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.
 

 

 
                              ARTICLES OF AMENDMENT
                                       TO
                              AMENDED AND RESTATED
                            ARTICLES OF INCORPORATION
                                       OF
                            BFC FINANCIAL CORPORATION
 
The Amended and Restated Articles of Incorporation of BFC FINANCIAL CORPORATION,
a Florida  corporation (the  "Corporation"),  are hereby amended pursuant to the
provisions  of Section  607.1006  of the  Florida  Business  Corporation  Act as
follows:
 
1.   Section 3 of Article V shall be deleted in its entirety and amended to read
     as follows:
 
     Section  3.  Voting.  Except  as  provided  in  this  Article  V (or in any
     supplementary  sections  thereto),  all rights to vote and all voting power
     (including,  without  limitation,  the right to elect  directors)  shall be
     vested  exclusively  in the holders of Class A Common Stock and the holders
     of Class B Common Stock, voting together without regard to class.
 
     (a)  Class  A  Common  Stock.  On  all  matters  presented  for a  vote  of
          shareholders, holders of Class A Common Stock shall be entitled to one
          vote for each share held. Until the total number of outstanding shares
          of Class B Common  Stock shall first fall below  1,800,000  shares (an
          "Initial  Trigger  Event"),  the Class A Common Stock shall possess in
          the aggregate  22.0% of the total voting power of the Common Stock (as
          adjusted pursuant to clause (ii) of subparagraph (b) below, the "Class
          A Percentage").
 
     (b)  Class B  Common  Stock.
 
          (i)  On all matters  presented for a vote of shareholders,  holders of
               Class B Common  Stock  shall  be  entitled  to a number  of votes
               (which may be or include a fraction  of a vote) for each share of
               Class B Common  Stock  held  equal  to the  quotient  derived  by
               dividing  (1) the number  equal to (x) the total number of shares
               of Class A Common Stock  outstanding on the relevant  record date
               divided by the Class A  Percentage  less (y) the total  number of
               shares of Class A Common Stock outstanding on such record date by
               (2)  the  total   number  of  shares  of  Class  B  Common  Stock
               outstanding on such record date.
 
          (ii) Until the  occurrence  of an  Initial  Trigger  Event the Class B
               Common Stock shall  possess in the  aggregate  78.0% of the total
               voting power of the Common Stock (as adjusted  pursuant to clause
               (ii)  below,  the  "Class  B  Percentage").  From and  after  the
               occurrence of an Initial  Trigger  Event,  the Class A Percentage
               shall be increased and the Class B Percentage  shall be decreased
               based on the number of shares of Class B Common Stock then issued
               and outstanding as follows:
 
               (1)  if on the  record  date for any  matter to be voted upon the
                    number of outstanding shares of Class B Common Stock is less
                    than  1,800,000 but greater than  1,400,000 then the Class A
                    Percentage  shall thereafter be equal to 40.0% and the Class
                    B Percentage  shall  thereafter  be equal to 60.0%,  in each
                    case until further adjusted in accordance herewith; and
 
               (2)  if on the  record  date for any  matter to be voted upon the
                    number of outstanding shares of Class B Common Stock is less
                    than 1,400,000 then the Class A Percentage  shall thereafter
                    be  equal  to  53.0%  and  the  Class  B  Percentage   shall
                    thereafter be equal to 47.0%.
 
          (iii)Notwithstanding  the  foregoing  nor anything  else herein to the
               contrary:  (1)  at no  time  shall  the  Class  B  Percentage  be
               increased  or the  Class A  Percentage  reduced  as a result of a
               change  in  the  number  of  shares  of  Class  B  Common   Stock
               outstanding  other than through the operation of subparagraph (e)
               below, and (2) the Class A Percentage shall never be greater than
               53.0% and Class B Percentage shall never be less than 47.0%.
<PAGE>
 
          (c)  Cumulative Voting.  There shall be no cumulation of votes for the
               election of directors.
 
          (d)  Class  Vote by Class B Common  Stock.  Notwithstanding  any other
               provision of this Article V, the  Corporation  shall not take any
               of the  following  actions  without the  affirmative  vote of the
               holders of a majority of the outstanding shares of Class B Common
               Stock,  given  separately  as a  class,  which  vote  shall be in
               addition  to any right to vote  required by the laws of the State
               of  Florida:  (i) issue any  additional  shares of Class B Common
               Stock, except (1) pursuant to a stock dividend issued exclusively
               to the holders of Class B Common  Stock (2) pursuant to the terms
               of any  securities  outstanding  on the date  hereof  that are by
               there terms  convertible  into or exchangeable or exercisable for
               shares of Class B Common  Stock or (3)  pursuant  to the terms of
               any class or series of  securities  established  and issued after
               the date hereof  pursuant the  "Preferred  Stock"  provisions  of
               Article  IV  hereof,   or  (4)  pursuant  to  any  stock  options
               exercisable  for shares of Class B Common  Stock issued under the
               terms of any stock option plan of the Corporation existing on the
               date hereof or established  after the date hereof and approved by
               the  holders of a  majority  of the then  issued and  outstanding
               shares of Class B Common Stock;  (ii) effect any reduction in the
               number of outstanding  shares of Class B Common Stock (other than
               by  holders  of Class B Common  Stock  converting  Class B Common
               Stock into Class A Common Stock or through voluntary  disposition
               thereof  to the  Corporation);  or (iii)  effect  any  change  or
               alteration in any provision of this Section 3 of this Article V.
 
          (e)  Adjustments. In the event of a reorganization,  recapitalization,
               merger or stock split  affecting the Class B Common  Stock,  then
               the threshold number of shares of Class B Common Stock referenced
               in  the  definition  of  an  Initial  Trigger  Event  or  in  the
               adjustment  of the Class A  Percentage  or the Class B Percentage
               specified in subsection  (b)(ii) of this Section 3 and the number
               or kind of  shares  into  which  the  Class B  Common  Stock  are
               convertible pursuant to this Article V shall be appropriately and
               proportionately  adjusted;  and in each such case such provisions
               shall be applied so as to give effect to such adjustments. If any
               such  transaction  shall be effected by amendment of the Articles
               of  Incorporation,  then such amendment  shall itself adjust such
               threshold  share number or conversion rate in accordance with the
               foregoing.
 
2.   The  undersigned  hereby  certifies  that the foregoing  Amendment was duly
     adopted and approved by all of the directors of the Corporation on April 1,
     2002,  and by the  shareholders  of the  Corporation  on May 22, 2002.  The
     number  of  votes  cast  for  the  Amendment  by  the  shareholders  of the
     Corporation was sufficient for approval.  The Amendment was approved by the
     holders of the  Corporation's  Class A Common  Stock and its Class B Common
     Stock,  voting as separate voting groups,  and, in each case, the number of
     votes cast for the Amendment by the  shareholders  in such voting group was
     sufficient for approval by that voting group.
 
Dated: May 22, 2002                     BFC FINANCIAL CORPORATION
 
 
                                        By: /s/ Glen R. Gilbert
                                            ------------------------------------
                                            Glen R. Gilbert
                                            Executive Vice President, Chief
                                            Financial Officer and Secretary
 
 

The following is the text of Sections A through I of Article IV of the Amended and Restated Articles of Incorporation of BFC Financial Corporation, which is marked to show the effects of the Articles of Amendment filed by BFC Financial Corporation with the Florida Department of State on December 17, 2008.

 

     A. Designation of Preferred Stock. The Board of Directors of the Corporation has adopted resolutions designating one series of preferred stock. The series of preferred stock shall be designated and known as “5% Cumulative Convertible Preferred Stock” (the “5% Preferred Stock”). The number of shares constituting the 5% Preferred Stock shall be 15,000 shares. Each share of 5% Preferred Stock shall have a stated value equal to $1,000 (the “Stated Value”).

     B. Conversion Rights. The 5% Preferred Stock shall be convertible into class A common stock, par value $0.01 per share, of the Corporation (the “Class A Common Stock”) as follows:

          (1) Optional Conversion. Subject to and upon compliance with the provisions of this Section B, a holder of any shares of 5% Preferred Stock (a “Holder”) shall have the right, at such Holder’s option at any time on or after April 30, 2007, to convert any of such shares of 5% Preferred Stock into such number of fully paid and non-assessable shares of Class A Common Stock as determined by dividing (a) the Stated Value by (b) the Conversion Price (as hereinafter defined) in effect on the Conversion Date (as hereinafter defined); provided, however, that a Holder may convert any shares of 5% Preferred Stock before April 30, 2007, if (a) the Class A Common Stock shall have an average closing bid price equal to 150% of the Conversion Price then in effect, for the 20 consecutive trading days prior to the delivery of a Conversion Notice (as hereinafter defined) or (b) the Corporation shall have delivered a Redemption Notice pursuant to Section C.

          (2) Conversion Price. The price at which shares of Class A Common Stock shall be deliverable upon conversion of the shares of 5% Preferred Stock shall initially be $12.00 per share of Class A Common Stock (the “Conversion Price”). Such Conversion Price shall be subject to adjustment as hereinafter provided.

          (3) Mechanics of Conversion. In order to exercise the conversion right specified in Section B(1), the Holder of shares of 5% Preferred Stock shall give written notice (the “Conversion Notice”) to the Corporation that the Holder elects to convert a stated number of shares of 5% Preferred Stock into a stated number of shares of Class A Common Stock, and by surrendering the certificate or certificates representing such shares to be converted, duly endorsed to the Corporation or in blank, to the Corporation at its principal office (or at such other office as the Corporation may designate by written notice, postage prepaid, to all Holders) at any time during its usual business hours, together with a statement of the name or names (with addresses) and denominations in which the certificate or certificates for Class A Common Stock shall be issued and instructions for the delivery thereof; provided, however, that if the Class A Common Stock is to be issued in the name of a person other than the registered holder of the 5% Preferred Stock, the Holder shall provide with such Conversion Notice an opinion of counsel reasonably satisfactory to the Corporation to the effect that such transfer is exempt from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws; and provided, further, that the Holder shall pay all transfer taxes payable with respect to such transfer. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of surrender of the certificate or certificates representing the shares of 5% Preferred Stock to be converted (the “Conversion Date”), and the person or persons entitled to receive the shares of Class A Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Class A Common Stock on such date. Upon the conversion of any shares of 5% Preferred Stock, the Corporation shall pay to the Holder all dividends on the shares of 5% Preferred Stock being converted which are accrued and unpaid to the Conversion Date (which shall include any dividends accrued and unpaid from any prior completed quarterly period, plus any pro rata per diem dividends accumulated since the end of the last full quarterly period).

 


 

          (4) Conversion Price Adjustments. The Conversion Price shall be subject to adjustment from time to time as follows:

               (a) Stock Dividends, Subdivisions, Reclassification, or Combinations. If the Corporation shall (i) declare a dividend or make a distribution on the outstanding shares of Class A Common Stock in shares of its Class A Common Stock, (ii) subdivide or reclassify the outstanding shares of Class A Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding Class A Common Stock into a smaller number of shares, then in each such case, the Conversion Price in effect at the time of the record date, if applicable, or the effective date thereof, whichever is earlier, shall be proportionately adjusted so that the Holder of any shares of 5% Preferred Stock surrendered for conversion after such date shall be entitled to receive the number of shares of Class A Common Stock that he would have owned or been entitled to receive had such 5% Preferred Stock been converted immediately prior to such date. Successive adjustments in the Conversion Price shall be made whenever any event specified above shall occur. An adjustment made pursuant to this Section 4(a) shall become effective (x) in the case of any such dividend or distribution, immediately after the close of business on the record date for the determination of holders of shares of Class A Common Stock entitled to receive such dividend or distribution, or (y) in the case of any such subdivision, reclassification or combination, at the close of business on the day upon which such corporate action becomes effective.

               (b) Issuances of Rights or Warrants. If the Corporation grants or issues rights or warrants to subscribe for shares of Class A Common Stock to all the holders of the Class A Common Stock (and not to Holders), which rights or warrants entitle such holder to acquire shares of Class A Common Stock at a price per share (the “Issuance Price”) less than the Current Market Price (as defined below), the Conversion Price then in effect shall be reduced to a Conversion Price determined by multiplying such Conversion Price by a fraction, the numerator of which shall be the number of shares of Class A Common Stock outstanding immediately prior to such issuance or grant plus the number of shares of Class A Common Stock which the aggregate consideration to be received by the Corporation upon full exercise of such rights or warrants would purchase at the Current Market Price, and the denominator of which shall be the number of shares of Class A Common Stock outstanding immediately prior to such issuance or grant plus the number of shares of Class A Common Stock issuable upon full exercise of such rights or warrants. In the event any such right or warrant shall expire and shall not have been exercised, the Conversion Price shall immediately upon such expiration be recomputed and effective immediately upon such expiration be increased to the Conversion Price which it would have been (but reflecting any other adjustments in the Conversion Price made pursuant to the provisions of this Section) had the adjustment of the Conversion Price made upon the issuance of such right or warrant been made on the basis of offering for subscription or purchase only that number of shares of Class A Common Stock actually purchased upon the exercise of such rights or warrants actually exercised. For purposes of this Section 4(b), the number of shares of Class A Common Stock at any time outstanding shall mean the aggregate of all shares of Class A Common Stock then outstanding (other than any shares of Class A Common Stock then owned or held by or for the account of the Corporation), treating for purposes of this calculation all options, warrants, rights or other securities convertible into, or exchangeable or exercisable for, shares of Class A Common Stock then outstanding as having been converted, exchanged or exercised.

               (c) Other Distributions. If the Corporation shall distribute to all holders of Class A Common Stock (and not to Holders) evidences of its indebtedness or assets (other than cash payable out of earnings or surplus), then in each such case the Conversion Price at which each share of 5% Preferred Stock shall thereafter be convertible shall be determined by multiplying the Conversion Price in effect immediately prior to the record date fixed for determination of shareholders entitled to receive such distribution by a fraction, the denominator of which shall be the Conversion Price determined as of the record date mentioned above, and the numerator of which shall be such Conversion Price on such record date less the then fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of Class A Common Stock as determined by the Company’s independent certified public accountants that regularly examines the financial statements of the Company.

2


 

               (d) Postponement of Adjustment. Notwithstanding the foregoing, the Corporation may at its sole option, postpone the calculation and effectiveness of any adjustment required hereby for a period of up to three years; provided, however, that the Corporation may not postpone such adjustment if such adjustment together with any other adjustment postponed pursuant to the terms hereof would result in an adjustment to the Conversion Price of more than one percent.

               (e) Rounding. All calculations under this Section shall be made to the nearest cent of the nearest 1/100th of a share, as the case may be.

               (f) Abandonment of Action. If the Corporation shall take a record of the holders of its Class A Common Stock for the purpose of entitling them to receive a dividend or other distribution and shall thereafter, and before such dividend or distribution is paid or delivered to shareholders entitled thereto, legally abandon its plan to pay or deliver such dividend or distribution, then no adjustment in the Conversion Price then in effect shall be made by reason of the taking of such record, and any such adjustment previously made as a result of the taking of such record shall be reversed.

               (g) Current Market Price. “Current Market Price” shall mean the average of the daily closing prices per share of Class A Common Stock for the 20 consecutive trading days ending on the day in question. The closing price for each day shall be the last reported sales price regular way or, in the case no such reported sales take place on such day, the average of the last reported bid and asked prices regular way, in either case on the principal national securities exchange on which the Class A Common Stock is listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, the average of the highest bid and the lowest asked prices quoted on the National Association of Securities Dealers Automated Quotation System or, if not so quoted, as reported by the National Quotation Bureau, Inc. If the Class A Common Stock is not so traded or quoted, then “Current Market Price” shall be as determined in good faith by or pursuant to the directions and authorization of the Board of Directors of the Corporation.

          (5) Fractional Shares. Upon a conversion hereunder the Corporation shall not be required to issue stock certificates representing fractions of shares of Class A Common Stock, but shall round the number of shares of Class A Common Stock to be issued to the closest number of whole shares of Class A Common Stock.

          (6) Approvals. If any shares of Class A Common Stock to be reserved for the purpose of conversion of shares of 5% Preferred Stock require registration with or approval of any governmental authority under any Federal or state law before such shares may be validly issued or delivered upon conversion, then the Corporation will in good faith and as expeditiously as possible endeavor to secure such registration or approval, as the case may be. If, and so long as, any Class A Common Stock into which the shares of 5% Preferred Stock are then convertible is listed on any national securities exchange, the Corporation will, if permitted by the rules of such exchange, list and keep listed on such exchange, upon official notice of issuance, all shares of such Class A Common Stock issuable upon conversion.

          (7) Valid Issuance. All shares of Class A Common Stock that may be issued upon conversion of shares of 5% Preferred Stock will upon issuance be duly and validly issued, fully paid and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof, and the Corporation shall take no action that will cause a contrary result.

3


 

     C. Redemption.

          (1) The shares of 5% Preferred Stock may be redeemed at the option of the Corporation, at any time and from time to time on or after April 30, 2005, at the following redemption prices per share (the “Redemption Price”), if redeemed during the 12-month period beginning April 30 of each of the years set forth below:

 

 

 

 

 

Year

 

Redemption Price

2005

 

$

1,050

 

2006

 

$

1,045

 

2007

 

$

1,040

 

2008

 

$

1,035

 

2009

 

$

1,030

 

2010

 

$

1,025

 

2011

 

$

1,020

 

2012

 

$

1,015

 

2013

 

$

1,010

 

2014

 

$

1,005

 

2015 and thereafter

 

$

1,000

 

          (2) In the event the Corporation elects to redeem the shares of 5% Preferred Stock as provided herein, the Corporation shall deliver to each Holder a written notice (the “Redemption Notice”), not less than 30 days prior to the date set for redemption (the “Redemption Date”), which notice shall be sent first class postage prepaid to each Holder at the address last shown on the records of the Corporation for such Holder, and set forth the number of shares to be redeemed, the Redemption Date, the Redemption Price and the place for surrender of the certificates representing the shares of 5% Preferred Stock. On or prior to each Redemption Date, each Holder of shares of 5% Preferred Stock to be redeemed shall surrender his or its certificate or certificates representing such shares to the Corporation, in the manner and at the place designated in the Redemption Notice, and thereupon the Redemption Price of such shares, plus an amount equal to the accumulated and unpaid dividends thereon to the Redemption Date (which shall include any dividends accrued and unpaid from any prior completed quarterly period, plus any pro rata per diem dividends accumulated since the end of the last full quarterly period), shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof and each surrendered certificate shall be cancelled. In the event less than all the shares represented by any such certificate are redeemed, a new certificate shall be issued representing the unredeemed shares. From and after the Redemption Date, unless there shall have been a default in payment of the Redemption Price, all rights of the Holders of the 5% Preferred Stock designated for redemption in the Redemption Notice (except the right to receive the Redemption Price without interest upon surrender of their certificate or certificates) shall cease with respect to such shares, and such shares shall not thereafter be transferred on the books of the Corporation or be deemed to be outstanding for any purpose whatsoever.

          (3) Notwithstanding anything to the contrary contained herein, in the event the Corporation sells any of its shares of Series B Convertible Preferred Stock (the “Benihana Preferred Stock”) of Benihana, Inc. (“Benihana”) or any shares of Benihana’s common stock received upon conversion of the Benihana Preferred Stock (including any deemed sale upon the liquidation of Benihana), or in the event any shares of Benihana Preferred Stock owned by the Corporation are redeemed by Benihana, then the Corporation shall use the net proceeds from such sale or redemption, as the case may be, to redeem shares of 5% Preferred Stock in equal amounts from each Holder, with such redemption being to the fullest possible extent based on the Redemption Prices set forth in Section C(1) of this Article IV and the amount of net proceeds received by the Corporation from such sale or redemption. The procedures for any such redemption of the 5% Preferred Stock shall be as set forth in Section C(2) of this Article IV; provided, however, that the Corporation shall deliver the Redemption Notice to each Holder within 10 days after the Corporation receives the net proceeds from the sale or redemption, as the case may be, of the Corporation’s shares of Benihana Preferred Stock or the sale of shares of Benihana’s common stock received upon conversion of the Benihana Preferred Stock, and the Redemption Date shall be not less than 10 days nor more than 60 days from the date of the Redemption Notice. A Holder may, subject to Section B hereof, convert any and all shares of 5% Preferred Stock called for redemption pursuant to the terms hereof, provided that a Conversion Notice and the certificate or certificates representing the shares of 5% Preferred Stock so to be redeemed are delivered to the Corporation no later than the close of business two days prior to the Redemption Date.

4


 

     D. Liquidation.

          (1) Liquidation Preference. In the event of liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, the Holders of the 5% Preferred Stock shall be entitled to receive, prior and before any distribution of assets shall be made to the holders of any class of common stock of the Corporation by reason of their ownership of such common stock, an amount equal to the Stated Value per share of 5% Preferred Stock held by such Holder plus any accumulated and unpaid dividends thereon (the “Liquidation Preference”); provided, however, that in the event that such liquidation, dissolution or winding up of the Corporation shall be voluntary, then the Liquidation Preference shall be, for purposes of this Section D(1) only, an amount equal to the Redemption Price that would have been payable pursuant to Section C above had the Corporation redeemed the 5% Preferred Stock on the date of such liquidation, dissolution or winding up. Upon receipt of the Liquidation Preference, the Holders of the 5% Preferred Stock shall have no further rights to participate in any remaining assets of the Corporation.

          (2) Ratable Distribution. If upon any liquidation, dissolution or winding up of the Corporation, the net assets of the Corporation to be distributed among the Holders shall be insufficient to permit payment in full to the Holders of such 5% Preferred Stock of the Liquidation Preference, then all remaining net assets of the Corporation after the provision for the payment of the Corporation’s debts shall be distributed among the Holders of the 5% Preferred Stock ratably in proportion to the full amounts to which they would otherwise be entitled to receive.

          (3) Consolidation; Merger; Sale. A consolidation or merger of the Corporation with or into any other Corporation or entity, or a sale of all or substantially all of the assets of the Corporation, shall not be deemed to be a liquidation, dissolution or winding up within the meaning of this Section D.

     E. Voting. Except as otherwise required under Florida law, the 5% Preferred Stock shall have no voting rights.

     F. Dividends. The Holders of the 5% Preferred Stock shall be entitled to receive, when and as declared by the Board of Directors out of funds legally available therefore, cumulative quarterly cash dividends on each share of 5% Preferred Stock at a rate per annum equal to 5% of the Stated Value from the date of issuance and be payable quarterly in arrears on the first day of January, April, July and October commencing July 1, 2004. No dividend or other distribution (other than a dividend or distribution payable solely in common stock) shall be paid on or set apart for the payment on the common stock of the Corporation until such time as all accrued and unpaid dividends on the 5% Preferred Stock have been or contemporaneously are paid or declared and a sum set apart sufficient for the payment thereof. Subject to the foregoing provisions, dividends or distributions on common stock as may be determined by the Board of Directors may be declared and paid from time to time out of the remaining funds legally available for the payment of dividends, and the 5% Preferred Stock shall not be entitled to participate in any such dividends or distributions, whether payable in cash, stock or otherwise. Notwithstanding anything to the contrary contained herein, in the event the Corporation defaults on its obligation hereunder to make dividend payments to the Holders of the 5% Preferred Stock, then the Holders shall be entitled, upon written notice to Benihana with a copy to the Corporation (the “Benihana Notice”), (i) to receive directly from Benihana all dividends declared and to be paid on the Corporation’s shares of the Benihana Preferred Stock or (ii) in the event the Corporation previously converted any or all of its shares of Benihana Preferred Stock into shares of Benihana’s common stock, to receive directly from Benihana all payments due with respect to such shares of Benihana’s common stock upon the liquidation of Benihana or other liquidity event, in each case until the Holders receive the aggregate amount they would have received if the Corporation had not so defaulted on its dividend payment obligation. The Benihana Notice shall set forth in reasonable detail, among other information as may be required by Benihana, a description of the Corporation’s default on its dividend payment obligation with respect to the 5% Preferred Stock and the amount of payments on the shares of Benihana Preferred Stock or Benihana’s common stock, as the case may be, that the Holders shall receive in place of the Corporation.

5


 

     G. No Preemptive Rights. No Holders of 5% Preferred Stock shall have any preemptive right whatsoever to purchase, subscribe for or otherwise acquire, stock of any class of the Corporation nor of any security convertible into, nor of any warrant, option or right to purchase, subscribe for or otherwise acquire, stock of any class of the Corporation, whether now or hereafter authorized.

     H. Exclusion of Other Rights. Except as may otherwise be required by Florida law, the shares of 5% Preferred Stock shall not have any rights, preferences or privileges, other than those specifically set forth herein.

     I. Status of Reacquired Shares. No shares of 5% Preferred Stock which have been issued and redeemed or converted into Class A Common Stock may be reissued, and all such shares shall be returned to the status of undesignated shares of preferred stock of the Corporation.

[As Filed: 2008-12-17]