SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-A
FOR REGISTRATION OF CERTAIN CLASSES OF SECURITIES
PURSUANT TO SECTION 12(b) OR 12(g) OF THE
SECURITIES EXCHANGE ACT OF 1934
BFC FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Florida 59-2022148
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation)
1750 E. Sunrise Boulevard
Fort Lauderdale, Florida 33304
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(Address of principal executive offices) (Zip code)
If this form relates to the registration of securities pursuant to Section 12(b)
of the Exchange Act and is effective pursuant to General Instruction A.(c),
please check the following box. [ ]
If this form relates to the registration of securities pursuant to Section 12(g)
of the Exchange Act and is effective pursuant to General Instruction A.(d),
please check the following box. [X]
Securities to be registered pursuant to Section 12(b) of the Act:
None
Securities to be registered pursuant to Section 12(g) of the Act:
Class A Common Stock
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(Title of Class)
<PAGE>
Item 1. Description of Registrant's Securities to be Registered.
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The following summary description of the class A common stock, par value $.01
per share (the "Class A Common Stock"), of BFC Financial Corporation (the
"Company") does not purport to be complete and is subject to the more detailed
provisions of the Company's Articles of Incorporation, as amended, and Bylaws
and is qualified in its entirety by reference thereto.
The authorized capital stock of the Company consists of (i) 20,000,000 shares of
serial Special Class A Common Stock, par value $.01 per share, of which
20,000,000 shares have been designated "Class A Common Stock", (ii) 20,000,000
shares of common stock, par value $.01 per share, which was automatically
redesignated "Class B Common Stock" upon the authorization on October 6, 1997 of
the issuance of shares of Class A Common Stock, and (iii) 10,000,000 shares of
preferred stock, par value $.01 per share (the "Preferred Stock").
The Class A Common Stock and Class B Common Stock have substantially identical
terms except that (i) Class B Common Stock is entitled to one vote per share
while Class A Common Stock has no voting rights other than those which may be
required by Florida law in certain limited circumstances and (ii) Class B Common
Stock will be convertible at the option of the holder into one share of Class A
Common Stock.
Voting
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The holders of Class B Common Stock currently possess exclusive voting rights in
the Company. On matters submitted to the shareholders of the Company, the
holders of Class B Common Stock will be entitled to one vote for each share
held, while holders of Class A Common Stock will not be entitled to vote except
as may be required by Florida law.
Dividends
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Holders of shares of Class A Common Stock shall be entitled to share pro rata
with the holders of shares of Class B Common Stock such dividends as may be
declared by the Board of Directors out of funds legally available therefor. With
respect to dividends or other distributions other than cash (including stock
splits and stock dividends), the distribution per share with respect to Class A
Common Stock will be identical to the distribution per share with respect to
Class B Common Stock, except that a stock dividend or other distribution to
holders of Class A Common Stock may be declared and issued in Class A Common
Stock while a stock dividend or other distribution to holders of Class B Common
Stock may be declared and issued in either Class A Common Stock or Class B
Common Stock (at the discretion of the Board) provided that the number of any
shares so issued is, on a per share basis, the same.
Liquidation Rights
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In the event of any voluntary or involuntary liquidation, dissolution or winding
of the Company, the remaining assets of the Company legally available for
distribution will be distributed ratably, in cash or in kind, among the holders
of Class A Common Stock and Class B Common Stock.
Miscellaneous
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Neither the Class A Common Stock nor the Class B Common Stock is entitled to any
preemptive right to subscribe for or receive any shares of any class of stock of
the Company (or any securities convertible into shares of stock of the Company)
issued in the future. The transfer agent and registrar for the Class A Common
Stock is ChaseMellon Shareholder Services, Ridgefield Park, New Jersey.
Item 2. Exhibits.
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3.1 Amended and Restated Articles of Incorporation of the Company.
3.2 Bylaws of the Company.
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
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3.1 Amended and Restated Articles
of Incorporation of the Company.
3.2 Bylaws of the Company.
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act of
1934, the registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereto duly authorized.
BFC FINANCIAL CORPORATION
By: /S/
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Glen R. Gilbert
Executive Vice President
Date: October 16, 1997
10/06/97
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
BFC FINANCIAL CORPORATION
ARTICLE I
NAME
The name of this Corporation is BFC Financial Corporation.
ARTICLE II
NATURE OF BUSINESS
This Corporation is being formed for the following purposes:
To conduct any and all business activities permitted by the laws of the State of
Florida.
To generally have and exercise all powers, rights and privileges necessary and
incident to carrying out properly the objects mentioned.
To carry on any other lawful business and to do any and everything necessary,
suitable, convenient or proper for the accomplishment of any of the purposes or
the attainment of any of all of the objects hereinbefore enumerated or
incidental to the purposes and powers herein named or for the enhancement of the
value of the property of the corporation or which at any time appear conducive
thereto or expedient.
ARTICLE III
TERM OF EXISTENCE
This Corporation shall have perpetual existence unless sooner dissolved in
accordance with the laws of the State of Florida.
ARTICLE IV
CAPITAL STOCK
The Corporation is authorized to have outstanding three classes of capital stock
designated Special Class A Common Stock, Class B Common Stock (previously
designated Common Stock), and Preferred Stock.
Special Class A Common Stock: The Corporation is authorized to issue 20,000,000
shares of Special Class A Common Stock at a par value of $.01 per share. The
Special Class A Common Stock may be issued for time to time in one or more
series in any manner permitted by law as determined from time to time by the
Board of Directors and stated in the resolution or resolutions providing for the
issuance of the Special Class A Common Stock adopted by the Board of Directors
pursuant to authority hereby vested in the Board, each series to be
appropriately designated prior to the issuance of any shares thereof by some
distinguishing letter number, or title. All shares of each series of Special
Class A Common Stock shall be identical except as to the following relative
rights and preferences as to which there may be variations between different
series:
1. the rate or manner of payment of dividends and the dates from which
such dividends shall commence to accrue;
2. whether shares may be redeemed and, if so, the redemption price and
the terms and conditions of redemption;
3. the amount payable upon shares in the event of voluntary or
involuntary liquidation;
4. sinking fund provisions, if any, for the redemption or purchase of
shares;
5. the terms and conditions, if any, on which shares may be converted;
and
6. voting rights, if any.
Provided, however, that shares of Special Class A Common Stock shall in no event
have voting rights equal to or greater than the Company's Class B Common Stock.
The designation of each particular series of Special Class A Common Stock and
its terms in respect of the foregoing particulars shall be fixed and determined
by the Board of Directors in any manner permitted by law and stated in the
resolution or resolutions providing for the issuance of such shares adopted by
the Board of Directors pursuant to authority hereby vested in it, before any
shares of such series are issued. The Board of Directors may from time to time
increase the number of shares of any series of Special Class A Common Stock
already created by providing that any unissued Special Class A Common Stock
shall constitute part of such series, or may decrease (but not below the number
of shares thereof then outstanding) the number of shares of any series of
Special Class A Common Stock already created by providing that any unissued
shares previously assigned to such series shall no longer constitute part
thereof. The Board of Directors is hereby empowered to classify or reclassify
any unissued Special Class A Common Stock by fixing or altering the terms
thereof in respect of the above mentioned particulars and by assigning the same
to an existing or newly created series from time to time before the issuance of
such shares.
Class B Common Stock: The Corporation is authorized to issue 20,000,000 shares
of Class B Common Stock at a par value of $.01 per share.
Preferred Stock: The Corporation is authorized to issue 10,000,000 shares of
$.01 par value Preferred Stock. The Preferred Stock may be divided into and
issued in series by the Board of Directors as set forth below.
The Board of Directors is authorized to divide the Preferred Stock into series
or classes having the relative rights, preferences and limitations as may from
time to time be determined by the Board of Directors. Without limiting the
foregoing, the Board of Directors is expressly authorized to fix and determine:
1. The number of shares which shall constitute the series and the
designation of such shares.
2. The rate and the time at which dividends on that series shall be paid
and whether, and the extent to which, such dividends shall be
cumulative or noncumulative.
3. The right of the holders of the series to vote.
4. The preferential rights of the holders upon liquidation or
distribution of the assets of the Corporation.
5. The terms upon which the holders of any series may convert their
shares into any class or classes.
6. The terms and conditions upon which the series may be redeemed and the
terms and amount of any sinking fund or purchase fund for the purchase
or redemption of that series.
ARTICLE V
PREFERENCES, LIMITATION AND
RELATIVE RIGHTS OF SHARES
Section 1. Dividends
Holders of record of each share of Class B Common Stock shall be entitled to
share pro rata in cash dividends when and as declared by the Board of Directors
out of funds legally available at the rate per share per annum and at the time
and in the manner determined by the Board of Directors and each holder of the
Special Class A Common Stock and Preferred Stock shall have such rights to
receive dividends as is set forth herein, or if not set forth herein, as is
determined by the Board of Directors at the time of issuance of such shares.
Section 2. Rights Upon Liquidation or Dissolution
In the event of any voluntary or involuntary liquidation, dissolution or winding
up of this Corporation, the remaining assets of this Corporation shall be
payable to and distributed ratably among the holders of the Class B Common Stock
and to the holders of Special Class A Common Stock and Preferred Stock as shall
have such rights on liquidation, dissolution or winding up of the Corporation's
affairs as is set forth herein, of if not set forth herein, as the Board of
Directors at the time of issuance of such shares shall have determined.
Section 3. Voting Rights
The entire voting power for the election of Directors and for all other purposes
shall be vested in the holders of the outstanding capital stock, as provided
herein.
Each holder of Class B Common Stock shall be entitled to one vote per
share.
As provided in Article IV, each share of Special Class A Common Stock
shall have such voting rights as is determined by the Board of Directors of the
Company as determined from time to time; provided, however, in no event shall
any such voting rights fixed by the Board with respect to each share of Special
Class A Common Stock be equal to or greater than the per share voting rights of
the Class B Common Stock.
As provided in Article IV, each Preferred Share shall
have such voting rights, if any, as the Board of Directors may determine from
time to time.
Section 4. Conversion Rights
The holders of record of Class B Common Stock may, at any time after the first
issuance of shares of Special Class A Common Stock, convert their shares into
Special Class A Common Stock on a one-for-one basis.
Section 5. Series A Junior Participating Preferred Stock
1. Designation and Amount. The shares of such series shall be designated as
"Series A Junior Participating Preferred Stock" (the "Series A Preferred
Stock") and the number of shares constituting such series shall be 100,000.
2. Dividends and Distributions.
A. Subject to the provisions for adjustment hereinafter set forth, the
holders of shares of Series A Preferred Stock shall be entitled to
receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, (i) cash dividends in an
amount per share (rounded to the nearest cent) equal to 100 times the
aggregate per share amount of all cash dividends declared or paid on
the Class B Common Stock of the Corporation and (ii) a preferential
cash dividend (the "Series A Preferential Cash Dividends"), if any, on
the first day of February, May, August and November of each year (each
a "Quarterly Dividend Payment Date"), commencing on the first
Quarterly Dividend Payment Date after the first issuance of a share or
fraction of a share of Series A Preferred Stock, in an amount equal to
$.75 per share of Series A Preferred Stock less the per share amount
of all cash dividends declared on the Series A Preferred Stock
pursuant to clause (i) of this sentence since the immediately
preceding Quarterly Dividend Payment Date or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any
share or fraction of a share of Series A Preferred Stock. In the event
the Corporation shall, at any time after the issuance of any share or
fraction of a share of Series A Preferred Stock, make any distribution
on the shares of Class B Common Stock of the Corporation, whether by
way of a dividend or a reclassification of stock, a recapitalization,
reorganization or partial liquidation of the Corporation or otherwise,
which is payable in cash or any debt security, debt instrument, real
or personal property or any other property (other than cash dividends
subject to the immediately preceding sentence, a distribution of
shares of Class B Common Stock or other capital stock of the
Corporation or a distribution of rights or warrants to acquire any
such share, including any debt security convertible into or
exchangeable for any such share, at a price less than the Fair Market
Value (as determined by the Board of Directors) of such share), then
and in each such event the Corporation shall simultaneously pay on
each then outstanding share of Series A Preferred Stock of the
Corporation a distribution, in like kind, of 100 times such
distribution paid on a share of Class B Common Stock (subject to the
provisions for adjustment hereinafter set forth). The dividends and
distributions on the Series A Preferred Stock to which holders thereof
are entitled pursuant to clause (i) of the first sentence of this
paragraph and pursuant to the second sentence of this paragraph are
hereinafter referred to as "Participating Dividends" and the multiple
of such cash and non-cash dividends on the Class B Common Stock
applicable to the determination of the Participating Dividends, which
shall be 100 initially but shall be adjusted from time to time as
hereinafter provided, is hereinafter referred to as the "Dividend
Multiple". In the event the Corporation shall at any time after
January 10, 1997 declare or pay any dividend or make any distribution
on Class B Common Stock payable in shares of Class B Common Stock, or
effect a subdivision or split or a combination, consolidation or
reverse split of the outstanding shares of Class B Common Stock into a
greater or lesser number of shares of Class B Common Stock, then in
each such case the Dividend Multiple thereafter applicable to the
determination of the amount of Participating Dividends which holders
of shares of Series A Preferred Stock shall be entitled to receive
shall be the Dividend Multiple applicable immediately prior to such
event multiplied by a fraction the numerator of which is the number of
shares of Class B Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Class B
Common Stock that were outstanding immediately prior to such event.
B. The Corporation shall declare each Participating Dividend at the
same time it declares any cash or non-cash dividend or distribution on
the Class B Common Stock in respect of which a Participating Dividend
is required to be paid. No cash or non-cash dividend or distribution
on the Class B Common Stock in respect of which a Participating
Dividend is required to be paid shall be paid or set aside for payment
on the Class B Common Stock unless a Participating Dividend in respect
of such dividend or distribution on the Class B Common Stock shall be
simultaneously paid, or set aside for payment, on the Series A
Preferred Stock.
C. Series A Preferential Cash Dividends shall begin to accrue on
outstanding shares of Series A Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issuance of any
shares of Series A Preferred Stock. Accrued but unpaid Series A
Preferential Cash Dividends shall be cumulative but shall not bear
interest. Series A Preferential Cash Dividends paid on the shares of
Series A 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.
3. Voting Rights. The holders of shares of Series A Preferred Stock shall
have the following voting rights:
A. Subject to the provisions for adjustment hereinafter set forth,
each share of Series A Preferred Stock shall entitle the holder
thereof to 100 votes on all matters submitted to a vote of the
shareholders of the Corporation. The number of votes which a holder of
a share of Series A Preferred Stock is entitled to cast, as the same
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 January 10, 1997 declare or pay
any dividend on Class B Common Stock payable in shares of Class B
Common Stock, or effect a subdivision or split or a combination,
consolidation or reverse split of the outstanding shares of Class B
Common Stock into a greater or lesser number of shares of Class B
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 A Preferred Stock shall be entitled
after such event shall be the Vote Multiple immediately prior to such
event multiplied by a fraction the numerator of which is the number of
shares of Class B Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Class B
Common Stock that were outstanding immediately prior to such event.
B. Except as otherwise provided in these Articles of Incorporation or
in the Bylaws of the Corporation, the holders of shares of Series A
Preferred Stock and the holders of shares of Class B Common Stock
shall vote together as a single voting group on all matters submitted
to a vote of shareholders of the Corporation.
C. Unless otherwise provided in these Articles of Incorporation, in
the event that any preferential cash dividend to which the holders of
any currently existing or future series of the Preferred Stock are
entitled (collectively, the "Preferred Cash Dividends") has accrued
for four or more quarterly dividend periods, whether consecutive or
not, and shall not have been declared and paid (or a sum sufficient
for the payment thereof has been set aside) in full, the holders of
record of such series of Preferred Stock, other than any series in
respect of which such right is expressly withheld by these Articles of
Incorporation (such holders existing from time to time being
hereinafter referred to as the "Unpaid Series Holders"), acting as a
single voting group, shall have the right, at the next meeting of
shareholders called for the election of Directors, to elect two
members to the Board of Directors, which Directors (hereinafter, the
"Preferred Directors") shall be in addition to the number of Directors
required by the Bylaws of the Corporation prior to such event, to
serve until the next annual meeting of shareholders and until their
successors are elected and qualified or their earlier resignation,
removal or incapacity or until such earlier time as all accrued and
unpaid Preferred Cash Dividends shall have been paid (or a sum
sufficient for the payment thereof has been set aside) in full. If at
any annual meeting of shareholders at which the term of a Preferred
Director is fixed to expire there are accrued Preferred Cash Dividends
which have not been paid (or a sum sufficient for payment thereof has
not been set aside) in full, the Unpaid Series Holders shall have the
right to elect a Preferred Director to the vacant Directorship
resulting from the expiration of the term of such Preferred Director
in the manner provided in the immediately preceding sentence until all
accrued and unpaid Preferred Cash Dividends shall have been paid (or a
sum sufficient for payment thereof has been set aside) in full;
provided, however, that at no time shall more than two Preferred
Directors be members of the Board of Directors. The Preferred
Directors may be removed, with or without cause, by the Unpaid Series
Holders. Vacancies in such Directorships (whether caused by death,
resignation, removal or otherwise) may be filled (if any accrued
Preferred Cash Dividends remain unpaid or a sum sufficient for payment
thereof has not been set aside) only by the Unpaid Series Holders (or
by the remaining Director elected by the Unpaid Series Holders, if
there be one) in the manner permitted by law; provided, however, that
any such action by the Unpaid Series Holders shall be taken at a
meeting of shareholders or shall be taken by written consent; provided
further, however, that by a vote of a majority of the Board of
Directors in office other than the Preferred Directors, the Preferred
Directors may be removed immediately after all accrued and unpaid
Preferred Cash Dividends shall have been paid (or a sum sufficient for
the payment thereof has been set aside) in full.
D. Except as otherwise provided in these Articles of Incorporation or
in the Bylaws of the Corporation, holders of Series A 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 Class B Common Stock as set forth herein) for the taking of any
corporate action.
4. Certain Restrictions.
A. Whenever Series A Preferential Cash Dividends or Participating
Dividends are in arrears or the Corporation shall be in default of
payment thereof, thereafter and until all accrued and unpaid Series A
Preferential Cash Dividends and Participating Dividends, whether or
not declared, on shares of Series A Preferred Stock outstanding shall
have been paid (or a sum sufficient for payment thereof has been set
aside) in full, and in addition to any and all other rights which any
holder of shares of Series A Preferred Stock may have in such
circumstances, 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 A Preferred
Stock;
(ii) declare or pay dividends on or make any other distributions
on any shares of stock ranking on a parity as to dividends with
the Series A Preferred Stock, unless dividends are paid ratably
on the Series A 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 if the full dividends accrued thereon were to be paid;
(iii) except as permitted by subparagraph (iv) of this paragraph
(4)(A), redeem or 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 A
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 (both as to dividends and upon liquidation,
dissolution or winding up) to the Series A Preferred Stock; or
(iv) purchase or otherwise acquire for consideration any shares
of Series A Preferred Stock, or any shares of stock ranking on a
parity with the Series A Preferred Stock (either as to dividends
or upon liquidation, dissolution or winding up), except in
accordance with a purchase offer made 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 (as hereinafter
defined) of the Corporation to purchase or otherwise acquire for
consideration any shares of stock of the Corporation unless the
Corporation could, under paragraph (A) of this Section 4, purchase or
otherwise acquire such shares at such time and in such manner. A
"Subsidiary" of the Corporation shall mean any corporation or other
entity of which securities or other ownership interests having
ordinary voting power sufficient to elect a majority of the Board of
Directors or other persons performing similar functions are
beneficially owned, directly or indirectly, by the Corporation or by
any corporation or other entity that is otherwise controlled by the
Corporation.
C. The Corporation shall not issue any shares of Series A Preferred
Stock except upon exercise of the Rights (the "Rights") issued
pursuant to that certain Rights Agreement dated as of January 10, 1997
between the Corporation and ChaseMellon Shareholder Services, L.L.C.,
as rights agent, a copy of which is on file with the Secretary of the
Corporation at its principal executive office and shall be made
available to shareholders of record without charge upon written
request therefor addressed to said Secretary. Notwithstanding the
foregoing sentence, nothing contained in the provisions hereof shall
prohibit or restrict the Corporation from issuing for any purpose any
series of Preferred Stock with rights and privileges similar to,
different from, or greater than, those of the Series A Preferred
Stock.
5. Reacquired Shares. Any shares of Series A 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 upon their retirement and cancellation shall become authorized but
unissued shares of Preferred Stock, without designation as to series, and
such shares may be reissued as part of a new series of Preferred Stock to
be created by resolution or resolutions of the Board of Directors.
6. Liquidation, Dissolution or Winding Up. Upon any voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, no
distribution shall be made (A) to the holders of shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding
up) to the Series A Preferred Stock unless the holders of shares of Series
A Preferred Stock shall have received, subject to adjustment as hereinafter
provided, (i) $40 per one-hundredth share plus an amount equal to accrued
and unpaid dividends and distributions thereon, whether or not declared, to
the date of such payment, or (ii) if greater than the amount specified in
clause (A)(i) of this sentence, an amount equal to 100 times the aggregate
amount to be distributed per share to holders of Class B Common Stock, as
the same may be adjusted as hereinafter provided, and (B) to the holders of
stock ranking on a parity upon liquidation, dissolution or winding up with
the Series A Preferred Stock, unless simultaneously therewith distributions
are made ratably on the Series A Preferred Stock and all other shares of
such parity stock in proportion to the total amounts to which the holders
of shares of Series A Preferred Stock are entitled under clause (A)(i) of
this sentence and to which the holders of such parity shares are entitled,
in each case upon such liquidation, dissolution or winding up. The amount
to which holders of Series A Preferred Stock may be entitled upon
liquidation, dissolution or winding up of the Corporation pursuant to
clause (A) of the foregoing sentence is hereinafter referred to as the
"Participating Liquidation Amount" and the multiple of the amount to be
distributed to holders of shares of Class B Common Stock upon the
liquidation, dissolution or winding up of the Corporation applicable
pursuant to said clause to the determination of the Participating
Liquidation Amount, as said multiple may be adjusted from time to time as
hereinafter provided, is hereinafter referred to as the "Liquidation
Multiple". In the event the Corporation shall at any time after January 10,
1997 declare or pay any dividend on Class B Common Stock payable in shares
of Class B Common Stock, or effect a subdivision or split or a combination,
consolidation or reverse split of the outstanding shares of Class B Common
Stock into a greater or lesser number of shares of Class B Common Stock,
then in each such case the Liquidation Multiple thereafter applicable to
the determination of the Participating Liquidation Amount to which holders
of Series A Preferred Stock shall be entitled after such event shall be the
Liquidation Multiple applicable immediately prior to such event multiplied
by a fraction the numerator of which is the number of shares of Class B
Common Stock outstanding immediately after such event and the denominator
of which is the number of shares of Class B Common Stock that were
outstanding immediately prior to such event.
7. Certain Reclassifications. In the event that holders of shares of Class
B Common Stock of the Corporation receive after January 10, 1997 in respect
of their shares of Class B Common Stock any share of capital stock of the
Corporation (other than any share of Class B Common Stock of the
Corporation), whether by way of reclassification, recapitalization,
reorganization, dividend or other distribution or otherwise (a
"Transaction"), then and in each such event the dividend rights, voting
rights and rights upon the liquidation, dissolution or winding up of the
Corporation of the shares of Series A Preferred Stock shall be adjusted so
that after such event the holders of Series A Preferred Stock shall be
entitled, in respect of each share of Series A Preferred Stock held, in
addition to such rights in respect thereof to which such holder was
entitled immediately prior to such adjustment, to (i) such additional
dividends as equal the Dividend Multiple in effect immediately prior to
such Transaction multiplied by the additional dividends which the holder of
a share of Class B Common Stock shall be entitled to receive by virtue of
the receipt in the Transaction of such capital stock, (ii) such additional
voting rights as equal the Vote Multiple in effect immediately prior to
such Transaction multiplied by the additional voting rights which the
holder of a share of Class B Common Stock shall be entitled to receive by
virtue of the receipt in the Transaction of such capital stock and (iii)
such additional distributions upon liquidation, dissolution or winding up
of the Corporation as equal the Liquidation Multiple in effect immediately
prior to such Transaction multiplied by the additional amount which the
holder of a share of Class B Common Stock shall be entitled to receive upon
liquidation, dissolution or winding up of the Corporation by virtue of the
receipt in the Transaction of such capital stock, as the case may be, all
as provided by the terms of such capital stock.
8. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares
of Class B Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each
outstanding share of Series A Preferred Stock shall at the same time be
similarly exchanged for or changed into the aggregate amount of stock,
securities, cash and/or other property (payable in like kind), as the case
may be, for which or into which each share of Class B Common Stock is
changed or exchanged multiplied by the highest of the Vote Multiple, the
Dividend Multiple or the Liquidation Multiple in effect immediately prior
to such event.
9. Effective Time of Adjustments.
A. Adjustments to the Series A Preferred Stock required by the
provisions hereof shall be effective as of the time at which the event
requiring such adjustments occurs.
B. The Corporation shall give prompt written notice to each holder of
a share of Series A Preferred Stock of the effect of any adjustment to
the voting rights, dividend rights or rights upon liquidation,
dissolution or winding up of the Corporation of such shares required
by the provisions hereof. Notwithstanding the foregoing sentence, the
failure of the Corporation to give such notice shall not affect the
validity of or the force or effect of or the requirement for such
adjustment.
10. No Redemption. The shares of Series A Preferred Stock shall not be
redeemable at the option of the Corporation or any holder thereof.
Notwithstanding the foregoing sentence of this Section 10, the Corporation
may acquire shares of Series A Preferred Stock in any other manner
permitted by law and the Articles of Incorporation.
11. Ranking. Unless otherwise provided in these Articles of Incorporation,
the Series A Preferred Stock shall rank junior to all other series of the
Corporation's Preferred Stock as to the payment of dividends and the
distribution of assets on liquidation, dissolution or winding up and shall
rank senior to the Class B Common Stock and Class A Common Stock.
12. Amendment. These Articles of Incorporation of the Corporation shall not
be amended in any manner which would adversely affect the rights,
preferences or limitations of the Series A Preferred Stock without, in
addition to any other vote of shareholders required by law, the approval of
the holders of a majority of (1) the then outstanding Rights (as defined in
Section 5(4)(C) of this Article V) and (2) the then outstanding shares of
the Series A Preferred Stock, with the holders of the Rights and the
holders of the Series A Preferred Stock voting together as a single voting
group; provided, however, that the holder of each share of Series A
Preferred Stock shall have one vote and the holder of each Right shall have
one one-hundredth of a vote with respect to each such amendment."
Section 6. Class A Common Stock
1. Designation and Amount. The shares of such series shall be designated as
"Class A Common Stock" (the "Class A Common Stock") and the number of
shares constituting such series shall be 20,000,000.
2. Voting. A holder of shares of Class A Common Stock shall not be entitled
to vote.
3. Dividends. Holders of record of each share of Class A Common Stock shall
be entitled to share pro rata with the holders of shares of Class B Common
Stock such dividends when and as declared by the Board of Directors out of
funds legally available at the rate per share per annum and at the time and
in the manner determined by the Board of Directors, provided that with
respect to dividends or other distributions payable other than in cash,
including distributions pursuant to stock dividends or stock splits or
divisions, the distribution per share of Class A Common Stock must be
identical to the distribution per share of Class B Common Stock, except
that a dividend or other distribution to holders of Class A Common Stock
may be declared and issued in Class A Common Stock and a dividend or other
distribution to holders of Class B Common Stock may be declared and issued
in either Class A Common Stock or Class B Common Stock provided that in
each case the number of shares so declared and issued on a per share basis
to such holders is the same.
4. Rights upon Liquidation or Dissolution.In the event of any voluntary or
involuntary liquidation, dissolution, or winding up of this Corporation,
the holders of Class A Common Stock shall share pro rata with the holders
of Class B Common Stock the remaining assets of this Corporation payable to
holders of Class A Common Stock and Class B Common Stock.
ARTICLE VI
REGISTERED OFFICE AND AGENT
The street address of the registered office of the Corporation is 1750 East
Sunrise Boulevard, Fort Lauderdale, Florida and the name of the registered agent
of this Corporation at that address is Alan B. Levan.
ARTICLE VII
BOARD OF DIRECTORS
The number of directors may be either increased or diminished from time to time
by the By-Laws, but shall never be less than one (1).
ARTICLE VIII
CLASSES OF DIRECTORS
The By-Laws of this Corporation may provide that the Directors be divided into
two or more classes whose terms of office shall respectively expire at different
times, provided that no such term shall continue longer than three (3) years and
provided that at least one-fourth (1/4) in number of the Directors shall be
elected annually.
ARTICLE IX
AMENDMENTS TO
ARTICLES OF INCORPORATION
AND BY-LAWS
This Corporation reserves the right to amend or repeal any provisions contained
in these Articles of Incorporation or any amendments hereto; provided, however,
that any proposed amendment shall be approved by vote of the holders of
two-thirds of the Corporation's stock entitled to vote. However, in the event
any amendment to these Articles of Incorporation or amendments thereto are
recommended to the shareholders by at least two-thirds of the members of the
Corporation's Board of Directors, then the affirmative vote of two-thirds of the
shareholders of the Corporation shall not be required to adopt that amendment
and only the vote of a simple majority of the Corporation's stock entitled to
vote will be required.
The power to adopt, alter, amend or repeal the Corporation's By-Laws shall be
vested in the Board of Directors and the shareholders of this Corporation.
The affirmative vote of the holders of two-thirds of the Corporation's stock
entitled to vote shall be required to approve a merger, consolidation or other
acquisition and/or to approve a sale, lease or transfer of all or substantially
all of the assets of the Corporation. However, in the event any of these actions
is recommended to the shareholders by at least two-thirds of the members of the
Board of Directors, then the affirmative vote of two-thirds of the shareholders
of the Corporation shall not be required to adopt such action and only the vote
of a simple majority of the Corporation's stock entitled to vote will be
required.
ARTICLE X
POWERS
This Corporation shall have all of the corporate powers enumerated in the
Florida General Corporation Act.
ARTICLE XI
DIVIDENDS
Dividends payable in shares of any class may be paid to the holders of shares of
any other class.
ARTICLE XII
INDEMNIFICATION
This Corporation shall indemnify any and all of its Directors, officers,
employees or agents or former Directors, officers, employees or agents or any
person or persons who may have served at its request as a Director, officer,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise in which it owns shares of capital stock or of which it is a
creditor, to the full extent permitted by law. Said indemnification shall
include, but not be limited to, the expenses, including the cost of judgments,
fines, settlements and counsel's fees, actually and necessarily paid or incurred
in connection with any action, suit or proceeding, whether civil, criminal,
administrative or investigative, and any appeals thereof, to which any such
person or his legal representative may be made a party or may be threatened to
be made a party by reason of his being or having been a Director, officer,
employee or agent as herein provided. The foregoing right of indemnification
shall not be exclusive of any other rights to which any Directors, officer,
employee or agent may be entitled as a matter of law or which he may be lawfully
granted.
BY-LAWS OF
BFC FINANCIAL CORPORATION
ARTICLE I
MEETINGS OF SHAREHOLDERS
Section 1. Annual Meeting. The annual meeting of the shareholders of this
Corporation shall be held at the time and place designated by the Board of
Directors of the Corporation. The annual meeting of the shareholders for any
year shall be held no later than thirteen months after the last preceding annual
meeting of shareholders. Business transacted at the annual meeting shall include
the election of directors of the Corporation.
Section 2. Special Meetings. Special meetings of the shareholders shall be held
when directed by the President or the Board of Directors or when requested in
writing by the holders of not less than ten percent of all the shares entitled
to vote at the meeting. A special meeting requested by shareholders shall be
called for a date not less than ten nor more than sixty days after the request
is made, unless (in the case of the sixty day maximum) the shareholders
requesting the meeting designate a later date and unless (in the case of the ten
day minimum) the number of shareholders constituting a quorum shall waive the
ten day minimum notice period. The call for the meeting shall be issued by the
Secretary, unless the President, Board of Directors or shareholders requesting
the meeting shall designate another person to do so.
Section 3. Notice. Written notice stating the place, day and hour of the meeting
and, in the case of a special meeting, the purpose or purposes for which the
meeting is called shall be delivered not less than ten nor more than sixty days
before the meeting, unless the number of shareholders constituting a quorum
shall waive the ten day minimum notice period. The notice shall be delivered
personally or by first class mail by or at the direction of the President, the
Secretary or the officer or persons calling the meeting to each shareholder of
record entitled to vote at such meeting. If mailed, such notice shall be deemed
to be delivered when deposited in the United States mail addressed to the
shareholder at his address as it appears on the stock transfer books of the
Corporation, with postage thereon prepaid.
Section 4. Place. Meetings of shareholders may be held within or without the
State of Florida.
Section 5. Closing of Transfer Books and Fixing Record Date. The Board of
Directors may fix in advance a date as the record date for the determination of
shareholders for any purpose. Such date in any case to be not more than sixty
days and, in case of a meeting of shareholders, not less than ten days prior to
the date on which the particular action requiring such determination of
share-holders is to be taken.
Section 6. Voting Record. The Secretary shall make, at least ten days before
each meeting of shareholders, a complete list of shareholders entitled to vote
at such meeting or any adjournment thereof, with the address of and the number
and class and series, if any, of shares held by each. The list shall be kept on
file at the principal place of business of the Corporation for a period of ten
days prior to such meeting. Any shareholder shall be entitled to inspect the
list during usual business hours and said list shall be available at the time
and place of the meeting and shall be subject to inspection by any shareholder
at any time during the meeting. This Section 6 shall not be applicable, however,
if, as of the record date established pursuant to Section 5 of Article I hereof,
the Corporation has less than six shareholders.
Section 7. Shareholder Quorum and Voting.
a. A majority of the shares entitled to vote represented in person or by
proxy shall constitute a quorum at a meeting of shareholders. When a
specified item of business is required to be voted on by a class or series
of stock, a majority of the shares of such class or series shall constitute
a quorum for the transaction of such item of business by that class or
series. If a quorum is present, the affirmative vote of a majority of the
shares (or, when applicable, a class or series of stock) represented at the
meeting and entitled to vote on the subject matter shall be the act of the
shareholders unless otherwise provided by the Florida General Corporation
Act, as amended from time to time.
b. After a quorum has been established at a shareholders' meeting, the
subsequent withdrawal of shareholders so as to reduce the number of
shareholders entitled to vote at the meeting below the number required for
a quorum shall not affect the validity of any action taken at the meeting
or any adjournment thereof.
Section 8. Voting of Shares.
a. Each outstanding share of Common and/or Preferred stock shall have only
such voting rights as are specified by the Board of Directors in connection
with the designation of each series of Common Shares and/or Preferred
Shares which is authorized and issued pursuant to Article III of the
Articles of Incorporation. If the voting rights so designated with respect
to each series provide for more or less than one vote for any such share in
the series, every reference herein to a majority or other proportion of
shares shall refer to such a majority or other proportion of votes entitled
to be cast.
b. Treasury shares, shares of stock of this Corporation owned by another
corporation the majority of voting stock of which is owned or controlled by
this Corporation, and shares of stock of this Corporation held by it in a
fiduciary capacity shall not be voted, directly or indirectly, at any
meeting and shall not be counted in determining the total number of
outstanding shares at any given time.
c. A shareholder may vote either in person or by proxy executed in writing
by the shareholder or his duly authorized attorney-in-fact.
d. At each election for directors, every shareholder entitled to vote at
such election shall have the right to vote in person or by proxy the number
of shares owned by him for as many persons as there are directors to be
elected at that time and for whose election he has a right to vote or, if
cumulative voting is authorized by the Board of Directors in connection
with the designation of any series of Common Shares and/or Preferred Shares
which is authorized and issued pursuant to Article III of the Articles of
Incorporation, to accumulate his votes by giving one candidate as many
votes as the number of directors to be elected at that time multiplied by
the number of his votes shall produce or by distributing such votes on the
same principle among any number of such candidates.
e. Shares standing in the name of another corporation, domestic or foreign,
may be voted by the officer, agent or proxy designated by the By-laws of
the corporate shareholder or, in the absence of any applicable by-law, by
such person as the board of directors of the corporate shareholder may
designate. Proof of such designation may be made by presentation of a
certified copy of the By-laws or other instrument of the corporate
shareholder. In the absence of any such designation or in case of
conflicting designation by the corporate shareholder, the chairman of the
board, president, any vice president, secretary and treasurer of the
corporate shareholder shall be presumed to possess, in that order,
authority to vote such shares.
Section 9. Proxies.
a. Every shareholder entitled to vote at a meeting of shareholders or to
express consent or dissent without a meeting or a shareholder's duly
authorized attorney-in-fact may authorize another person or persons to act
for him by proxy.
b. Every proxy must be signed by the shareholder or his attorney-in-fact.
No proxy shall be valid after the expiration of eleven months from the date
thereof unless otherwise provided in the proxy. Every proxy shall be
revocable at the pleasure of the shareholder executing it, except as
otherwise required by applicable law.
Section 10. Action by Shareholders Without a Meeting.
a. Any action required by law, these By-Laws or the Articles of
Incorporation of this Corporation to be taken at any annual or special
meeting of shareholders of the Corporation or any action which may be taken
at any annual or special meeting of such shareholders may be taken without
a meeting, without prior notice and without a vote if a consent in writing,
setting forth the action so taken, shall be signed by the holders of
outstanding stock having not less than the minimum number of votes that
would be necessary to authorize or take such action at a meeting at which
all shares entitled to vote thereon were present and voted. If any class or
series of shares is entitled to vote thereon as a class or series, such
written consent shall be required of the holders of a majority of the
shares of each class or series of shares entitled to vote as a class or
series thereon and of the total shares entitled to vote thereon.
b. Within ten days after obtaining such authorization by written consent,
notice shall be given to those shareholders who have not consented in
writing. The notice shall fairly summarize the material features of the
authorized action and, if the action be a merger, consolidation or sale or
exchange of assets for which dissenters rights are provided under this
applicable law, the notice shall contain a clear statement of the right of
shareholders dissenting therefrom to be paid the fair value of their shares
upon compliance with further provisions of applicable law regarding the
rights of dissenting shareholders.
ARTICLE II
DIRECTORS
Section 1. Function. All corporate powers shall be exercised by or under the
authority of and the business and affairs of a corporation shall be managed
under the direction of the Board of Directors.
Section 2. Qualification. Directors need not be residents of this State or
shareholders of this Corporation.
Section 3. Compensation. The Board of Directors shall have authority to fix the
compensation of the directors.
Section 4. Duties of Directors.
a. A director shall perform his duties as a director, including his duties
as a member of any committee of the Board upon which he may serve, in good
faith, in a manner he reasonably believes to be in the best interests of
the Corporation and with such care as an ordinarily prudent person in a
like position would use under similar circumstances.
b. In performing his duties, a director shall be entitled to rely on
information, opinions, reports or statements, including financial
statements and other financial data, in each case prepared by and presented
by:
(i) one or more officers or employees of the Corporation whom the
director reasonably believes to be reliable and competent in the
matters presented;
(ii) counsel, public accountants or other persons as to matters which
the director reasonably believes to be within such person's
professional or expert competence; or
(iii) a committee of the Board upon which he does not serve, duly
designated in accordance with a provision of the Articles of
Incorporation or the By-Laws, as to matters within its designated
authority, which committee the director reasonably believes to merit
confidence.
c. A director shall not be considered to be acting in good faith if he has
knowledge concerning the matter in question that would cause such reliance
described above to be unwarranted.
d. A person who performs his duties in compliance with this section shall
have no liability by reason of being or having been a director of the
Corporation.
e. The Board of Directors shall elect a Chairman to preside at all meetings
of the Board and at all shareholder meetings and to fix the dates of
meetings of the Board. In the absence of the President and upon the request
of a majority of the Board of Directors, the Chairman may assume the
authority of the President, as stated in these By-Laws, and transact any
business in which the President would otherwise be permitted to engage.
Section 5. Presumption of Assent. A director of the Corporation who is present
at a meeting of its Board of Directors at which action on any corporate matter
is taken shall be presumed to have assented to the action taken unless he votes
against such action or abstains from voting in respect thereto because of an
asserted conflict of interest.
Section 6. Number. This Corporation shall have not less than three (3) nor more
than twelve (12) directors as determined by the Board of Directors. The number
of directors may be increased or decreased from time to time by amendment to
these By-Laws, but no decrease shall have the effect of shortening the terms of
any incumbent director.
Section 7. Election and Term. The directors shall hold office for a term of
three years from the date of their election, provided that of the initial
members of the board, which shall initially consist of eight members, three
shall hold office for a term of three years, three for a term of two years and
two for a term of one year. After such initial election, one-third (1/3) of the
members of the board shall be elected annually for a three year term.
Section 8. Vacancies. Any vacancy occurring in the Board of Directors, including
any vacancy created by reason of an increase in the number of directors, may be
filled by the affirmative vote of a majority of the remaining directors though
less than a quorum of the Board of Directors. A director elected to fill a
vacancy caused by the resignation or removal of a director shall hold office for
the same term as that to which such director's predecessor was elected. In the
case of a director elected to fill a vacancy created by reason of an increase in
the number of directors, the director shall serve for the term designated by the
Board of Directors but in no event shall such term exceed three (3) years.
Section 9. Removal of Directors. At a meeting of shareholders called expressly
for that purpose, any director or the entire Board of Directors may be removed,
with or without cause, by a vote of the holders of a majority of the shares then
entitled to vote at an election of directors.
Section 10. Quorum and Voting. A majority of the number of directors fixed by
these By-Laws shall constitute a quorum for the transaction of business. The act
of the majority of the directors present at a meeting at which a quorum is
present shall be the act of the Board of Directors.
Section 11. Director Conflicts of Interest.
a. No contract or other transaction between this Corporation and one or
more of its directors or any other corporation, firm, association or entity
in which one or more of the directors are directors or officers or are
financially interested, shall be either void or voidable because of such
relationship or interest or because such director or directors are present
at the meeting of the Board of Directors or a committee thereof which
authorizes, approves or ratifies such contract or transaction or because
his or their votes are counted for such purpose, if:
(i) The fact of such relationship or interest is disclosed or known to
the Board of Directors or committee which authorizes, approves or
ratifies the contract or transaction by a vote or consent sufficient
for the purpose without counting the votes or consents of such
interested directors; or
(ii) The fact of such relationship or interest is disclosed or known
to the shareholders entitled to vote and they authorize, approve or
ratify such contract or transaction by vote or written consent; or
(iii) The contract or transaction is fair and reasonable as to the
Corporation at the time it is authorized by the board, a committee or
the shareholders.
b. Common or interested directors may be counted in determining the
presence of a quorum at a meeting of the Board of Directors or a committee
thereof which authorizes, approves or ratifies such contract or
transaction.
Section 12. Executive and Other Committees.
a. The Board of Directors, by resolution adopted by a majority of the full
Board of Directors, may designate from among its members an executive
committee and one or more other committees each of which, to the extent
provided in such resolution, shall have and may exercise all the authority
of the Board of Directors, except that no committee shall have the
authority to:
(i) approve or recommend to shareholders actions or proposals required
by law to be approved by shareholders;
(ii) designate candidates for the office of director, for purposes of
proxy solicitation or otherwise;
(iii) fill vacancies in the Board of Directors or any committee
thereof;
(iv) amend the By-Laws;
(v) authorize or approve the reacquisition of shares unless pursuant
to a general formula or method specified by the Board of Directors; or
(vi) authorize or approve the issuance or sale of or any contract to
issue or sell shares or designate the terms of a series of a class of
shares, except that the Board of Directors, having acted regarding
general authorization for the issuance or sale of shares, the
designation thereof may, pursuant to a general formula or method
specified by the Board of Directors, by resolution or by adoption of a
stock option or other plan, authorize a committee to fix the terms of
any contract for the sale of the shares and to fix the terms upon
which such shares may be issued or sold, including without limitation
the price, the rate or manner of payment of dividends, provisions for
redemption, sinking fund, conversion, voting or preferential rights
and provisions for other features of a class of shares or a series of
a class of shares, with full power in such committee to adopt any
final resolution setting forth all the terms thereof and to authorize
the statement of the terms of a series for filing with the Department
of State.
b. The Board of Directors, by resolution adopted in accordance with this
section, may designate one or more directors as alternate members of any
such committee, who may act in the place and stead of any absent member or
members at any meeting of such committee.
Section 13. Chairman of the Board. The Board of Directors shall elect a Chairman
to preside at all meetings of the Board and at all shareholder meetings and to
fix the dates of meetings of the Board. In the absence of the President and upon
the request of a majority of the Board of Directors, the Chairman may assume the
authority of the President, as stated in these By-Laws, and transact any
business in which the President would otherwise be permitted to engage.
Section 14. Place of Meetings. Regular and special meetings of the Board of
Directors and Executive and other committees, created pursuant to Section 12 of
Article II hereof, may be held within or without the State of Florida.
Section 15. Time, Notice and Call of Meetings.
a. Written notice of the time and place of regular and special meetings of
the Board of Directors shall be given to each director by either personal
delivery, telegram, telephone or cablegram at least two days before the
meeting or by notice mailed to the director at least five days before the
meeting.
b. Notice of a meeting of the Board of Directors need not be given to any
director who signs a waiver of notice either before or after the meeting.
Attendance of a director at a meeting shall constitute a waiver of notice
of such meeting and waiver of any and all objections to the place of the
meeting, the time of the meeting or the manner in which it has been called
or convened, except when a director states, at the beginning of the
meeting, any objection to the transaction of business because the meeting
is not lawfully called or convened.
c. Neither the business to be transacted at nor the purpose of any regular
or special meeting of the Board of Directors need be specified in the
notice or waiver of notice of such meeting.
d. A majority of the directors present, whether or not a quorum exists, may
adjourn any meeting of the Board of Directors to another time and place.
Notice of any such adjourned meeting shall be given to the directors who
were not present at the time of the adjournment and, unless the time and
place of the adjourned meeting are announced at the time of the
adjournment, to the other directors.
e. Meetings of the Board of Directors may be called by the Chairman of the
Board, by the President of the Corporation or by any two directors.
f. Members of the Board of Directors may participate in a meeting of such
Board by means of a conference telephone or similar communications
equipment by means of which all persons participating in the meeting can
hear each other at the same time. Participation by such means shall
constitute presence in person at a meeting.
Section 16. Action Without a Meeting. Any action required to be taken at a
meeting of the directors of the Corporation or any action which may be taken at
a meeting of the directors or a committee thereof, may be taken without a
meeting if a consent in writing, setting forth the action so to be taken, signed
by all the directors or all the members of the committee, as the case may be, is
filed in the minutes of the proceedings of the Board or of the committee. Such
consent shall have the same effect as a unanimous vote.
Section 17. Resignation of Directors. Any director may resign from the Board of
Directors upon written notice being given to the President and Chairman of the
Board. The resignation is effective upon receipt of the written notice by the
President or the Chairman, except that resignations received after notice has
been given of a Board of Director's meeting shall not be effective until
subsequent to that meeting or sooner if approved by the then remaining Board
members.
Section 18. Expenses and Salaries of Directors. By resolution of the Board of
Directors, the directors may be paid their expenses, if any, of attendance at
each meeting of the Board of Directors and may be paid a fixed sum for
attendance at each meeting of the Board of Directors or a stated salary as
directors. No such payment shall preclude any director from serving the
Corporation in any other capacity and receiving compensation therefor.
ARTICLE III
OFFICERS
Section 1. Officers. The officers of this Corporation shall consist of a
President, Vice President, a Secretary and a Treasurer, each of whom shall be
elected by the Board of Directors. Such other officers and assistant officers
and agents as may be deemed necessary may be elected or appointed by the Board
of Directors from time to time. Any two or more offices may be held by the same
person. The failure to elect any of the aforesaid officers shall not effect the
existence of this Corporation.
Section 2. Duties. The officers of this Corporation shall have the following
duties:
a. The President shall be the chief executive officer of the Corporation,
shall have general and active management of the business and affairs of the
Corporation subject to the directions of the Board of Directors and shall
preside at all meetings of the stockholders and Board of Directors.
b. The Vice President shall have duties and powers incident to the specific
area of employment and shall have such other powers and duties as may be
prescribed by the President or Board of Directors. In the event of
incapacity of the President, the Vice President may be designated by the
Board of Directors to perform such duties of the President as the Board
shall prescribe.
c. The Secretary shall have custody of and maintain all of the corporate
records, except the financial records, shall record the minutes of all
meetings of the stockholders and Board of Directors, shall send all notices
of meetings out and shall perform such other duties as may be prescribed by
the Board of Directors or the President.
d. The Treasurer shall have custody of all corporate funds and financial
records, shall keep full and accurate accounts of receipts and
disbursements and render accounts thereof at the annual meetings of
stockholders and whenever else required by the Board of Directors or the
President and shall perform such other duties as may be prescribed by the
Board of Directors or the President.
Section 3. Delegation of Duties. In the case of the absence of an officer of the
Corporation or for any other reason that the Board may deem sufficient, the
Board may delegate for the time being the powers and duties of such officers to
any other officer or officers or to any director or directors or to any other
individual or individuals.
Section 4. Removal of Officers.
a. Any officer or agent elected or appointed by the Board of Directors may
be removed by the Board whenever in its judgment the best interests of the
Corporation will be served thereby.
b. Any officer or agent elected by the shareholders may be removed only by
vote of the shareholders, unless the shareholders shall have authorized the
directors to remove such officer or agent.
c. Any vacancy, however occurring, in any office may be filled by the Board
of Directors.
d. Removal, as provided in this section, shall be without prejudice to the
contract rights, if any, of the person so removed. Election or appointment
of an officer or agent shall not, in and of itself, create contract rights.
Section 5. Salary of Officers. The salaries of the officers shall be fixed from
time to time by the Board of Directors or the executive committee. No officer
shall be prevented from receiving such salary by reason of the fact that he is
also a director of the Corporation.
ARTICLE IV
STOCK CERTIFICATES
Section 1. Issuance. Every holder of shares in this Corporation shall be
entitled to have a certificate representing all shares to which he is entitled.
No certificate shall be issued for any share until such share is fully paid.
Section 2. Form.
a. Certificates representing shares in this Corporation shall be signed by
the President or Vice President and Secretary or an Assistant Secretary and
may be sealed with the seal of this Corporation or a facsimile thereof. The
signatures of the President or Vice President and Secretary or Assistant
Secretary may be facsimiles if the certificate is manually signed on behalf
of a transfer agent or a registrar, other than the Corporation itself or an
employee of the Corporation. In case any officer who signed or whose
facsimile signature has been placed upon such certificate shall have ceased
to be such officer before such certificate is issued, it may be issued by
the Corporation with the same effect as if he were such officer at the date
of its issuance.
b. Every certificate representing shares issued by this Corporation shall
set forth or fairly summarize upon the face or back of the certificate or
shall state that the Corporation will furnish to any shareholder, upon
request and without charge, a full statement of the designations,
preferences, limitations and relative rights of the shares of each class or
series authorized to be issued and the variations in the relative rights
and preferences between the shares of each series so far as the same have
been fixed and determined and the authority of the Board of Directors to
fix and determine the relative rights and preferences of subsequent series.
c. Every certificate representing shares which are restricted as to the
sale, disposition or other transfer of such shares shall state that such
shares are restricted as to transfer and shall set forth or fairly
summarize upon the certificate or shall state that the Corporation will
furnish to any shareholder, upon request and without charge, a full
statement of such restrictions.
d. Each certificate representing shares shall state upon the face thereof:
the name of the Corporation; that the Corporation is organized under the
laws of this State; the name of the person or persons to whom issued; the
number and class of shares and the designation of the series, if any, which
such certificate represents; and the par value of each share represented by
such certificate or a statement that the shares are without par value.
Section 3. Lost, Stolen or Destroyed Certificates. The Corporation shall issue a
new stock certificate in the place of any certificate previously issued if the
holder of record of the certificate
a. Makes proof in affidavit form that it has been lost, destroyed or
wrongfully taken;
b. Requests the issue of a new certificate before the Corporation has
notice that the certificate has been acquired by a purchaser for value in
good faith and without notice of any adverse claim;
c. Gives bond in such form as the Corporation may direct to indemnify the
Corporation, the transfer agent and registrar against any claim that may be
made on account of the alleged loss, destruction or theft of a certificate;
and
d. Satisfies any other reasonable requirements imposed by the Corporation.
ARTICLE V
BOOKS AND RECORDS
Section 1. Books and Records.
a. The Corporation shall keep correct and complete books and records of
account and shall keep minutes of the proceedings of its shareholders,
Board of Directors and committees of directors.
b. This Corporation shall keep at its registered office or principal place
of business or at the office of its transfer agent or registrar a record of
its shareholders, giving the names and addresses of all shareholders and
the number, class and series, if any, of the shares held by each.
c. Any books, records and minutes may be in written form or in any other
form capable of being converted into written form within a reasonable time.
Section 2. Shareholders' Inspection Rights. Any person who shall have been a
holder of record of shares or of voting certificates there for at least six
months immediately preceding his demand or shall be the holder of record of or
the holder of record of voting trust certificates for at least five percent of
the outstanding shares of any class or series of the Corporation, upon written
demand stating the purpose thereof, shall have the right to examine, in person
or by agent or attorney, at any reasonable time or times, for any proper
purpose, its relevant books and records of accounts, minutes and records of
shareholders and to make extracts therefrom.
Section 3. Financial Information.
a. Unless modified by a resolution of the stockholders not later than four
months after the close of each fiscal year, this Corporation shall prepare
a balance sheet showing in reasonable detail the financial condition of the
Corporation as of the close of its fiscal year and a profit and loss
statement showing the results of the operations of the Corporation during
its fiscal year.
b. Upon the written request of any shareholder or holder of voting trust
certificates for shares of the Corporation, the Corporation shall mail to
such shareholder or holder of voting trust certificates a copy of the most
recent such balance sheet and profit and loss statement.
c. The balance sheet and profit and loss statements shall be filed in the
registered office of the Corporation in this State, shall be kept for at
least five years and shall be subject to inspection during business hours
by any shareholder or holder of voting trust certificates, in person or by
agent.
ARTICLE VI
DIVIDENDS
The Board of Directors of this Corporation may, from time to time, declare and
the Corporation may pay dividends on its shares in cash, property or its own
shares, except when the Corporation is insolvent or when the payment thereof
would render the Corporation insolvent or when the declaration or payment
thereof would be contrary to any restrictions contained in the Articles of
Incorporation, subject to the following provisions:
a. Dividends in cash or property may be declared and paid, except as
otherwise provided in this section, only out of the unreserved and
unrestricted earned surplus of the Corporation or out of capital surplus,
howsoever arising, but each dividend paid out of capital surplus shall be
identified as a distribution of capital surplus and the amount per share
paid from such surplus shall be disclosed to the shareholders receiving the
same concurrently with the distribution.
b. Dividends may be declared and paid in the Corporation's own treasury
shares.
c. Dividends may be declared and paid in the Corporation's own authorized
but unissued shares out of any unreserved and unrestricted surplus of the
Corporation upon the following conditions:
(i) If a dividend is payable in shares having a par value, such shares
shall be issued at not less than the par value thereof and there shall
be transferred to stated capital at the time such dividend is paid an
amount of surplus equal to the aggregate par value of the shares to be
issued as a dividend.
(ii) If a dividend is payable in shares without par value, such shares
shall be issued at such stated value as shall be fixed by the Board of
Directors by resolution adopted at the time such dividend is declared
and there shall be transferred to stated capital at the time such
dividend is paid an amount of surplus equal to the aggregate stated
value so fixed in respect of such shares and the amount per share so
transferred to stated capital shall be disclosed to the shareholders
receiving such dividend concurrently with the payment thereof.
d. No dividend payable in shares of any class shall be paid to the holders
of shares of any other class unless the Articles of Incorporation so
provide or such payment is authorized by the affirmative vote or the
written consent of the holders of at least a majority of the outstanding
shares of the class in which the payment is to be made.
e. A split-up or division of the issued shares of any class into a greater
number of shares of the same class without increasing the stated capital of
the Corporation shall not be construed to be a share dividend within the
meaning of this section.
f. Dividends shall be payable only with respect to such series of Common
shares and/or Preferred Shares and subject to such restrictions as the
Board of Directors shall so designate pursuant to Article VI of the
Articles of Incorporation.
ARTICLE VII
AMENDMENT
The By-laws may be amended by a majority vote of either the Board of Directors
or the shareholders eligible to vote; provided, however, that the Board of
Directors may not amend or repeal any by-law adopted by shareholders if the
shareholders specifically provide that such by-law is not subject to amendment
or repeal by the board of directors.
ARTICLE VIII
INDEMNIFICATION
This Corporation shall indemnify any and all of its directors, officers,
employees or agents or former directors, officers, employees or agents or any
person or persons who may have served at its request as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise in which it owns shares of capital stock or of which it is a
creditor to the full extent permitted by law. Said indemnification shall include
but not be limited to the expenses, including the cost of any judgments, fines,
settlements and counsel fees, actually paid or incurred in connection with any
action, suit or proceeding, whether civil, criminal, administrative or
investigative, and any appeals thereof, to which any such person or his legal
representative may be made a party or may be threatened to be made a party by
reason of his being or having been a director, officer, employee or agent as
herein provided. The foregoing right of indemnification shall not be exclusive
of any other rights to which any director, officer, employee or agent may be
entitled as a matter of law.
