII and Article IX of the Articles in the same manner that
         Common Stock is converted into Excess Stock and transferred to a Trust
         pursuant thereto, in order to ensure that the Corporation remains
         qualified as a REIT for federal income tax purposes.





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