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SIGNATURE
TITLE
PETROLEUM & RESOURCES CORPORATION
RESOLUTION ADOPTED AT A MEETING OF THE
BOARD OF DIRECTORS
JULY 9, 1998
At a meeting of the Board of Directors, a proposal was made to amend
the Corporation's By-laws to adopt a provision requiring advance notice from
shareholders of any proposals submitted for consideration at an annual or
special meeting of the Corporation. After discussion and on motion duly made,
seconded and unanimously adopted, it was - - -
RESOLVED, that Article Two of the Corporation's By-laws is hereby
amended to adopt a new Section 2.11 to be added thereto, as follows:
SECTION 2.11. Advance Notice of Stockholder Nominees for Director and
Other Stockholder Proposals.
The matters to be considered and brought before any annual or special
meeting of stockholders of the Corporation shall be limited to only
such matters, including the nomination and election of directors, as
shall be brought properly before such meeting in compliance with the
procedures set forth in this Section 2.11.
For any matter to be properly before any annual meeting of
stockholders, the matter must be (i) specified in the notice of annual
meeting given by or at the direction of the Board of Directors, (ii)
otherwise brought before the annual meeting by or at the direction of
the Board of Directors, or (iii) brought before the annual meeting in
the manner specified in this Section 2.11 (b) by a stockholder of
record or a stockholder (a "Nominee Holder") that holds voting
securities entitled to vote at meetings of stockholders through a
nominee or "street name" holder of record and can demonstrate to the
Corporation such indirect ownership and such Nominee Holder's
entitlement to vote such securities. In addition to any other
requirements under applicable law and the Articles of Incorporation and
By-Laws of the Corporation, persons nominated by stockholders for
election as directors of the Corporation and any other proposals by
stockholders shall be properly brought before the meeting only if
notice of any such matter to be presented by a stockholder at such
meeting of stockholders (the "Stockholder Notice") shall be delivered
to the Secretary of the Corporation at the principal executive office
of the Corporation not less than 60 nor more than 90 days prior to the
first anniversary date of the annual meeting for the preceding year;
provided, however, if and only if the annual meeting is not scheduled
to be held within a period that commences 30 days before such
anniversary date and ends 30 days after such anniversary date (an
annual meeting date outside such period being referred to herein as an
"Other Annual Meeting Date"), such Stockholder Notice shall be given in
the manner provided herein by the later of the close of business on (i)
the date 60 days prior to such Other Meeting Date or (ii) two weeks
following the date such Other Annual Meeting Date is first publicly
announced or disclosed. Any stockholder desiring to nominate any person
or persons (as the case may be) for election as a director or directors
of the Corporation shall deliver, as part of such Stockholder Notice:
(i) a statement in writing setting forth (A) the name of the person or
persons to be nominated, (B) the number and class of all shares of each
class of stock of the Corporation owned of record and beneficially by
each such person, as reported to such stockholder by such nominee(s),
(C) the information regarding each such person required by paragraph
(b) of Item 22 of Rule 14a-101 under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), adopted by the Securities and
Exchange Commission (or the corresponding provisions of any regulation
or rule subsequently adopted by the Securities and Exchange Commission
applicable to the Corporation), (D) whether such stockholder believes
any nominee will be an "interested person" of the Corporation (as
defined in the Investment Company Act of 1940, as amended) and, if not
an "interested person", such information regarding each nominee that
will be sufficient for the Corporation to make such determination, and
(E) the number and class of all shares of each class of stock of the
Corporation owned of record and beneficially by such stockholder; (ii)
each such person's signed consent to serve as a director of the
Corporation if elected; (iii) such stockholder's name and address; and,
(iv) in the case of a Nominee Holder, evidence establishing such
Nominee Holder's indirect ownership of, and entitlement to vote,
securities at the meeting of stockholders. Any stockholder who gives a
Stockholder Notice of any matter proposed to be brought before the
meeting (not involving nominees for director) shall deliver, as part of
such Stockholder Notice, the text of the proposal to be presented; a
brief written statement of the reasons why such stockholder favors the
proposal; such stockholder's name and address; the number and class of
all shares of each class of stock of the Corporation owned of record
and beneficially by such stockholder; if applicable, any material
interest of such stockholder in the matter proposed (other than as a
stockholder); and, in the case of a Nominee Holder, evidence
establishing such Nominee Holder's indirect ownership of, and
entitlement to vote, securities at the meeting of stockholders. As used
herein, shares "beneficially owned" shall mean all shares that such
person is deemed to beneficially own pursuant to Rules 13d-3 and 13d-5
under the Exchange Act.
Notwithstanding anything in this Section 2.11(b) to the contrary, in
the event that the number of directors to be elected to the Board of
Directors of the Corporation is increased and either all of the
nominees for director or the size of the increased Board of Directors
are not publicly announced or disclosed by the Corporation at least 70
days prior to the first anniversary of the preceding year's annual
meeting, a Stockholder Notice shall also be considered timely
hereunder, but only with respect to nominees for any new positions
created by such increase, if it shall be delivered to the Secretary of
the Corporation at the principal executive office of the Corporation
not later than the close of business two weeks following the first date
all of such nominees or the size of the increased Board of Directors
shall have been publicly announced or disclosed.
Only such matters shall be properly brought before a special meeting of
stockholders as shall have been brought before the meeting pursuant to
the Corporation's notice of meeting. In the event the Corporation calls
a special meeting of stockholders for the purpose of electing one or
more directors to the Board of Directors, any stockholder may nominate
a person or persons (as the case may be), for election to such
position(s) as specified in the Corporation's notice of meeting, if the
Stockholder Notice required by Section 2.11 (b) hereof shall be
delivered to the Secretary of the Corporation at the principal
executive office of the Corporation not later than the close of
business two weeks following the day on which the date of the special
meeting and of the nominees proposed by the Board of Directors to be
elected at such meeting is publicly announced or disclosed.
For purposes of this Section 2.11, a matter shall be deemed to have
been "publicly announced or disclosed" if such matter is disclosed in a
press release reported by the Dow Jones News Service, Associated Press
or comparable national news service or in a document publicly filed by
the Corporation with the Securities and Exchange Commission.
In no event shall the adjournment of an annual meeting, or any
announcement thereof, commence a new period for the giving of notice as
provided in this Section 2.11. This Section 2.11 shall not apply to
stockholder proposals made pursuant to Rule 14a-8 under the Exchange
Act.
(f) The person presiding at any meeting of stockholders, in addition to
making any other determinations that may be appropriate to the conduct
of the meeting, shall have the power and duty to determine whether
notice of nominees and other matters proposed to be brought before a
meeting has been duly given in the manner provided in this Section 2.11
and, if not so given, shall direct and declare at the meeting that such
nominees and other matters shall not be considered.
* * * * * * * * * * * * *
I, Lawrence L. Hooper, Jr., the duly elected Secretary and General
Counsel of Petroleum & Resources Corporation, a Maryland corporation, hereby
certify the foregoing to be a true copy of the resolutions adopted at a meeting
of the Board of Directors of the Corporation on July 9, 1998, at which meeting a
quorum was present and voted on the resolutions. I further certify that said
resolutions continue in full force and effect.
ATTEST: /s/ Lawrence L. Hooper, Jr.
______________________________
Secretary and General Counsel
Baltimore, Maryland
July 9, 1998
