AMENDED AND RESTATED BYLAWS

 

                                       OF

 

                       UNIVERSAL INSURANCE HOLDINGS, INC.

 

                            (A DELAWARE CORPORATION)

 

 

 

 

                                  ARTICLE ONE.

 

                                     OFFICES

                                     -------

 

     Section 1.    REGISTERED   OFFICE.   The  registered  office  of  Universal

Insurance Holdings,  Inc., a Delaware corporation (the "Corporation"),  shall be

located in the City of Wilmington, State of Delaware.

 

     Section 2.    OTHER OFFICES.  The Corporation may also have offices at such

other places,  either  within or without the State of Delaware,  as the Board of

Directors of the  Corporation  (the "Board of Directors")  may from time to time

determine or as the business of the Corporation may require.

 

                                  ARTICLE TWO.

 

                            MEETINGS OF STOCKHOLDERS

                            ------------------------

 

     Section 1.    PLACE.  All annual meetings of stockholders  shall be held at

such place, within or without the State of Delaware, as may be designated by the

Board of Directors and stated in the notice of the meeting or in a duly executed

waiver of notice thereof.  Special  meetings of stockholders may be held at such

place,  within or without  the State of  Delaware,  and at such time as shall be

stated  in the  notice of the  meeting  or in a duly  executed  waiver of notice

thereof.

 

     Section 2.    ANNUAL MEETING.  The annual meeting of stockholders  shall be

held each year on a date and at a time designated by the Board of Directors. The

Board of  Directors  may, in its sole  discretion,  determine  that a meeting of

stockholders  shall not be held at any place,  but may instead be held solely by

means of remote communication as authorized by Section 211(a)(2) of the Delaware

General  Corporation Law (the "DGCL"). In the absence of any such designation or

determination,  stockholders'  meetings  shall  be  held  at  the  Corporation's

principal executive office.

 

     Section 3.    SPECIAL  MEETINGS.  A special meeting of the stockholders may

be  called  at any time by the  Board of  Directors,  the  President,  or by the

Secretary  on the written  request of the holders of not less than a majority of

all the shares entitled to vote at that meeting.

 

      If any  person(s)  other than the Board of Directors or President  calls a

special meeting, the request shall:

 

      (a)   be in writing;

 

<PAGE>

 

      (b)   specify  the time of such  meeting  and the  general  nature  of the

business proposed to be transacted; and

 

      (c)   be delivered  personally or sent by registered  mail or by facsimile

transmission  to the Chairman of the Board of  Directors,  the  President or the

Secretary of the Corporation.

 

      The  officer(s)  receiving  the request  shall cause notice to be promptly

given to the stockholders  entitled to vote at such meeting,  in accordance with

the  provisions of Section 5 and Section 6 of this Article,  that a meeting will

be held at the time requested by the person or persons  calling the meeting.  No

business may be transacted at such special  meeting  otherwise than specified in

such notice to stockholders. Nothing contained in this paragraph of this Section

3 shall be construed as limiting, fixing or affecting the time when a meeting of

stockholders called by action of the Board of Directors may be held.

 

      Section 4.  CONDUCT  OF  MEETINGS.  The  Chairman  of the Board (or in his

absence,  the  President  or such other  designee of the  Chairman of the Board)

shall preside at the annual and special  meetings of  stockholders  and shall be

given full discretion in establishing the rules and procedures to be followed in

conducting the meetings, except as otherwise provided by law or in these Bylaws.

 

      Section 5.  NOTICE OF STOCKHOLDERS'  MEETINGS.  All notices of meetings of

stockholders  shall be sent or otherwise  given in accordance  with Section 6 of

this Article or Section 1 of Article  Seven not less than ten (10) nor more than

sixty (60) days before the date of the meeting to each  stockholder  entitled to

vote at such meeting.  The notice shall specify the place, if any, date and hour

of the meeting, the means of remote communication, if any, by which stockholders

and  proxy  holders  may be  deemed to be  present  in  person  and vote at such

meeting,  and, in the case of a special  meeting,  the  purpose or purposes  for

which the meeting is called.

 

      Section 6.   MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE.

 

      Notice of any meeting of stockholders shall be given:

 

      (a)   if  mailed,  when  deposited  in the  United  States  mail,  postage

prepaid,  directed to the stockholder at his or her address as it appears on the

Corporation's records; or

 

      (b)   if  electronically  transmitted  as provided in Section 1 of Article

Seven.

 

      An affidavit of the Secretary or an Assistant Secretary of the Corporation

or of the transfer agent or any other agent of the  Corporation  that the notice

has been given by mail, or by a form of electronic transmission,  as applicable,

shall,  in the  absence of fraud,  be prima facie  evidence of the facts  stated

therein.

 

      Section 7.   BUSINESS  OF  SPECIAL  MEETING.  Business  transacted  at any

special meeting shall be confined to the purposes stated in the notice thereof.

 

      Section 8.   QUORUM.  The holders of a majority of the shares  entitled to

vote,  represented in person or by proxy,  shall constitute a quorum at meetings

of stockholders except as otherwise provided in the Corporation's certificate of

 

 

                                      -2-

 

<PAGE>

 

incorporation (the "Certificate of Incorporation").  If, however, a quorum shall

not  be  present  or  represented  at  any  meeting  of  the  stockholders,  the

stockholders  present in person or  represented by proxy shall have the power to

adjourn the meeting from time to time, without notice other than announcement at

the meeting,  until a quorum shall be present or represented.  The  stockholders

present  at  a  duly  organized   meeting  may  continue  to  transact  business

notwithstanding the withdrawal of some stockholders prior to adjournment, but in

no event shall a quorum consist of the holders of less than  one-third  (1/3) of

the shares entitled to vote and thus represented at such meeting.

 

      Section 9.   ADJOURNED  MEETING;  NOTICE.  When a meeting is  adjourned to

another time or place, unless these Bylaws otherwise require, notice need not be

given of the adjourned  meeting if the time and place,  if any thereof,  and the

means of remote communications,  if any, by which stockholders and proxy holders

may be deemed to be  present in person and vote at such  adjourned  meeting  are

announced at the meeting at which the adjournment is taken. At the  continuation

of the adjourned meeting at which a quorum shall be present or represented,  the

Corporation  may transact any business  that might have been  transacted  at the

original  meeting.  If the  adjournment is for more than thirty (30) days, or if

after the  adjournment a new record date is fixed for the adjourned  meeting,  a

notice of the  adjourned  meeting shall be given to each  stockholder  of record

entitled to vote at the meeting.

 

      Section 10.  VOTING  OF  SHARES.  Except  as  otherwise  provided  in  the

Certificate of  Incorporation or these Bylaws, a plurality of the votes entitled

to vote and represented at a meeting of stockholders  duly called and at which a

quorum is present shall be  sufficient to elect a director.  With respect to any

other  matter  which may  properly  come before a meeting,  except as  otherwise

provided  by law or in the  Certificate  of  Incorporation  or these  Bylaws,  a

majority  of the  votes  entitled  to  vote  and  represented  at a  meeting  of

stockholders duly called and at which a quorum is present shall be sufficient to

take or authorize action upon such other matter. Except as otherwise provided in

the Certificate of  Incorporation  or these Bylaws,  each  stockholder  shall be

entitled to one vote for each share of capital stock held by such stockholder.

 

      Section 11.  PROXIES.  Each  stockholder  entitled to vote at a meeting of

stockholders  or to express  consent or dissent to  corporate  action in writing

without a meeting  may  authorize  another  person  or  persons  to act for such

stockholder by proxy authorized by an instrument in writing or by a transmission

permitted by law filed in  accordance  with the  procedure  established  for the

meeting, but no such proxy shall be voted or acted upon after eleven (11) months

from its date,  unless the proxy provides for a longer period.  The revocability

of a proxy that states on its face that it is  irrevocable  shall be governed by

the provisions of Section 212 of the DGCL.

 

      Section 12.  STOCKHOLDER  LIST.  The  officer  who has charge of the stock

ledger of the Corporation  shall prepare and make, at least ten (10) days before

every meeting of stockholders,  a complete list of the stockholders  entitled to

vote at the meeting,  arranged in alphabetical order, and showing the address of

each  stockholder  and the  number  of  shares  registered  in the  name of each

stockholder.  The Corporation  shall not be required to include  electronic mail

addresses or other electronic contact  information on such list. Such list shall

be open to examination by any stockholder for any purpose germane to the meeting

for a period of at least ten (10) days prior to the meeting (a) on a  reasonably

accessible  electronic network,  provided that the information  required to gain

access to such list is provided  with the notice of the  meeting,  or (b) during

 

                                      -3-

<PAGE>

 

ordinary business hours, at the Corporation's principal executive office. In the

event  that  the  Corporation  determines  to  make  the  list  available  on an

electronic  network,  the Corporation  may take reasonable  steps to ensure that

such  information is available only to stockholders of the  Corporation.  If the

meeting is to be held at a place,  then the list shall be  produced  and kept at

the time and place of the  meeting  during  the whole  time  thereof  and may be

inspected by any stockholder who is present. If the meeting is to be held solely

by means of remote communications, then the list shall be open to examination by

any stockholder during the whole time of the meeting on a reasonably  accessible

electronic  network,  and the information  required to access such list shall be

provided with the notice of the meeting. Such list shall presumptively determine

the identity of the stockholders  entitled to vote at the meeting and the number

of shares held by each of them.

 

      Section 13.  ACTION WITHOUT MEETING. Any action required by the DGCL to be

taken at a meeting of stockholders, or any action that may be taken at a meeting

of the stockholders,  may be taken without a meeting or notice if a consent,  or

consents, 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 with respect to the

subject matter  thereof,  and such consent shall be delivered to the Corporation

by delivery to its registered  office,  its principal  place of business,  or an

officer  or  agent  of the  Corporation,  having  custody  of the  book in which

proceedings  of meetings of  stockholders  are  recorded.  Delivery  made to the

Corporation's  registered  office  shall be by hand or  certified  mail,  return

receipt  requested.  Such consent shall have the same force and effect as a vote

of stockholders taken at such a meeting.

 

      Section 14.  FIXING  RECORD  DATE.  In  order  that  the  Corporation  may

determine  the  stockholders  entitled to notice of or to vote at any meeting of

stockholders or any adjournment  thereof,  or entitled to receive payment of any

dividend  or other  distribution  or  allotment  of any  rights,  or entitled to

exercise any rights in respect of any change, conversion or exchange of stock or

for the purpose of any other lawful  action,  the Board of Directors may fix, in

advance,  a record  date,  which record date shall not precede the date on which

the  resolution  fixing the record  date is adopted  and which shall not be more

than sixty (60) nor less than ten (10) days before the date of such meeting, nor

more than sixty (60) days prior to any other such action.

 

      If the Board of Directors does not so fix a record date:

 

      (a)   The record date for determining  stockholders  entitled to notice of

or to vote at a meeting of stockholders shall be at the close of business on the

day next preceding the day on which notice is given, or, if notice is waived, at

the close of business on the day next  preceding the day on which the meeting is

held.

 

      (b)   The record  date for  determining  stockholders  entitled to express

consent to corporate  action in writing without a meeting,  when no prior action

by the  Board of  Directors  is  necessary,  shall be the day on which the first

written consent is expressed.

 

      (c)   The record date for determining  stockholders  for any other purpose

shall be at the close of  business  on the day on which  the Board of  Directors

adopts the resolution relating thereto.

 

                                      -4-

<PAGE>

 

      A determination of stockholders of record entitled to notice of or to vote

at a meeting of  stockholders  shall apply to any  adjournment  of the  meeting;

provided, however, that the Board of Directors may fix a new record date for the

adjourned meeting.

 

      Section 15.  INSPECTORS  AND JUDGES.  The Board of Directors in advance of

any meeting may,  but need not,  appoint one or more  inspectors  of election or

judges of the vote, as the case may be, to act at the meeting or any adjournment

thereof. If any inspector or inspectors,  or judge or judges, are not appointed,

the person  presiding  at the  meeting  may,  but need not,  appoint one or more

inspectors or judges. In case any person who may be appointed as an inspector or

judge  fails to  appear  or act,  the  vacancy  may be  filled  by the  Board of

Directors in advance of the meeting,  or at the meeting by the person  presiding

thereat.  The inspectors or judges, if any, shall determine the number of shares

of  stock  outstanding  and the  voting  power  of  each,  the  shares  of stock

represented at the meeting,  the existence of a quorum,  the validity and effect

of proxies,  and shall receive votes,  ballots and consents,  hear and determine

all challenges and questions arising in connection with the right to vote, count

and tabulate votes, ballots and consents, determine the result, and do such acts

as are proper to conduct the election or vote with fairness to all stockholders.

On request of the person  presiding at the meeting,  the inspector or inspectors

or judge or judges,  if any,  shall  make a report in writing of any  challenge,

question or matter  determined by him or them,  and execute a certificate of any

fact found by him or them.

 

                                 ARTICLE THREE

 

                                    DIRECTORS

                                    ---------

 

      Section 1.   NUMBER,  ELECTION  AND TERM.  The number of  directors of the

Corporation shall be fixed from time to time, within the limits specified by the

Certificate of Incorporation, by resolution of the Board of Directors; provided,

however,  no  director's  term  shall be  shortened  by reason  of a  resolution

reducing the number of directors.  The directors  shall be elected at the annual

meeting of the  stockholders,  except as provided in Section 2 of this  Article,

and each director elected shall hold office for the term for which he is elected

and  until  his  successor  is  elected  and  qualified.  Directors  need not be

residents of the State of Delaware,  stockholders of the Corporation or citizens

of the United  States.  Unless  provided  otherwise  by law, any director may be

removed at any time,  with or without cause, by the holders of a majority of the

shares then entitled to vote at an election of directors.

 

      The directors of the  Corporation  need not be elected by written  ballot,

unless otherwise provided in the Certificate of Incorporation.  If authorized by

the Board of Directors,  any  requirement of a written ballot shall be satisfied

by a  ballot  submitted  by  electronic  transmission,  provided  that  any such

electronic   transmission  must  be  either  set  forth  or  be  submitted  with

information from which it can be determined that the electronic transmission was

authorized by the stockholder or proxy holder.

 

      Section 2.   RESIGNATION  AND  VACANCIES.  Any  director may resign at any

time  upon  notice  given  in  writing  or by  electronic  transmission  to  the

Corporation.  Unless  otherwise  provided in the Certificate of Incorporation or

these  Bylaws,  when one or more  directors  so resigns and the  resignation  is

 

 

                                      -5-

<PAGE>

 

effective  at a  future  date,  a  majority  of the  directors  then in  office,

including those who have so resigned,  shall have the power to fill such vacancy

or  vacancies,  the  vote  thereon  to take  effect  when  such  resignation  or

resignations  shall  become  effective,  and each  director so chosen shall hold

office as provided in this Section 2 in the filling of other vacancies.

 

      Unless  otherwise  provided in the Certificate of  Incorporation  or these

Bylaws:

 

      (a)   Vacancies  and  newly  created  directorships   resulting  from  any

increase  in  the  authorized   number  of  directors  elected  by  all  of  the

stockholders  having  the  right to vote as a single  class  may be  filled by a

majority of the directors then in office,  although less than a quorum,  or by a

sole remaining director.

 

      (b)   Whenever  the  holders of any class or classes of stock or series or

subset of a series  thereof are  entitled to elect one or more  directors by the

provisions  of the  Certificate  of  Incorporation,  vacancies and newly created

directorships  of such  class or  classes or series or subset of a series may be

filled by a majority of the directors elected by such class or classes or series

or subset of a series thereof then in office, or by a sole remaining director so

elected.

 

      If at any time,  by reason of death or  resignation  or other  cause,  the

Corporation  should  have no  directors  in  office,  then  any  officer  or any

stockholder or an executor, administrator, trustee or guardian of a stockholder,

or other fiduciary  entrusted with like  responsibility for the person or estate

of a stockholder,  may call a special meeting of stockholders in accordance with

the provisions of the Certificate of Incorporation or these Bylaws, or may apply

to the Court of Chancery for a decree summarily ordering an election as provided

in Section 211 of the DGCL.

 

      Section 3.   POWERS.  The business and affairs of the Corporation shall be

managed by its Board of  Directors,  which may  exercise  all such powers of the

Corporation  and do all such  lawful acts and things as are not by law or by the

Certificate  of  Incorporation  or by these  Bylaws  directed  or required to be

exercised and done by the stockholders.

 

      Section 4.   PLACE  OF  MEETINGS.  Meetings  of the  Board  of  Directors,

regular or special,  may be held either within or without the State of Delaware.

Unless otherwise restricted by the Certificate of Incorporation or these Bylaws,

members of the Board of Directors,  or any committee  designated by the Board of

Directors,  may  participate  in a  meeting  of the Board of  Directors,  or any

committee, by means of conference telephone or other communications equipment by

means of which all persons participating in the meeting can hear each other, and

such  participation  in a meeting  shall  constitute  presence  in person at the

meeting.

 

      Section 5.   REGULAR MEETINGS.  Regular meetings of the Board of Directors

may also be held  without  notice at such time and at such  place as shall  from

time to time be determined by the Board of Directors.

 

      Section 6.   SPECIAL MEETINGS AND NOTICE. Special meetings of the Board of

Directors  for any purpose or purposes may be called at any time by the Chairman

of the Board of  Directors,  the  President,  or by the Secretary on the written

request of any two directors.

 

      Notice of the time and place of special meetings shall be:

 

 

                                      -6-

<PAGE>

 

      (a)   delivered personally by hand, by courier or by telephone;

 

      (b)   sent by United States first-class mail, postage prepaid;

 

      (c)   sent by facsimile; or

 

      (d)   sent by electronic mail

 

directed  to  each  director  at  that  director's  address,  telephone  number,

facsimile number or electronic mail address, as the case may be, as shown on the

Corporation's records.

 

      If the  notice is (a)  delivered  personally  by hand,  by  courier  or by

telephone,  (b) sent by facsimile,  or (c) sent by electronic  mail, it shall be

delivered or sent at least twenty-four (24) hours before the time of the holding

of the  meeting.  If the  notice  is sent by  United  States  mail,  it shall be

deposited  in the United  States  mail at least four (4) days before the time of

the holding of the meeting. Any oral notice may be communicated to the director.

The notice  need not  specify  the place of the meeting (if the meeting is to be

held at the  Corporation's  principal  executive  office) nor the purpose of the

meeting.

 

      Section 7.   QUORUM AND REQUIRED  VOTE. A majority of the directors  shall

constitute a quorum for the  transaction of business and 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,  unless a  greater  number  is  required  by the

Certificate of Incorporation. If a quorum shall not be present at any meeting of

the Board of Directors,  the directors  present  thereat may adjourn the meeting

from time to time, without notice other than announcement at the meeting,  until

a quorum shall be present.  At such adjourned meeting at which a quorum shall be

present,  any business may be transacted  that might have been transacted at the

meeting  as  originally  notified  and  called.  A meeting  at which a quorum is

initially  present  may  continue  to  transact  business   notwithstanding  the

withdrawal of directors,  if any action taken is approved by at least a majority

of the required quorum for that meeting.

 

      Section 8.   ACTION WITHOUT MEETING.  Unless  otherwise  restricted by the

Certificate of Incorporation  or these Bylaws,  any action required or permitted

to be taken  at any  meeting  of the  Board of  Directors,  or of any  committee

thereof, may be taken without a meeting if all members of the Board of Directors

or committee,  as the case may be,  consent  thereto in writing or by electronic

transmission  and  the  writing  or  writings  or  electronic   transmission  or

transmissions  are  filed  with  the  minutes  of  proceedings  of the  Board of

Directors  or  committee.  Such filing shall be in paper form if the minutes are

maintained  in paper form and shall be in  electronic  form if the  minutes  are

maintained in electronic form.

 

      Section 9.   TELEPHONE  MEETINGS.  Directors  and  committee  members  may

participate  in and hold a meeting by means of  conference  telephone or similar

communication  equipment  by means of which  all  persons  participating  in the

meeting can hear each other.  Participation  in such a meeting shall  constitute

presence in person at the  meeting,  except where a person  participates  in the

meeting for the express  purpose of objecting to the transaction of any business

on the ground the meeting is not lawfully called or convened.

 

                                      -7-

 

<PAGE>

 

      Section 10.  COMMITTEES.  The Board of Directors may designate one or more

committees,  each  committee  to consist of one or more of the  directors of the

Corporation.  The Board of  Directors  may  designate  one or more  directors as

alternate  members of any committee,  who may replace any absent or disqualified

member at any meeting of the committee.  In the absence or disqualification of a

member of a committee,  the member or members thereof present at any meeting and

not disqualified from voting, whether or not such member or members constitute a

quorum, may unanimously  appoint another member of the Board of Directors to act

at the meeting in the place of any such absent or disqualified  member. Any such

committee, to the extent provided in the resolution of the Board of Directors or

in these Bylaws, shall have and may exercise all the powers and authority of the

Board  of  Directors  in the  management  of the  business  and  affairs  of the

Corporation,  and may authorize the seal of the Corporation to be affixed to all

papers  that may  require  it,  but no such  committee  shall  have the power or

authority to (a) approve or adopt, or recommend to the stockholders,  any action

or matter  expressly  required by the DGCL to be submitted to  stockholders  for

approval,  or (b)  adopt,  amend or repeal  any Bylaw of the  Corporation.  Each

committee  shall keep regular minutes of its meetings and report the same to the

Board of Directors when required.

 

      Section 11.  COMPENSATION  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 director. No such payment shall preclude any director from

serving  the  Corporation  in any  other  capacity  and  receiving  compensation

therefor.  Members  of  special  or  standing  committees  may be  allowed  like

compensation for attending committee meetings.

 

      Section 12.  CHAIRMAN  OF THE BOARD.  The Board of  Directors  may, in its

discretion,  choose a Chairman of the Board who shall preside at meetings of the

stockholders  and of the  directors  and  shall be an ex  officio  member of all

standing committees.  The Chairman of the Board shall have such other powers and

shall  perform  such  other  duties  as  shall  be  designated  by the  Board of

Directors. The Chairman of the Board shall be a member of the Board of Directors

but no other officers of the Corporation need be a director. The Chairman of the

Board shall serve until his  successor  is chosen and  qualified,  but he may be

removed  at any  time by the  affirmative  vote of a  majority  of the  Board of

Directors.

 

                                  ARTICLE FOUR

 

                                    OFFICERS

                                    --------

 

      Section 1.   POSITIONS. The officers of the Corporation shall consist of a

President,  one or more Vice  Presidents,  a Secretary and a Treasurer,  and, if

elected by the Board of Directors by  resolution,  a Chairman of the Board.  Any

two or more offices may be held by the same person.

 

      Section 2.   ELECTION  OF  SPECIFIED  OFFICERS  BY  BOARD.  The  Board  of

Directors at its first meeting after each annual meeting of  stockholders  shall

elect a President, one or more Vice Presidents, a Secretary and a Treasurer.

 

 

                                      -8-

 

<PAGE>

 

      Section 3.   ELECTION  OR  APPOINTMENT  OF  OTHER  OFFICERS.   Such  other

officers and  assistant  officers and agents as may be deemed  necessary  may be

elected or appointed by the Board of Directors,  or, unless otherwise  specified

herein,  appointed by the President of the  Corporation.  The Board of Directors

shall  be  advised  of  appointments  by the  President  at or  before  the next

scheduled Board of Directors meeting.

 

      Section 4.   SALARIES.  The salaries of all officers of the Corporation to

be elected by the Board of Directors  pursuant to Article Four, Section 2 hereof

shall be fixed from time to time by the Board of  Directors  or  pursuant to its

discretion.  The  salaries  of all other  elected or  appointed  officers of the

Corporation shall be fixed from time to time by the President of the Corporation

or pursuant to his direction.

 

      Section 5.   TERM. The officers of the Corporation shall hold office until

their  successors  are chosen and  qualified.  Any  officer or agent  elected or

appointed by the Board of Directors or the President of the  Corporation  may be

removed,  with or  without  cause,  by the Board of  Directors  whenever  in its

judgment the best interests of the Corporation will be served thereby,  but such

removal shall be without prejudice to the contract rights, if any, of the person

so removed. Any officers or agents appointed by the President of the Corporation

pursuant to Section 3 of this Article Four may also be removed from such officer

positions by the President,  with or without cause. Any vacancy occurring in any

office of the Corporation by death,  resignation,  removal or otherwise shall be

filled by the Board of Directors, or, in the case of an officer appointed by the

President of the Corporation, by the President or the Board of Directors.

 

      Section 6.   PRESIDENT. The President shall be the Chief Executive Officer

of the Corporation,  shall have general and active management of the business of

the  Corporation  and shall see that all orders and  resolutions of the Board of

Directors  are carried into effect.  In the absence of the Chairman of the Board

or in the event the Board of Directors  shall not have  designated a chairman of

the board,  the President shall preside at meetings of the  stockholders and the

Board of Directors.

 

      Section 7.   VICE  PRESIDENTS.  The Vice  Presidents in the order of their

seniority,  unless otherwise determined by the Board of Directors, shall, in the

absence or  disability  of the  President,  perform the duties and  exercise the

powers of the  President.  They shall  perform  such other  duties and have such

other powers as the Board of Directors  shall  prescribe or as the President may

from time to time delegate.

 

      Section 8.   SECRETARY.  The  Secretary  shall  attend all meetings of the

Board of  Directors  and all  meetings  of the  stockholders  and record all the

proceedings of the meetings of the stockholders and of the Board of Directors in

a book to be kept for  that  purpose  and  shall  perform  like  duties  for the

standing  committees when required.  He shall give, or cause to be given, notice

of all  meetings  of the  stockholders  and  special  meetings  of the  Board of

Directors, and shall perform such other duties as may be prescribed by the Board

of Directors or President, under whose supervision he shall be. He shall keep in

safe custody the seal of the  Corporation  and, when  authorized by the Board of

Directors, affix the same to any instrument requiring it.

 

      Section 9.   TREASURER.  The Treasurer shall have the custody of corporate

funds and securities  and shall keep full and accurate  accounts of receipts and

 

 

                                      -9-

 

<PAGE>

 

disbursements in books belonging to the Corporation and shall deposit all moneys

and other valuable  effects in the name and to the credit of the  Corporation in

such  depositories  as may be  designated  by the Board of  Directors.  He shall

disburse  the  funds  of the  Corporation  as may be  ordered  by the  Board  of

Directors,  taking proper vouchers for such  disbursements,  and shall render to

the  President  and the Board of Directors  at its regular  meetings or when the

Board of Directors so requires an account of all his  transactions  as Treasurer

and of the financial condition of the Corporation.

 

      Section 10.  AUTHORITY AND DUTY OF OFFICERS.  In addition to the foregoing

authority and duties,  all officers of the Corporation  shall  respectively have

such  authority and perform such duties in the management of the business of the

Corporation as may be designated from time to time by the Board of Directors.

 

                                  ARTICLE FIVE

 

                             CERTIFICATES FOR SHARES

                             -----------------------

 

      Section 1.   ISSUE OF CERTIFICATES. The shares of the Corporation shall be

represented  by  certificates,  provided  that  the  Board of  Directors  of the

Corporation may provide by resolution or resolutions  that some or all of any or

all  classes or series of its stock  shall be  uncertificated  shares.  Any such

resolution  shall not apply to shares  represented  by a certificate  until such

certificate is surrendered to the Corporation.  Notwithstanding  the adoption of

such a resolution by the Board of Directors,  every holder of stock  represented

by certificates (and upon request every holder of  uncertificated  shares) shall

be entitled to have a certificate  signed by, or in the name of the  Corporation

by the Chairman or Vice-Chairman of the Board of Directors,  or the President or

Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary

or an Assistant Secretary of the Corporation,  representing the number of shares

registered in certificate form.

 

      Section 2.   FACSIMILE   SIGNATURES.   Any  and  all   signatures  on  the

certificate may be a facsimile. In case any officer, transfer agent or registrar

who  has  signed  or  whose  facsimile  signature  has  been  placed  upon  such

certificate  shall have ceased to be such officer,  transfer  agent or registrar

before such certificate is issued,  it may be issued by the Corporation with the

same effect as if he were such officer,  transfer agent or registrar at the date

of the issue.

 

      Section 3.   LOST   CERTIFICATES.   The   Corporation   may  issue  a  new

certificate of stock in place of any certificate  therefor issued by it, alleged

to have been lost,  stolen or  destroyed,  and the  Corporation  may require the

owner of the lost, stolen, or destroyed certificate, or his legal representative

to give the Corporation a bond sufficient to indemnify it against any claim that

may be made against it on account of the alleged loss,  theft or  destruction of

any such certificate or the issuance of such new certificate.

 

      Section 4.   TRANSFER OF SHARES.  Upon surrender to the Corporation or the

transfer agent of the  Corporation of a certificate  for shares duly endorsed or

accompanied  by proper  evidence  of  succession,  assignment  or  authority  to

transfer,  it shall be the duty of the Corporation to issue a new certificate to

the  person  entitled  thereto,  cancel  the  old  certificate  and  record  the

transaction upon its books.

 

                                      -10-

 

<PAGE>

 

      Section 5.   REGISTERED STOCKHOLDERS. The Corporation shall be entitled to

recognize the exclusive rights of a person  registered on its books as the owner

of shares to  receive  dividends,  and to vote as such  owner,  and shall not be

bound to recognize  any equitable or other claim to or interest in such share or

shares on the part of any other person,  whether or not it shall have express or

other notice thereof,  except as otherwise  provided by the laws of the State of

Delaware.

 

                                  ARTICLE SIX

 

                               GENERAL PROVISIONS

                               ------------------

 

      Section 1.   DIVIDENDS.  The  Board of  Directors  may  from  time to time

declare,  and the  Corporation may pay,  dividends on its outstanding  shares in

cash,  property,  or its own  shares  pursuant  to the DGCL and  subject  to the

provisions of the Certificate of Incorporation.

 

      Section 2.   RESERVES.  The Board of Directors may by resolution  create a

reserve or reserves  out of earned  surplus for any proper  purpose or purposes,

and may abolish any such reserve in the same manner.

 

      Section 3.   CHECKS.  All  checks  or  demands  for money and notes of the

Corporation  shall be signed by such officer or officers or such other person or

persons as the Board of Directors may from time to time designate.

 

      Section 4.   EXECUTION OF CORPORATE  CONTRACTS AND INSTRUMENTS.  The Board

of Directors,  except as otherwise  provided in these Bylaws,  may authorize any

officer or officers,  or agent or agents,  to enter into any contract or execute

any instrument in the name of and on behalf of the  Corporation.  Such authority

may be general or  confined  to  specific  instances.  Unless so  authorized  or

ratified by the Board of Directors or within the agency power of an officer,  no

officer,  agent or  employee  shall  have any  power  or  authority  to bind the

Corporation  by any contract or  engagement or to pledge its credit or to render

it liable for any purpose or for any amount.

 

      Section 5.   FISCAL YEAR. The fiscal year of the Corporation  shall end on

December 31 of each year,  unless  otherwise fixed by resolution of the Board of

Directors.

 

      Section 6.   SEAL.  The corporate  seal shall have  inscribed  thereon the

name and  state of  incorporation  of the  Corporation.  The seal may be used by

causing it or a  facsimile  thereof to be  impressed  or affixed or in any other

manner reproduced.

 

      Section 7.   WAIVER OF NOTICE.  Whenever  notice is  required  to be given

under any  provision of the DGCL,  the  Certificate  of  Incorporation  or these

Bylaws, a written waiver,  signed by the person entitled to notice,  or a waiver

by electronic  transmission by the person entitled to notice,  whether before or

after the time of the event  for  which  notice is to be given,  shall be deemed

equivalent to notice.  Attendance  of a person at a meeting  shall  constitute a

waiver of notice of such meeting,  except when the person  attends a meeting for

the  express  purpose  of  objecting  at the  beginning  of the  meeting  to the

transaction  of any  business  because  the  meeting is not  lawfully  called or

convened.  Neither  the  business to be  transacted  at, nor the purpose of, any

 

 

                                      -11-

 

<PAGE>

 

regular or special meeting of the stockholders  need be specified in any written

waiver of notice or any waiver by electronic  transmission unless so required by

the Certificate of Incorporation or these Bylaws.

 

                                 ARTICLE SEVEN

 

                        NOTICE BY ELECTRONIC TRANSMISSION

                        ---------------------------------

 

      Section 1.   NOTICE  BY  ELECTRONIC  TRANSMISSION.  Without  limiting  the

manner  by which  notice  otherwise  may be given  effectively  to  stockholders

pursuant to the DGCL, the  Certificate  of  Incorporation  or these Bylaws,  any

notice to stockholders given by the Corporation under any provision of the DGCL,

the Certificate of  Incorporation or these Bylaws shall be effective if given by

a form of electronic  transmission  consented to by the  stockholder to whom the

notice is given.  Any such  consent  shall be revocable  by the  stockholder  by

written notice to the Corporation. Any such consent shall be deemed revoked if:

 

      (a)   the Corporation is unable to deliver by electronic  transmission two

consecutive  notices given by the  Corporation in accordance  with such consent;

and

 

      (b)   such  inability  becomes  known  to the  Secretary  or an  Assistant

Secretary  of  the  Corporation  or to  the  transfer  agent,  or  other  person

responsible for the giving of notice.

 

      However,  the inadvertent  failure to treat such inability as a revocation

shall not invalidate any meeting or other action.

 

      Any notice  given  pursuant  to the  preceding  paragraph  shall be deemed

given:

 

      (a)   if by  facsimile  telecommunication,  when  directed  to a number at

which the stockholder has consented to receive notice;

 

      (b)   if by electronic  mail,  when directed to an electronic mail address

at which the stockholder has consented to receive notice;

 

      (c)   if by a posting on an  electronic  network  together  with  separate

notice to the stockholder of such specific  posting,  upon the later of (i) such

posting, and (ii) the giving of such separate notice; and

 

      (d)   f by any other form of  electronic  transmission,  when directed to

the stockholder.

 

      An affidavit of the Secretary or an Assistant Secretary or of the transfer

agent or other agent of the Corporation that the notice has been given by a form

of  electronic  transmission  shall,  in the  absence of fraud,  be prima  facie

evidence of the facts stated therein

 

      Section 2.   DEFINITION  OF  ELECTRONIC   TRANSMISSION.   An   "electronic

transmission"  means  any form of  communication,  not  directly  involving  the

physical  transmission  of paper,  that  creates a record that may be  retained,

retrieved  and  reviewed  by a  recipient  thereof,  and  that  may be  directly

reproduced in paper form by such a recipient through an automated process.

 

                                      -12-

 

<PAGE>

 

      Section 3.   INAPPLICABILITY.  Notice by a form of electronic transmission

shall not apply to Section 164, Section 296, Section 311, Section 312 or Section

324 of the DGCL.

 

                                 ARTICLE EIGHT

 

                              AMENDMENTS OF BYLAWS

                              --------------------

 

      These  Bylaws may be  altered,  amended or  repealed  or new Bylaws may be

adopted at any meeting of the Board of  Directors  at which a quorum is present,

by the affirmative vote of a majority of the directors present at such meeting.

 

                                      -13-

<PAGE>

 

                           CERTIFICATE OF ADOPTION OF

 

                         AMENDED AND RESTATED BYLAWS OF

 

                       UNIVERSAL INSURANCE HOLDINGS, INC.

 

 

 

      The undersigned  hereby  certifies that he is the duly elected,  qualified

and  acting  Secretary  of  Universal  Insurance  Holdings,  Inc.  and  that the

foregoing Amended and Restated Bylaws,  comprising 13 pages, were adopted as the

Bylaws of the  Corporation  on January 8, 2007, by the Board of Directors of the

Corporation.

 

      IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 8th day

of January, 2007.

 

 

 

                                          /s/ Norman M. Meier

                                          ------------------------------

                                          Norman M. Meier

[End]