UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant [x]
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| o | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
o Definitive Proxy Statement
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o Definitive Additional Materials
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o Soliciting Material Pursuant toss.240.14a-11(c) orss.240.14a-12
toSection 240.14a-12
BFC FINANCIAL CORPORATION
(NameFinancial Corporation
(Name of Registrant as Specified inIn Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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and 0-11.
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(2) Aggregate number of securities to which transaction applies:
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pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
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| (2) | Aggregate number of securities to which transaction applies: |
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| (4) | Proposed maximum aggregate value of transaction: |
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BFC Financial Corporation
2100 West Cypress Creek Road
Fort Lauderdale, Florida 33309
April , 2009
Dear Shareholder:
You are cordially invited to attend the Annual Meeting of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the form or schedule and the dateShareholders of its filing.
(1) Amount previously paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
BFC Financial Corporation, P.O. Box 5403which will be held on May 19, 2009 at 10:30 a.m., local time, at the BankAtlantic Support Center, 2100 West Cypress Creek Road, Fort Lauderdale, FL 33310-5403
Florida 33309.
Please read these materials so that you will know what we plan to do at the Annual Meeting. Also, please sign and return the accompanying proxy card in the postage-paid envelope or otherwise transmit your voting instructions as described on the accompanying proxy card. This way, your shares will be voted as you direct even if you cannot attend the Annual Meeting.
On behalf of your Board of Directors and our employees, I would like to express our appreciation for your continued support.
Sincerely,
Alan B. Levan
Chairman of the Board
BFC Financial Corporation
2100 West Cypress Creek Road
Fort Lauderdale, Florida 33309
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
SHAREHOLDERS
To Be Held on May 22, 2002
Fort Lauderdale, Florida
April ____, 2002
To19, 2009
Notice is hereby given that the Stockholders of BFC Financial Corporation:
The Annual Meeting of StockholdersShareholders of BFC Financial Corporation (the "Company"“Company”) will be held at the Westin HotelBankAtlantic Support Center, 2100 West Cypress Creek Road, Fort Lauderdale, 400 Corporate Drive (I-95 and
Cypress Creek Road), Fort Lauderdale, FL 33334,Florida 33309 on Wednesday, May 22, 2002,19, 2009 commencing at 11:0010:30 a.m., local time, for the following purposes:
1. To elect two membersone director to the Company’s Board of Directors one to serve a term of
three years anduntil the other to serve a term of one year;
Annual Meeting in 2012.
2. To consider and vote uponapprove an amendment to the Company'sCompany’s Amended and Restated Articles of Incorporation (the "Amendment") which, if adopted, will, among other
things: (i) grant to holdersincreasing the number of authorized shares of the Company'sCompany’s Class A Common Stock which currently has no voting rights except under limited
circumstances provided by Florida law, one vote per share, which will,
infrom 70,000,000 shares to 100,000,000 shares.
3. To approve an amendment to the aggregate initially represent 22.0% of the combined voting
power of the Class A CommonCompany’s 2005 Stock and the Class B Common Stock as of
the date that the Amendment is first adopted, (ii) thereafter, based
upon the number of shares of Class B Common Stock outstanding from
time to time, grant to holders of Class B Common Stock such number of
votes per share which will initially represent 78.0% of the combined
voting power of the Class A Common Stock and Class B Common Stock and
which will thereafter decline but which will in no case represent less
than 47.0% of the combined voting power of the Class A Common Stock
and Class B Common Stock, and (iii) provide for class voting on
certain matters (the "Amendment"); and
3.Incentive Plan.
4. To transact such other business as may properly comebe brought before the Annual Meeting or any adjournment or postponement thereof, including anythereof.
The matters relating or incident to the foregoing.
The foregoing matterslisted above are described in more detailfully described in the Proxy Statement whichthat forms a part of this Notice.
Notice of Meeting.
Only stockholdersshareholders of record at the close of business on April ___, 20022, 2009 are entitled to notice of, and to vote at, the Annual Meeting. Class A Common
Stockholders will be entitled to vote on the approval
Sincerely yours,
Alan B. Levan
Chairman of the Amendment but will
not otherwise be entitled to vote at the meeting. Class B Common Shareholders
will be entitled to vote on all matters properly brought before the meeting.
Enclosed for your review and consideration is a proxy statement in connection
with the solicitation of proxies on behalf of theBoard
Fort Lauderdale, Florida
April , 2009
IMPORTANT: THE PROMPT RETURN OF PROXIES WILL SAVE THE COMPANY THE EXPENSE OF FURTHER REQUESTS FOR PROXIES; THEREFORE EVEN IF YOU PLAN TO ATTEND THE ANNUAL MEETING, PLEASE COMPLETE, SIGN AND RETURN THE ENCLOSED PROXY CARD IN THE ENVELOPE PROVIDED OR OTHERWISE TRANSMIT YOUR VOTING INSTRUCTIONS AS DESCRIBED ON THE ENCLOSED PROXY CARD. NO POSTAGE IS REQUIRED FOR THE PROXY CARD IF MAILED IN THE UNITED STATES.
TABLE OF CONTENTS
BFC Financial Corporation
2100 West Cypress Creek Road
Fort Lauderdale, Florida 33309
PROXY STATEMENT
The Board of Directors of the
Company for use at the Annual Meeting of Stockholders. You are urged to read the
proxy statement carefully. YOUR VOTE IS IMPORTANT.
Whether or not you expect to attend the meeting in person, please mark, sign and
return the accompanying proxy card in the enclosed envelope. If you later desire
to revoke your proxy, you may do so at any time prior to its exercise by giving
written notice to the Secretary of the Company, by executing a subsequent dated
proxy or by personally attending and voting at the Annual Meeting. Any proxy
that is not revoked will be voted at the meeting as directed in the proxy, or,
where no direction is given, the proxy will be voted in accordance with the
recommendations of the Board of Directors.
Sincerely,
/s/ Glen R. Gilbert
-------------------
Glen R. Gilbert
Secretary
BFC Financial Corporation P.O. Box 5403
Fort Lauderdale, FL 33310-5403
PROXY STATEMENT
This Proxy Statement(the “Company” or “BFC”) is furnished in connection with the solicitation ofsoliciting proxies to be used at the 2002 Annual Meeting of StockholdersShareholders of the Company (the "Annual Meeting") of
BFC Financial Corporation (the "Company"“Annual Meeting”) to be held at the BankAtlantic Support Center, 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309 on Wednesday, May 22, 2002,
commencing19, 2009 at 11:00 AM,10:30 a.m., local time, and at any and all postponements or adjournments of the Westin Hotel Fort Lauderdale, 400
Corporate Drive (I-95 and Cypress Creek Road), Fort Lauderdale, FL 33334, and
any adjournment thereofAnnual Meeting, for the purposes set forth in the accompanying Notice of Meeting.
This solicitationProxy Statement and the accompanying Notice of proxiesMeeting and proxy card are first being mailed to shareholders on or about April 29, 2009.
QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS
AND THE ANNUAL MEETING
AND THE ANNUAL MEETING
What is made on behalfthe purpose of the Annual Meeting?
At the Annual Meeting, shareholders will be asked to consider and vote upon, among other matters which may properly be brought before the Annual Meeting, the election of one director to the Company’s Board of Directors, the amendment to the Company’s Amended and Restated Articles of Incorporation and the amendment to the Company’s 2005 Stock Incentive Plan. Also, management will report on the Company’s performance during the last fiscal year and respond to appropriate questions from shareholders.
Who is entitled to vote at the meeting?
Record holders of the Company.
Each proxy solicited hereby, if properly executedCompany’s Class A Common Stock (“Class A Stock”) and received byrecord holders of the Company
priorCompany’s Class B Common Stock (“Class B Stock”) at the close of business on April 2, 2009 (the “Record Date”) may vote at the Annual Meeting.
On the Record Date, 38,254,389 shares of Class A Stock and 6,875,104 shares of Class B Stock were outstanding and, thus, are eligible to vote at the Annual Meeting.
What are the voting rights of the holders of Class A Stock and Class B Stock?
Holders of Class A Stock and holders of Class B Stock will vote as one class on each of the matters to be voted upon at the Annual Meeting. Holders of Class A Stock are entitled to one vote per share on each matter presented at the Annual Meeting, and not revoked prior to its use, will be votedwith all holders of Class A Stock having in the aggregate 22.0% of the general voting power. The number of votes represented by each share of Class B Stock, which represents in the aggregate 78.0% of the general voting power, is calculated each year in accordance with the instructions contained therein. Executed proxies with no
instructions contained thereinCompany’s Amended and Restated Articles of Incorporation. At the Annual Meeting, each outstanding share of Class B Stock will be entitled to 19.7276 votes on each matter presented at the Annual Meeting.
What constitutes a quorum?
The presence at the Annual Meeting, in person or by proxy, of the holders of shares representing a majority of the aggregate voting power (as described above) of the Class A Stock and Class B Stock outstanding on the Record Date will constitute a quorum, permitting the conduct of business at the Annual Meeting.
What is the difference between a shareholder of record and a “street name” holder?
If your shares are registered directly in your name with American Stock Transfer & Trust Company, the Company’s stock transfer agent, you are considered the shareholder of record with respect to those shares. If your shares are held in a stock brokerage account or by a bank or other nominee, you are considered the beneficial owner of these shares but not the shareholder of record, and your shares are held in “street name.”
How do I vote my shares?
If you are a shareholder of record, you can give a proxy to be voted at the Annual Meeting by mailing in the enclosed proxy card or by transmitting your voting instructions by telephone or internet as described in further detail on the enclosed proxy card. You may also vote your shares at the Annual Meeting by completing a ballot at the Annual Meeting.
If you hold your shares in “street name,” you must vote your shares in the manner prescribed by your broker or nominee. Your broker or nominee has enclosed or provided a voting instruction card for you to use in directing the broker or nominee how to vote your shares.
Can I vote my shares in person at the Annual Meeting?
If you are a shareholder of record, you may vote your shares in person at the Annual Meeting by completing a ballot at the Annual Meeting.
However, if you are a “street name” holder, you may vote your shares in person at the Annual Meeting only if you obtain a signed proxy from your broker or nominee giving you the right to vote the shares.
Shareholders who wish to attend the Annual Meeting may contact the Company’s Investor Relations department at(954) 940-4994 for directions. Even if you currently plan to attend the Annual Meeting, we recommend that you also submit your vote by proxy or by giving instructions to your broker or nominee as described above so that your vote will be counted if you later decide not to attend the Annual Meeting.
What are my choices when voting?
With respect to the director election, you may vote for the director nominee, or your vote may be withheld with respect to the director nominee. The proposal related to the director election is described in this Proxy Statement beginning on page 6.
In addition, you may vote for or against, or you may abstain from voting on, each of the nominees
for director described below and for the approval ofproposal to approve the amendment ofto the Company'sCompany’s Amended and Restated Articles of Incorporation (the "Amendment")and the proposal to approve the amendment to the Company’s 2005 Stock Incentive Plan. The proposal related to the amendment to the Company’s Amended and Restated Articles of Incorporation is described in this Proxy Statement beginning on page 19. The proposal related to the amendment to the Company’s 2005 Stock Incentive Plan is described in this Proxy Statement beginning on page 20.
What is the Board’s recommendation?
The Board of Directors recommends a voteFORthe director nominee,FORthe amendment to the Company’s Amended and Restated Articles of Incorporation andFORthe amendment to the Company’s 2005 Stock Incentive Plan.
What if I do not specify on my proxy card how I want my shares voted?
If you mail in your proxy card but do not specify on your proxy card how you want to vote your shares, the Company will vote themFORthe director nominee,FORthe amendment to the Company’s Amended and Restated Articles of Incorporation andFORthe amendment to the Company’s 2005 Stock Incentive Plan . Although the Board of Directors is unawarenot aware of any other matters to be presented at the Annual Meeting, other
than matters disclosed herein, if any other matters are properly brought before the Annual Meeting, the persons named in the enclosed form of proxy wouldwill vote asthe proxies in accordance with their own best judgment on those matters.
Holders of the Company's Class A Common Stock will be entitled to
Can I change my vote?
Yes. You can change your vote only on
the approval of the Amendment, and on no other matter. Holders of the Company's
Class B Common Stock will be entitled to vote on the approval of the Amendment,
for the election of the two nominees to the Company's Board of Directors and on
any other matter properly brought before the Annual Meeting.
Any stockholder signing and returning a proxy on the enclosed form has the power
to revoke it at any time before ityour proxy is exercised by notifying the Secretary of
the Company in writingvoted at the address set forth above, by submittingAnnual Meeting. If you are the record owner of your shares, you can do this in one of three ways. First, you can send a duly
executedwritten notice to the Company’s Secretary stating that you would like to revoke your proxy. Second, you can submit a new valid proxy bearing a later date or transmit new voting instructions by attendingtelephone or internet. Third, you can attend the Annual
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Meeting and votingvote in person.
Record Date; Stockholders Entitled to Vote
Only stockholders of record, at the close of business on April ____, 2002 are
entitled to vote at the Annual Meeting. On that day, there were issued and
outstanding _________ shares of Class A Common Stock and _________ shares of
Class B Common Stock. Holders of the Company's Class A Common Stock are not
entitled to vote on any of the matters to be submitted for a voteperson; however. attendance at the Annual Meeting other than the approvalwill not in and of the Amendment. Class B Common Shareholders
are entitled to vote on all matters properly brought before the meeting. Each
holderitself constitute revocation of Class A Common Stock and each holder of Class B Common Stock is
entitled to one vote for each share held. See "Quorum and Required Vote" and
"Security Ownership Of Certain Beneficial Owners And Management."
Quorum
A majority of the outstanding shares of Class A Common Stock and a majority of
the outstanding shares of Class B Common Stock entitled to vote at the meeting,
represented in person or by proxy, constitutes a quorum to consider and vote
upon the Amendment. A majority of the outstanding shares of Class B Common Stock
entitled to vote at the meeting, represented in person or by proxy, constitutes
a quorum for the transaction of any other business properly brought before the
Annual Meeting, including the election of directors. In the event that therepreviously executed proxy.
If you are not sufficientthe record owner of your shares representedand your shares are held in “street name,” you must contact your broker, bank or other nominee to find out how to change your vote.
What vote is required for a quorum, the Annual Meeting mayproposal to be adjourned from time to time until a quorum is obtained; provided, however, that
if the number of shares of Class A Common Stock present does not constitute a
quorum but a majority of the outstanding shares of Class B Common Stock is
present, the Company may transact any business that does not require the vote of
the holders of Class A Common Stock. Abstentions and "broker non-votes" (as
described below) will be counted to determine the presence of a quorum.
Vote Required for Approval
To elect the two nomineesapproved?
With respect to the Company's Board of Directors,director election, the affirmative vote of a plurality of the votes cast of Class B Common Stockat the Annual Meeting is required.
Holders of Classrequired for the director nominee to be elected. A Common Stock have no rightproperly executed proxy marked “WITHHOLD AUTHORITY” with respect to vote in the election of directors.
To approve the Amendment: (i)director nominee will not be voted with respect to the numberdirector election proposal, although it will be counted for purposes of votes in favordetermining whether or not a quorum exists.
With respect to the amendment to the Company’s Amended and Restated Articles of Incorporation, the Company must receive the affirmative vote of the proposal cast
by the holders of Class A Common Stock must exceed the number of votes against
the proposal by the holders of Class A Common Stock, and (ii) holders of a majority of the issued and outstanding shares of Class B Common Stock must vote
in favor ofvotes entitled to be cast on the proposal. Abstentions and "broker non-votes"proposal by holders of Class A Common Stock and Class B Stock voting together as one class. The same voting requirement applies to the amendment to the Company’s 2005 Stock Incentive Plan. Abstentions will effectively count as votes against the amendment to the Company’s Amended and Restated Articles of Incorporation and against the amendment to the Company’s 2005 Stock Incentive Plan.
If my shares are held in “street name” by my broker or other nominee, will my broker or nominee vote my shares for me?
If you hold your shares in “street name” through a broker or other nominee, whether your broker may vote your shares in its discretion depends on the proposals before the Annual Meeting. Your broker may vote your shares in its discretion on “routine matters” such as the election of directors and the amendment to the Company’s Amended and Restated Articles of Incorporation if no voting instructions with respect to such proposals are furnished. However, your broker will not have discretion to vote your shares with respect to the amendment to the Company’s 2005 Stock Incentive Plan if you do not provide voting instructions with respect to such proposal to your broker. This is called a “broker non-vote.” Broker non-votes, which are not considered as votes in favor of or against a proposal, also include votes with respect to which your broker elects not to exercise its discretionary voting authority. Broker non-votes will have no effect on the vote while abstentionselection of directors, but will effectively count as votes against the amendment to the Company’s Amended and "broker-non
votes" by holdersRestated Articles of Class B CommonIncorporation and against the amendment to the Company’s 2005 Stock will haveIncentive Plan.
Are there any other matters to be acted upon at the same effect asAnnual Meeting?
The Company does not know of any other matters to be presented or acted upon at the Annual Meeting. If any other matter is presented at the Annual Meeting on which a vote "against"may properly be taken, the Amendment. For purposesshares represented by proxies will be voted in accordance with the judgment of considering the Amendment, the Class A
Common Stock and Class B Common Stock will vote as separateperson or persons voting groups.
Brokers who hold shares in "street name" for customers are precluded from
exercising voting discretion with respectthose shares.
CORPORATE GOVERNANCE
Pursuant to the approval of non-routine matters
such asCompany’s Bylaws and the Amendment (so called "broker non-votes"). Accordingly, absent
specificFlorida Business Corporation Act, the Company’s business and timely instructions fromaffairs are managed under the beneficial owner of such shares,
brokers are not empowered to vote such shares with respect to the approvaldirection of the Amendment.
Security Ownership Of Certain Beneficial Owners And Management
ListedBoard of Directors. Directors are kept informed of the Company’s business through discussions with management, including the Chief Executive Officer and other senior officers, by reviewing materials provided to them and by participating in meetings of the Board of Directors and its committees.
Determination of Director Independence
The full Board of Directors undertook a review of each director’s independence on March 9, 2009. In making its independence determinations, the Board of Directors adopted the definition of “independence” set forth in the tablelisting standards of NYSE Arca, Inc. (“NYSE Arca”) and considered, among other things, transactions and relationships between each director or any member of his immediate family and the Company and its subsidiaries and affiliates, including those reported below areunder “Certain Relationships and Related Transactions.” The Board also examined transactions and relationships between directors or their affiliates and members of the beneficial owners knownCompany’s
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senior management or their affiliates. As permitted by the NYSE Arca listing standards, the Board determined that the following categories of relationships will not constitute material relationships that impair a director’s independence: (i) banking relationships with BankAtlantic in the ordinary course of BankAtlantic’s business; (ii) serving on third party boards of directors with other members of the Board; (iii) payments or charitable gifts by the Company to hold
asentities of March 31, 2002 more thanwhich a director is an executive officer or employee where such payments or charitable gifts do not exceed the greater of $200,000 or 5% of either classthe entity’s consolidated gross revenues; and (iv) investments by directors in common with each other or the Company, its affiliates or executive officers. As a result of our outstanding Common
Stock.its review of the relationships of each of the members of the Board, and considering these categorical standards, the Board has affirmatively determined that D. Keith Cobb, Oscar Holzmann and Neil Sterling, who together comprise a majority of the Board of Directors, are “independent” directors within the meaning of the NYSE Arca listing standards and applicable law.
Committees of the Board of Directors and Meeting Attendance
The Board of Directors has established Audit, Compensation and Nominating/Corporate Governance Committees. The Board has adopted a written charter for each of these three committees and Corporate Governance Guidelines that address themake-up and functioning of the Board. The Board has also adopted a Code of Business Conduct and Ethics that applies to all of the Company’s directors, officers and employees. The committee charters, Corporate Governance Guidelines and Code of Business Conduct and Ethics are posted in the “Investor Relations” section of the Company’s website atwww.bfcfinancial.com, and each is available in print, without charge, to any shareholder.
The Board met eleven times during 2008. Each of the members of the Board of Directors attended at least 75% of the meetings of the Board and committees on which he served, and five of the six then-serving members of the Board of Directors attended the Company’s 2008 annual meeting of shareholders, although the Company has no formal policy requiring them to do so.
The Audit Committee
During 2008, the Audit Committee consisted of Oscar Holzmann, Chairman, D. Keith Cobb, Earl Pertnoy and Neil Sterling. During January 2009, Earl Pertnoy, who served as a member of the Board of Directors of the Company or its predecessors since 1978, passed away. As a result, the Audit Committee currently consists of Oscar Holzmann, Chairman, D. Keith Cobb and Neil Sterling. The Board has determined that all of the members of the Audit Committee are “financially literate” and “independent” within the meaning of the NYSE Arca listing standards and applicable Securities and Exchange Commission (“SEC”) rules and regulations. Mr. Holzmann, the Chairman of this Committee, and D. Keith Cobb are both qualified as “audit committee financial experts” within the meaning of SEC regulations. The Audit Committee met seven times during 2008 and its members also held various informal conference calls and meetings as a committee. The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of the Company’s independent auditor. Additionally, the Audit Committee assists Board oversight of: (i) the integrity of the Company’s financial statements; (ii) the Company’s compliance with legal and regulatory requirements; (iii) the qualifications, performance and independence of the Company’s independent auditor; and (iv) the performance of the Company’s internal audit function. In connection with these oversight functions, the Audit Committee receives reports from and meets with the Company’s internal audit group, management and independent auditor. The Audit Committee receives information concerning internal control over financial reporting and any deficiencies in such control and has adopted a complaint monitoring procedure that enables confidential and anonymous reporting to the Committee of concerns regarding questionable accounting or auditing matters. A report from the Audit Committee is included in this Proxy Statement on page 26.
The Compensation Committee
During 2008, the Compensation Committee consisted of Earl Pertnoy, Chairman, D. Keith Cobb, Oscar Holzmann and Neil Sterling. As a result of Mr. Pertnoy’s death during January 2009, the Compensation Committee currently consists of Neil Sterling, who was appointed Chairman of the Committee during March 2009,
D. Keith Cobb and Oscar Holzmann. All of the members of the Compensation Committee are “independent” within the meaning of the NYSE Arca listing standards. In addition,this table includes the outstanding securities beneficially
owned by the executive officers and directors and the number of shares owned by
directors and executive officers as a group.
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~~~~~~~~~~~~~~~~~~~~~~
(1) Amount and nature of beneficial ownership and percent of class include
shares that may be acquired within 60 days pursuant to exercise of stock
options to purchase Class B Common Stock as follows: Alan B. Levan
1,270,407 shares, John E. Abdo 1,350,000 shares, Glen R. Gilbert 142,500
shares, and Earl Pertnoy 71,250 shares.
(2) The Company owns 45.5% of I.R.E. Realty Advisory Group, Inc.
(3) The Company may be deemed to be controlled by Alan B. Levan and John E.
Abdo who collectively may be deemed to have an aggregate beneficial
ownership of 68.6%each member of the outstanding common stock of the Company. Levan
Enterprises, Ltd.Compensation Committee is a controlling and majority shareholder of I.R.E.
Realty Advisors, Inc. and I.R.E. Properties, Inc. and may be deemed to be
the controlling shareholder of I.R.E. Realty Advisory Group, Inc. and
Florida Partners Corporation. Levan Enterprises, Ltd. is a limited
partnership whose sole general partner is Levan General Corp., a
corporation 100% owned by Alan B. Levan. Therefore, Mr. Levan may be deemed
to be the beneficial owner of the shares of Common Stock owned by such
entities. Additionally, Mr. Levan may be deemed to be the beneficial owner
of 3,300 shares of Class A Common Stock and 1,200 shares of Class B Common
Stock held of record by Mr. Levan's wife and 1,270,407 shares of Class B
Common Stock which can be acquired within 60 days pursuant to stock options
D. Keith Cobb and Oscar Holzmann. All of the members of the Compensation Committee are “independent” within the meaning of the NYSE Arca listing standards. In addition,
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“Non-Employee Director” as defined in addition to his personal holdings of Common Stock, for an aggregate
beneficial ownership of 2,940,483 shares of Class A Common Stock (45.41%)
and 2,339,673 shares of Class B Common Stock (44.85%).
-3-
(4) Dr. Wertheim's ownership was reported in a Rebuttal of Control Agreement
filed on December 20, 1996 with the Office of Thrift Supervision (as
adjusted for stock splits since the date of filing). The Rebuttal of
Control Agreement indicates that Dr. Wertheim has no intention to manage or
control, directly or indirectly, the Company. Dr. Wertheim's mailing
address is 191 Leucadendra Drive, Coral Gables, Florida 33156.
(5) Mailing address is 1750 East Sunrise Boulevard, Fort Lauderdale, Florida
33304.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) ofRule 16b-3 under the Securities Exchange Act of 1934, requiresas amended (the “Exchange Act”), and an “outside director” as defined for purposes of Section 162(m) of the Company'sInternal Revenue Code of 1986, as amended (the “Code”). The Compensation Committee met six times during 2008. The Compensation Committee provides assistance to the Board in fulfilling its responsibilities relating to the compensation of the Company’s executive officers. It determines the compensation of the Chief Executive Officer and, after reviewing the compensation recommendations of the Chief Executive Officer, determines the compensation of the Company’s other executive officers. It also administers the Company’s equity-based compensation plans.
The Nominating/Corporate Governance Committee
During 2008, the Nominating/Corporate Governance Committee consisted of Neil Sterling, Chairman, D. Keith Cobb, Oscar Holzmann and Earl Pertnoy. As a result of Mr. Pertnoy’s death during January 2009, the Nominating/Corporate Governance Committee currently consists of Neil Sterling, Chairman, D. Keith Cobb and Oscar Holzmann. All of the members of the Nominating/Corporate Governance Committee are considered to be “independent” within the meaning of the NYSE Arca listing standards. The Nominating/Corporate Governance Committee met two times during 2008. The Nominating/Corporate Governance Committee is responsible for assisting the Board in identifying individuals qualified to become directors, making recommendations of candidates for directorships, developing and recommending to the Board a set of corporate governance principles for the Company, overseeing the evaluation of the Board and management, overseeing the selection, composition and evaluation of the committees of the Board of Directors and overseeing the management continuity and succession planning process.
Generally, the Nominating/Corporate Governance Committee will identify director candidates through the business and other organization networks of the directors and executive officers, and persons who beneficially own more than ten
percent of a registered classmanagement. Candidates for director will be selected on the basis of the Company's equity securities,contributions the Nominating/Corporate Governance Committee believes that those candidates can make to filethe Board and to management and on such other qualifications and factors as the Nominating/Corporate Governance Committee considers appropriate. In assessing potential new directors, the Nominating/Corporate Governance Committee seeks individuals from diverse professional backgrounds who provide a broad range of experience and expertise. Board candidates should have a reputation for honesty and integrity, strength of character, mature judgment and experience in positions with a high degree of responsibility. In addition to reviewing a candidate’s background and accomplishments, candidates for director nominees are reviewed in the SEC initial reports of ownership and reports of changes in ownershipcontext of the Common Stockcurrent composition of the Board and the evolving needs of the Company. CopiesThe Company also requires that its directors be able to dedicate the time and resources sufficient to ensure the diligent performance of their duties on the Company’s behalf, including attending Board and applicable committee meetings. If the Nominating/Corporate Governance Committee believes a candidate would be a valuable addition to the Board, it will recommend the candidate’s election to the full Board. During 2008, the Nominating/Corporate Governance Committee did not recommend a newly identified candidate for election to the Board.
Under the Company’s Bylaws, nominations for directors may be made only by or at the direction of the Board of Directors, or by a shareholder entitled to vote who delivers written notice (along with certain additional information specified in the Company’s Bylaws) not less than 90 nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting of shareholders. For the Company’s 2010 annual meeting of shareholders, the Company must receive this notice between January 19 and February 18, 2010.
Executive Sessions of Non-Management and Independent Directors
The Company’s non-management directors, all of whom are considered to be “independent” within the meaning of the NYSE Arca listing standards, met two times in executive session of the Board in which management directors and other members of management did not participate. Earl Pertnoy was the presiding director for these sessions. The non-management directors have scheduled regular meetings in April and September of each year and may schedule additional meetings without management present as they determine to be necessary. As a result of Mr. Pertnoy’s death during January 2009, Neil Sterling has been selected to be the presiding director for future executive sessions of non-management directors.
5
Communications with the Board of Directors and Non-Management Directors
Interested parties who wish to communicate with the Board of Directors, any individual director or the non-management directors as a group can write to the Company’s Secretary at BFC Financial Corporation, 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309. If the person submitting the letter is a shareholder, the letter should include a statement indicating such. Depending on the subject matter, the Company will:
| • | forward the letter to the director or directors to whom it is addressed; | |
| • | attempt to handle the inquiry directly if it relates to routine or ministerial matters, including requests for information; or | |
| • | not forward the letter if it is primarily commercial in nature or if it is determined to relate to an improper or irrelevant topic. |
A member of management will, at each meeting of the Board, present a summary of all such reports filed withletters received since the SEC are
required to be furnishedlast meeting that were not forwarded to the Company. Board and will make those letters available to the Board upon request.
Code of Ethics
The Company has a Code of Business Conduct and Ethics that applies to all directors, officers and employees of the Company, including its principal executive officer, principal financial officer and principal accounting officer. The Company will post amendments to or waivers from the Code of Business Conduct and Ethics (to the extent applicable to the Company’s principal executive officer, principal financial officer or principal accounting officer) on its website atwww.bfcfinancial.com. There were no such waivers from the Code of Business Conduct and Ethics during 2008. During April 2008, the Company made ministerial amendments to the Code of Business Conduct and Ethics, and the amended Code of Business Conduct and Ethics is posted on the Company’s website atwww.bfcfinancial.com.
Section 16(a) Beneficial Ownership Reporting Compliance
Based solely on the Company'supon a review of the copies of suchthe forms furnished to the Company and written representations that no other reports it has received,were required, the Company believes that, all of its
executive officers, directors and greater than ten percent beneficial owners
complied with all filing requirements applicable to them with respect to
transactions during the year ended December 31, 2001.
ELECTION OF DIRECTORS
The bylaws2008, all filing requirements under Section 16(a) of the Exchange Act applicable to its officers, directors and greater than 10% beneficial owners were complied with on a timely basis.
PROPOSALS AT THE ANNUAL MEETING
| 1) | PROPOSAL FOR ELECTION OF DIRECTOR |
During 2008, the Board of Directors consisted of six directors. As described above, during January 2009, Earl Pertnoy, who served as a director of the Company or its predecessors since 1978, passed away. As a result, the Board of Directors currently consists of five directors. The directors are divided into three classes, each of which has a three-year term, expiring in annual succession. The Company’s Bylaws provide that the Board of Directors shall consist of notno less than three nor more than twelve members divided into three classes.directors. The Board currently consistsspecific number of three members. The termsdirectors is set from time to time by resolution of two directors expirethe Board.
One director, D. Keith Cobb, will be elected at the Annual Meeting for the term expiring in 2012. Mr. Cobb was recommended for re-election by the Nominating/Corporate Governance Committee and it is therefore necessaryhas consented to elect two directors to fill
such positions until their respective successors have been elected and
qualified. Director Carl E.B. McKenry, whoseserve for the term would have expired in 2003,
died during 2001. Accordingly, the Board of Directors has nominated Earl Pertnoyindicated. If Mr. Cobb should become unavailable to serve as a director, the Board may designate a substitute nominee. In that case, the persons named as proxies will vote for the substitute nominee designated by the Board. Except as otherwise indicated, neither Mr. Cobb nor any of the directors continuing in office listed below have had any change in principal occupation or employment during the class whose term expires at the 2003 Annual
Meeting of Shareholders, andpast five years.
6
The Director Standing For Election is:
TERM ENDING IN 2012:
| D. KEITH COBB | Director since 2004 |
D. Keith Cobb, age 68, has nominated John E. Abdo to serveserved as a director
inbusiness consultant and strategic advisor to a number of companies since 1996. In addition, Mr. Cobb completed a six-year term on the class whose term expires at the 2005 Annual Meeting of Shareholders. Each
nominee is currently a memberBoard of the Company's BoardFederal Reserve Bank of Directors. AllMiami in 2002. Mr. Cobb spent thirty-two years as a practicing certified public accountant at KPMG LLP, and was Vice Chairman and Chief Executive Officer of Alamo Rent A Car, Inc. from 1995 until its sale in 1996. Mr. Cobb also serves on the Boards of Directors are to serve untilof BankAtlantic Bancorp, Inc. (“BankAtlantic Bancorp”), Alliance Data Systems Corporation and several private companies.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE ELECTION OF D. KEITH COBB TO THE BOARD OF DIRECTORS.
The Directors Continuing In Office Are:
TERMS ENDING IN 2010:
| ALAN B. LEVAN | Director since 1978 |
Alan B. Levan, age 64, formed the election and qualification of their respective
successors.
Except as disclosed elsewhere in this Proxy Statement,I.R.E. Group (predecessor to the Company's
knowledge, there are no arrangements or understandings between the Company and
any person pursuant to which such personCompany) in 1972. Since 1978, he has been or will be elected a director
and there are no familial relationships between any directors and officers of
the Company.
Unless otherwise directed, each proxy executed and returned by a stockholder
will be voted for the election of the nominees shown below.
The Board of Directors recommends that holders of Class B Common Stock vote FOR
the election of each of the nominees for Director.
-4-
Board Of Directors
The following information is provided for each of the Company's current
directors.
Name Age Director Since Term Expires
---- --- -------------- ------------
John E. Abdo 58 1988 2002
Alan B. Levan 57 1978 2004
Earl Pertnoy 75 1978 2002
Mr. Pertnoy is nominated to serve a one-year term expiring at the 2003 Annual
Meeting of Shareholders and Mr. Abdo is nominated to serve a three-year term
expiring at the 2005 Annual Meeting of Shareholders.
The principal occupation and certain other information with respect to each
director, including the nominees are set forth below.
JOHN E. ABDO has been principally employed as Vice Chairman of BankAtlantic
since April 1987, Chairman of the Board, President and Chief Executive CommitteeOfficer of the Company or its predecessors. He has been Chairman of the Board and Chief Executive Officer of BankAtlantic Bancorp since October 1985.1994 and Chairman of the Board of BankAtlantic, BankAtlantic Bancorp’s federal savings bank subsidiary, since 1987. He has been Chairman of the Board and Chief Executive Officer of Woodbridge Holdings Corporation (“Woodbridge”) since 1985 and Chairman of Bluegreen Corporation (“Bluegreen”) since 2002.
| NEIL STERLING | Director since 2003 |
Neil Sterling, age 57, has been the principal of The Sterling Resources Group, Inc., a business development-consulting firm in Fort Lauderdale, Florida, since 1998.
TERMS ENDING IN 2011:
| JOHN E. ABDO | Director since 1988 |
John E. Abdo, age 65, has been a director of the Company since 1988 and Vice Chairman of the Board of the Company since 1993. He has been Vice Chairman of BankAtlantic since April 1987 and Chairman of the Executive Committee of BankAtlantic since October 1985. He has been a director and Vice Chairman of the Board of BankAtlantic Bancorp Inc. since 1994, a director of
BankAtlantic since 1984 and President of Levitt, LLC ("Levitt"), a wholly owned
subsidiary of BankAtlantic, since 1985. He has been President and Chief
Executive Officer of the Abdo Companies, Inc., a real estate development,
construction and real estate brokerage firm, for more than five years. He is
also a director of Benihana, Inc., a national restaurant chain.
ALAN B. LEVAN formed the I.R.E. Group (predecessor to the Company) in 1972.
Since 1978, he has been the Chairman of the Board, President, and Chief
Executive Officer of the Company or its predecessors. He is Chairman of the
Board and President of I.R.E. Realty Advisors, Inc., I.R.E. Properties, Inc.,
I.R.E. Realty Advisory Group, Inc., U.S. Capital Securities, Inc., and Florida
Partners Corporation. He is Chairman of the Board, President and Chief Executive
Officer of BankAtlantic Bancorp, Inc., the holding company for BankAtlantic
since 1994 and President andVice Chairman of the Board of BankAtlanticWoodbridge since 1987.April 2001. He is an individual general partner and an officer and a directoralso Vice Chairman of the
corporate general partner of a public limited partnership that is affiliated
with the Company.
EARL PERTNOY has for more than the past five years been a real estate investor
and developer. He has been a director of the Company and its predecessor
companies since 1978 and is also a director of the corporate general partner of
a public limited partnership that is affiliated with the Company.
Meetings And Committees Of The Board Of Directors
During 2001, the Board of Directors held seven meetings. No director attended
fewer than seventy-five percent (75%) of the total number of meetings of the Board of Directors or the committees onof Benihana, Inc. (“Benihana”), a publicly held company which such Boardoperates Asian-themed restaurant chains, and has been a director and Vice Chairman of Bluegreen since 2002. He is also a member served during
this period.
-5-
The Members of the Audit Committee for 2001 were Mr. Pertnoy and Mr. McKenry,
who died during 2001. The Audit Committee meets quarterly to consider the
findings of the Company's independent auditors and to evaluate policies and
procedures relating to internal controls. The Audit Committee held four meetings
during the year ended December 31, 2001.
The Members of the Compensation Committee for 2001 were Earl Pertnoy and Carl
E.B. McKenry. The Compensation Committee held one meeting during 2001. The
primary purpose of the Compensation Committee is to establish and implement
compensation policy and programs for the Company's executives. The Compensation
Committee also recommends the compensation arrangements for executive officers
and directors. It also serves as the Stock Option Committee for the purpose of
determining incentive stock options to be granted under the Company's Stock
Option Plan.
The Board of Directors has no standing nominating committee.
Compensation Of Directors
Members of the Board of Directors of the CompanyBroward Performing Arts Center Authority (PACA), and he is the former President and a current member of the Board of Directors of the Broward Performing Arts Foundation.
| OSCAR HOLZMANN | Director since 2002 |
Oscar Holzmann, age 66, has been an Associate Professor of Accounting at the University of Miami since 1980. He received his Ph.D. in Business Administration from Pennsylvania State University in 1974.
7
Identification of Executive Officers
The following individuals are executive officers of the Company:
Name | Position | |
| Alan B. Levan | Chairman of the Board, Chief Executive Officer, President and Director | |
| John E. Abdo | Vice Chairman of the Board and Director | |
| John K. Grelle | Executive Vice President and Chief Financial Officer | |
| Maria R. Scheker | Chief Accounting Officer |
All executive officers serve until they resign or are replaced or removed by the Board of Directors.
The following additional information is provided for the executive officers shown above who are not employeesdirectors of the Company:
John K. Grelle, age 65, joined the Company as acting Chief Financial Officer on January 11, 2008 and was appointed Executive Vice President and Chief Financial Officer of the Company receive $1,750 per monthon May 20, 2008. Mr. Grelle was also appointed Executive Vice President, Chief Financial Officer and principal accounting officer of Woodbridge on May 20, 2008. Mr. Grelle previously served as a Partner of Tatum, LLC, an executive services firm. From 2003 through October 2007, when Mr. Grelle joined Tatum, LLC, Mr. Grelle was the founder and principal of a business formation and strategic development consulting firm. From 1996 through 2003, Mr. Grelle served as Senior Vice President and Chief Financial Officer of ULLICO Inc. and, from 1993 through 1995, he served as Managing Director of DCG Consulting. Mr. Grelle has also been employed in various other executive and financial positions throughout his career, including Chairman and Chief Executive Officer of Old American Insurance Company, Controller of the financial services division of American Can Company (later known as Primerica), Chairman, President and Chief Executive Officer of National Benefit Life, a subsidiary of Primerica, President of Bell National Life, Senior Vice President and Chief Financial Officer of American Health and Life, Controller of Sun Life America and Director of Strategic Planning and Budgeting for serving onITT Hamilton Life. Mr. Grelle is a former member of the Company's Board of Directors. Additionally, membersDirectors of the Audit Committee receive a feeN.Y. Council of $1,000
per Audit Committee meeting attended. Other than such compensation, there are no
other arrangements pursuant to which any director is compensated for his
services as such.
Identification And Background Of Executive Officers And Certain Significant
Employees
The Executive OfficersLife Insurers.
Maria R. Scheker, age 51, was appointed Chief Accounting Officer of the Company are as follows:
Name Age Position
---- --- --------in April 2007. Ms. Scheker joined the Company in 1985 and has held various positions with the Company during this time, including Assistant Controller from 1993 through 2003. Ms. Scheker was appointed Controller of the Company in 2003 and Senior Vice President of the Company in March 2006. Ms. Scheker has been a certified public accountant in the State of Florida since 2003.
Certain Relationships and Related Transactions
BFC may be deemed to be the controlling shareholder of BankAtlantic Bancorp and Woodbridge by virtue of its ownership of shares representing 59% of the total voting power of each such company. BFC also has a direct non-controlling interest in Benihana and, through Woodbridge, an approximately 29% indirect ownership interest in Bluegreen. BFC may be deemed to be controlled by Alan B. Levan 57 President,and John E. Abdo, BFC’s Chairman of the Board, Chief Executive Officer and Director
John E. Abdo 58President and BFC’s Vice Chairman, respectively, who collectively may be deemed to beneficially own shares of BFC’s Class A Stock and Class B Stock representing 73.8% of BFC’s total voting power. See the Boardsection of this Proxy Statement entitled “Security Ownership of Certain Beneficial Owners and Director
Glen R. Gilbert 57 Executive Vice President, Chief Financial and
Accounting Officer and Secretary
The following persons are executive officers of the Company's principal
subsidiary, BankAtlantic Bancorp, Inc. Positions indicated are those held at
BankAtlantic Bancorp, Inc.
Name Age Position at BankAtlantic Bancorp, Inc.
---- --- ---------------------------------------
Alan B. Levan 57 Director, Chairman of the Board and
Chief Executive Officer
John E. Abdo 58 Director, Vice Chairman of the Board
James A. White 58 Executive Vice President and Chief
Financial Officer
All such officers will serve until they resign or are replaced by their
respective Board of Directors.
-6-
Background Of Executive Officers
ALAN B. LEVAN - See "Board Of Directors."
JOHN E. ABDO - See "Board Of Directors."
GLEN R. GILBERT has been Executive Vice President of the Company since July
1997. In May 1987, he was appointed Chief Financial and Accounting Officer and,
in October 1988, was appointed Secretary. He joined the Company in November 1980
as Vice President and Chief Accountant. He has been a certified public
accountant since 1970. He serves as an officer of Florida Partners Corporation
and of the corporate general partner of a public limited partnership that is
affiliated with the Company. He has been Vice President of Levitt since 1997.
The principal occupation and certain otherManagement” below for further information with respect to the share ownership of each of Messrs. Levan and Abdo. Messrs. Levan and Abdo are each executive officers and directors of BankAtlantic Bancorp Inc.and Woodbridge and directors of Bluegreen. Mr. Abdo is also a director of Benihana.
8
The following table presents BFC, BankAtlantic Bancorp, Woodbridge and Bluegreen related party transactions incurred at, and for the years ended, December 31, 2008 and 2007.
| At and For the Year Ended December 31, 2008 | ||||||||||||||||||||
| BankAtlantic | ||||||||||||||||||||
| BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Shared service receivable (payable) | (a | ) | $ | 398 | (175 | ) | (115 | ) | (108 | ) | ||||||||||
| Shared service income (expense) | (a | ) | $ | 3,157 | (1,593 | ) | (1,135 | ) | (429 | ) | ||||||||||
| Facilities cost | (a | ) | $ | (245 | ) | 271 | (101 | ) | 75 | |||||||||||
| Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 8 | (80 | ) | 72 | — | ||||||||||||
| Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 263 | (4,696 | ) | 4,433 | — | ||||||||||||
| At and For the Year Ended December 31, 2007 | ||||||||||||||||||||
| BankAtlantic | ||||||||||||||||||||
| BFC | Bancorp | Woodbridge | Bluegreen | |||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Shared service receivable (payable) | (a | ) | $ | 312 | (89 | ) | (119 | ) | (104 | ) | ||||||||||
| Shared service income (expense) | (a | ) | $ | 2,855 | (1,406 | ) | (1,006 | ) | (443 | ) | ||||||||||
| Facilities cost | (a | ) | $ | (272 | ) | 220 | — | 52 | ||||||||||||
| Interest income (expense) from cash balance/securities sold under agreements to repurchase | (b | ) | $ | 38 | (185 | ) | 147 | — | ||||||||||||
| Cash and cash equivalents and (securities sold under agreements to repurchase) | (b | ) | $ | 1,217 | (7,335 | ) | 6,118 | — | ||||||||||||
| (a) | Pursuant to the terms of shared service agreements between BFC, BankAtlantic Bancorp and Woodbridge, subsidiaries of BFC provide shared service operations in the areas of human resources, risk management, investor relations, executive office administration and other services to BankAtlantic Bancorp and Woodbridge. Additionally, BFC provides certain risk management and administrative services to Bluegreen. The costs of shared services are allocated based upon the usage of the respective services. Also, as part of the shared service arrangement, BFC pays BankAtlantic Bancorp and Bluegreen for office facilities costs relating to BFC and its shared service operations. | |
| In May 2008, BFC and BFC Shared Service Corporation (“BFC Shared Service”), a wholly-owned subsidiary of BFC, entered into office lease agreements with BankAtlantic under which BFC and BFC Shared Service agreed to pay BankAtlantic an annual rent of approximately $294,000 for office space in BankAtlantic’s corporate headquarters. In May 2008, BFC also entered into an office sub-lease agreement with Woodbridge for office space in BankAtlantic’s corporate headquarters pursuant to which Woodbridge agreed to pay BFC an annual rent of approximately $152,000. | ||
| (b) | BFC and Woodbridge entered into securities sold under agreements to repurchase transactions with BankAtlantic in the aggregate of approximately $4.7 million and $7.3 million at December 31, 2008 and 2007, respectively. Interest recognized in connection with these transactions was approximately $80,000 and $185,000 for the years ended December 31, 2008 and 2007, respectively. These transactions have similar terms as BankAtlantic’s agreements with unaffiliated parties. Additionally, at December 31, 2008, BankAtlantic facilitated the placement of $49.9 million of certificates of deposits insured by the Federal Deposit Insurance Corporation (the “FDIC”) with other insured depository institutions on Woodbridge’s behalf through the Certificate of Deposit Account Registry Service (“CDARS”) program. The CDARS program facilitates the placement of funds into certificates of deposits issued by other financial institutions in increments of less than the standard FDIC insurance maximum to insure that both principal and interest are eligible for full FDIC insurance coverage. |
In March 2008, BankAtlantic entered into an agreement with Woodbridge to provide information technology support to Woodbridge at a cost of $10,000 per month and a one-timeset-up charge of $17,000. During the year ended December 31, 2008, Woodbridge paid BankAtlantic the one-time set forth below.
ALAN B. LEVAN - See "Board Of Directors."
JOHN E. ABDO - See "Board Of Directors."
JAMES A. WHITE is Executive Vice Presidentup charge of $17,000 and Chief Financial Officerhosting fees
9
of approximately $73,000, as well as fees of approximately $23,000 for other information technology services provided by BankAtlantic.
BankAtlantic Bancorp in prior periods issued options to acquire shares of BankAtlantic Bancorp’s Class A Common Stock to employees of Woodbridge prior to the spin-off of Woodbridge by BankAtlantic Bancorp. Additionally, employees of BankAtlantic Bancorp Inc.have transferred to affiliate companies and BankAtlantic. He joined BankAtlantic Bancorp Inc. andhas elected, in accordance with the terms of BankAtlantic in January 2000. PriorBancorp’s stock option plans, not to joiningcancel the stock options held by those former employees. BankAtlantic Bancorp Inc. and BankAtlantic, Mr. White was Chief Financial Officeraccounts for these options to former employees as employee stock options because these individuals were employees of BOK Financial
Corporation.
Executive Compensation
The following table and the notes thereto set forth information with respect to
the annual compensation paid by the Company and its subsidiaries, excluding BankAtlantic Bancorp Inc. and its subsidiaries, for services rendered in all
capacitieson the grant date. During the year ended December 31, 2007, former employees exercised 2,613 options to acquire BankAtlantic Bancorp’s Class A Common Stock at a weighted average exercise price of $42.80. There were no options exercised by former employees during the year ended December 31, 20012008.
BankAtlantic Bancorp’s options outstanding to eachformer employees consisted of the executive
officersfollowing as of December 31, 2007:
| BankAtlantic | ||||||||
| Bancorp’s | Weighted | |||||||
| Class A | Average | |||||||
| Common | Exercise | |||||||
| Stock | Price | |||||||
| Options outstanding | 53,789 | $ | 49.50 | |||||
| Options non-vested | 30,917 | $ | 61.60 | |||||
BankAtlantic Bancorp’s options outstanding to former employees consisted of the Companyfollowing as well as total annual compensation paid to each of those individuals for the prior two years.
-7-
~~~~~~~~~~~
(1) Does not include salary, bonuses and other compensation, respectively, paid
by BankAtlantic to Mr. Levan in the amounts of $[xx], $[xx] and $[xx] for
2001, $387,890, $312,624 and $137,635 for 2000 and $372,705, $20,000 and
$141,467 for 1999. BankAtlantic Bancorp, Inc. paid no additional amounts to
Mr. Levan. Mr. Levan was granted options to acquire BankAtlantic Bancorp,
Inc. stock in each of the periods.
(2) Does not include salary, bonuses and other compensation, respectively, paid
by BankAtlantic and subsidiaries to Mr. Abdo in the amounts of $[xx], $[xx]
and $[xx] for 2001, $287,901, $190,000 and $15,840 for 2000 and $190,739,
$0 and $10,640 for 1999. BankAtlantic Bancorp, Inc. paid no additional
amounts to Mr. Abdo. Mr. Abdo was granted options to acquire BankAtlantic
Bancorp, Inc. stock in each of the periods.
(3) Does not include salary and bonus, respectively, paid by Levitt
Corporation, a subsidiary of BankAtlantic, to Mr. Gilbert in the amounts of
$[xx] and $[xx] for 2001 and $93,130 and $17,250 in 2000. BankAtlantic
Bancorp, Inc. paid no additional amounts to Mr. Gilbert. Mr. Gilbert was
granted options to acquire BankAtlantic Bancorp, Inc. stock in 2000 and
2001.
(4) Represents reimbursements or payments for life and disability insurance.
(5) Payments were also made to the Abdo Companies, Inc., a company controlled
by Mr. Abdo. See "Certain Relationships and Related Transactions."
Other than Mr. Levan and Mr. Abdo, executive officers of BankAtlantic Bancorp,
Inc. and BankAtlantic do not have significant executive responsibilities with
respect to key policy decisions of the Company.
-8-
Options/SAR Grants
December 31, 2008:
| BankAtlantic | ||||||||
| Bancorp’s | Weighted | |||||||
| Class A | Average | |||||||
| Common | Exercise | |||||||
| Stock | Price | |||||||
| Options outstanding | 53,789 | $ | 48.46 | |||||
| Options non-vested | 13,610 | $ | 92.85 | |||||
During the year ended December 31, 2001, there were no individual grants of
stock2007, BankAtlantic Bancorp issued to BFC employees that performed services for BankAtlantic Bancorp options to acquire 9,800 shares of BankAtlantic Bancorp’s Class A Common Stock at an exercise price of $46.90. These options vest in five years and expire ten years from the named executivesgrant date. BankAtlantic Bancorp recorded $26,000 and $13,000 of service provider expense for the years ended December 31, 2008 and 2007, respectively.
BFC and its subsidiaries, including BankAtlantic Bancorp, utilized certain services of Ruden, McClosky, Smith, Schuster & Russell, P.A. (“Ruden, McClosky”). Bruno DiGiulian, a director of BankAtlantic Bancorp, was of counsel at Ruden, McClosky prior to his retirement in the Compensation Table pursuant to the
Company's Stock Option Plan. The Company has not granted2006. Fees aggregating $75,000 and does not currently
grant stock appreciation rights.
The following table sets forth information concerning individual grants of stock
options$274,000 were paid by BankAtlantic Bancorp Inc. to Ruden, McClosky during the named executivesyears ended December 31, 2008 and 2007, respectively.
Levitt and Sons, LLC, a former wholly-owned subsidiary of Woodbridge (“Levitt and Sons”), utilized the services of Conrad & Scherer, P.A., a law firm in the Summary
Compensation Table pursuantwhich William R. Scherer, a member of Woodbridge’s Board of Directors, is a member, and paid fees aggregating $22,000 to the stock option plans of BankAtlantic Bancorp,
Inc.this firm during the year ended December 31, 2001. BankAtlantic Bancorp,2007.
On November 19, 2007, BFC’s shareholders approved the merger of I.R.E Realty Advisory Group, Inc. has not
granted(“I.R.E. RAG”), a 45.5% subsidiary of BFC, with and does not currently grant stock appreciation rights.
~~~~~~~~
(1) All options grants are to acquireinto BFC. The sole assets of I.R.E. RAG were 4,764,285 shares of BankAtlantic Bancorp, Inc.BFC’s Class A CommonStock and 500,000 shares of BFC’s Class B Stock. All options vestIn connection with the merger, the shareholders of I.R.E. RAG, other than BFC, received an aggregate of approximately 2,601,300 shares of BFC’s Class A Stock and 273,000 shares of BFC’s Class B Stock, representing their respective pro rata beneficial ownership interests in 2006.
(2) Amounts for the named executive have been calculatedshares of BFC’s Class A Stock and Class B Stock owned by multiplyingI.R.E. RAG, and the exercise price4,764,285 shares of BFC’s Class A Stock and 500,000 shares of BFC’s Class B Stock that were owned by the annual appreciation rate shown (compounded for the
remaining termI.R.E. RAG were canceled. The shareholders of I.R.E. RAG, other than BFC, were Levan Enterprises, Ltd. and I.R.E. Properties, Inc., each of which is an affiliate of Alan B. Levan, Chief Executive Officer, President and Chairman of the options), subtracting the exercise price per share
and multiplying the gain per share by the numberBoard of shares covered by the
options.Directors of BFC. The dollar amounts under these columns are the resulttransaction was consummated on November 30, 2007.
10
Certain of calculations based upon assumed rates of annual compounded stock price
appreciation specified by regulation and are not intended to forecast
actual future appreciation rates of the Company's stock price.
Aggregated Option/SAR Exercises And Fiscal Year End Option/SAR Value Table
BFC’s affiliates, including its executive officers, have independently made investments with their own funds in a limited partnership that BFC sponsored in 2001.
SUMMARY COMPENSATION TABLE
The following table sets forth as to each ofcertain summary information concerning compensation which, during the named executive officers
information with respect to the number of shares of the Company's Class B Common
Stock acquired upon exercise of options during 2001 and underlying unexercised
options atfiscal years ended December 31, 2001.
-9-
(1) Based upon a price of $5.65, which was2008 and 2007, the price of the last sale as
reported by the OTC Market Report for 2001.
The following table sets forth as to each of the named executive officers
information with respect to the number of shares ofCompany, BankAtlantic Bancorp, Inc.
Class A Common Stock acquired upon exerciseBankAtlantic and Woodbridge paid to or accrued on behalf of options during 2001 and
underlying unexercised options at December 31, 2001. BankAtlantic Bancorp, Inc.
has not granted and does not currently grant stock appreciation rights.
(1) Based upon a fair market value of $9.18 at December 31, 2001, which was
the closing price for BankAtlantic Bancorp, Inc. Class A Common Stock as
reported on the New York Stock Exchange on December 31, 2001.
Long-Term Incentive Plan ("LTIP") Awards Table
The Company has made available a profit-sharing plan to all of its employees
(which does not include employees of BankAtlantic Bancorp, Inc.) who meet
certain minimum requirements. The Company is not required to make any
contribution and the amount of the Company 's contribution is determined each
year by the Board of Directors. It requires a uniform allocation to each
employee of 0% to 15% of compensation (with the maximum compensation considered
being $50,000). Vesting is in increments over a 6-year period to 100%. Alan B. Levan, and Glen R. Gilbert are 100% vested. John E. Abdo is 0% vested. During
2001, the accounts for each of the above named individuals were credited with a
$4,480 contribution.
-10-
Stock Performance Graph And Compensation Committee Report
Notwithstanding contrary statements set forth in any of the Company's previous
filings under the Securities Act of 1933 or the Securities Exchange Act of 1934
that might incorporate future filings, including this proxy statement, the Stock
Performance Graph and the Compensation Committee Report set forth below shall
not be incorporated by reference into such filings.
Stock Performance Graph
The following graph provides an indicator of cumulative total stockholder
returns for the Company as compared with the Wilshire 5000 Total Market Index
and the NASDAQ Bank Index:
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL]
*Assumes $100 invested on December 31, 1996.
Compensation Committee Report
Directors Pertnoy and McKenry were designated by the Board of Directors to serve
on the Compensation Committee during 2001. The Compensation Committee provided
the following report on executive compensation.Company’s Chief Executive Officer Compensation
The Compensation Committee of BFC Financial Corporation met to consider the
appropriate compensation package to recommend to the Board of Directors for the
Chairman and President, Alan B. Levan and Glen R. Gilbert and John E. Abdo. At
the meeting the following elements have been developed:
-11-
Executive Compensation Policy - BFC Financial Corporation's overall compensation
philosophy is to retain quality personnel, which is critical to both the
short-term and long-term success of BFC Financial Corporation. In order to
implement that philosophy, BFC Financial Corporation's approach to base
compensation is to offer competitive salaries in comparison to market practices.
General - During 2001 base salaries and other compensation for Mr. Levan and Mr.
Gilbert was increased by approximately 4% and 10%, respectively. Mr. Abdo was
compensated at an annual salary level of $250,000, which was unchanged from the
prior year. Commencing in 2000, a portion of Mr. Gilbert's salary is being paid
by Levitt Corporation, a subsidiary of BankAtlantic. Bonuses were paid for 2001
to compensate executives based on the Company's profitability, stock price and
the achievement of individual performance goals. In deciding compensation
levels, cost of living, market compensation levels and general trends in the
labor market were considered and available market information was used as a
frame of reference for annual salary adjustments.
Stock Options -No Company stock options were granted to executive officers
during 2001. As indicated, options to acquire BankAtlantic Bancorp, Inc. shares
were granted to Messrs Levan, Abdo and Gilbert by the BankAtlantic Bancorp, Inc.
Stock Option Committee based on contributions to BankAtlantic Bancorp, Inc. and
its subsidiaries including Levitt. The Compensation Committee was aware of and
took into account the options in considering the executives overall
compensation. When granted, options are awarded based on an assessment of an
employee's contribution to the success and growth of the Company. Grants of
stock options are based on the level of an executive's position with the company
and evaluation of the executive's past and expected performance, the number of
outstanding and previously granted options and discussions with the executive.
CEO Compensation - In evaluating the performance of the Chief Executive, Mr.
Levan, the committee considered BFC Financial Corporation's net worth, earnings
and stock price. The Committee also considered that Mr. Levan spends
considerable effort and attention in connection with the operations of
BankAtlantic Bancorp, Inc. and BankAtlantic and that the performance of
BankAtlantic Bancorp, Inc. and BankAtlantic has been a substantial factor in the
success of BFC Financial Corporation.
The above report was submitted by Earl Pertnoy.
Audit Committee Report
The Audit Committee of the Board of Directors is responsible for monitoring the
integrity of the Company's consolidated financial statements, its system of
internal controls and the independence and performance of its independent
auditors. |During 2001, Messers Pertnoy and McKenry, both non-employee directors
served on the Audit Committee. The Company's Board of Directors has not adopted
a written charter for the Audit Committee.
Management is responsible for the preparation, presentation and integrity of the
Company's financial statements, the Company's accounting and financial reporting
process, including the system of internal control, and procedures to assure
compliance with applicable accounting
-12-
standards and applicable laws and regulations. The Company's independent
auditors are responsible for auditing those financial statements and expressing
an opinion as to their conformity with generally accepted accounting principles.
Our responsibility is to monitor and review these processes. However, the
Committee is not comprised of professionals engaged in the practice of
accounting or auditing or experts in the field of accounting or auditing,
including, without limitation, auditor independence. The Committee must rely,
without independent verification, on the information provided to it and on the
representations made by management and the independent auditors. Accordingly,
although the Committee consults with and discusses these matters and its
questions and concerns with management and the Company's independent auditors,
its oversight can not provide an independent basis to assure that management has
maintained appropriate accounting and financial reporting principles or
appropriate internal control and procedures consistent with accounting standards
and applicable laws and regulations. Furthermore, the Committee's considerations
and discussions can not assure that the audit of the Company's financial
statements has been carried out in accordance with generally accepted auditing
standards, that the financial statements are presented in accordance with
generally accepted accounting principles or that the Company's auditors are in
fact "independent."
In this context, the Committee held four meetings during fiscal year 2001. The
meetings were designed, among other things, to facilitate and encourage
communication among the Committee, management, and the Company's independent
auditors, KPMG LLP ("KPMG"). The Committee discussed with the Company's
independent auditors their overall scope and plans. The Committee met with the
independent auditors, with and without management present, to discuss the
results of their examinations and their evaluations of the Company's internal
controls.
The Committee has reviewed and discussed the audited consolidated financial
statements for the fiscal year ended December 31, 2001 with management2008, and KPMG.
The Committee has also discussed withJohn E. Abdo and John K. Grelle, who, other than Mr. Levan, were the independent auditors matters required
to be discussed with audit committees under generally accepted auditing
standards, including, among other things, matters related to the conduct of the
audit of the Company's consolidated financial statements and the matters
required to be discussed by Statement on Auditing Standards No. 61, as amended
(Communication with Audit Committees). The Committee's discussions also included
a discussion of the background and experience of the KPMG audit managers
assigned to the Company and the quality control procedures established by KPMG.
The Company's independent auditors also provided to the Committee the written
disclosures and the letter required by Independence Standards Board Standard No.
1 (Independence Discussions with Audit Committees), and the Committee discussed
with the independent auditors their independence from the Company. When
considering KPMG's independence, the Committee was advised that KPMG did not
provide the Company with any services beyond those rendered in connection with
their audit and review of the Company's consolidated financial statements. The
Committee did note however that KPMG provided services to BankAtlantic Bancorp
beyond those rendered in connection with their audit and review of BankAtlantic
Bancorp's financial statements. The Committee also reviewed, among other things,
the amount of fees paid to KPMG directly by the Company for audit services as
well as the amounts paid to KPMG for audit and non-audit services by
BankAtlantic Bancorp, both separately and in the aggregate,
-13-
as these amounts were included in the Company's consolidated financial
statements, as well as the nature of the non-audit services provided to
BankAtlantic Bancorp.
Based on our review and these meetings, discussions and reports, and subject to
the limitations on our role and responsibilities referred to above and in the
Audit Committee Charter, we recommended to the Board of Directors that the
Company's audited consolidated financial statements forCompany’s two most highly compensated executive officers during the fiscal year ended December 31, 20012008. Messrs. Levan, Abdo and Grelle are sometimes hereinafter collectively referred to as the “Named Executive Officers.”
| Change in | ||||||||||||||||||||||||||||||||||
| Pension Value | ||||||||||||||||||||||||||||||||||
| and | ||||||||||||||||||||||||||||||||||
| Nonqualified | ||||||||||||||||||||||||||||||||||
| Non-Equity | Deferred | |||||||||||||||||||||||||||||||||
| Name and Principal | Option | Incentive Plan | Compensation | All Other | ||||||||||||||||||||||||||||||
Position | Source(1) | Year | Salary($) | Bonus($)(2) | Awards($)(3) | Compensation($)(4) | Earnings($)(5) | Compensation($)(6) | Total($) | |||||||||||||||||||||||||
| Alan B. Levan, | BFC | 2008 | 677,375 | — | 279,125 | 267,956 | — | 227,863 | 1,452,319 | |||||||||||||||||||||||||
| Chairman of the | BBX | 2008 | 541,828 | — | 297,721 | 283,055 | 20,934 | 21,771 | 1,165,309 | |||||||||||||||||||||||||
| Board, President | WDGH | 2008 | 151,218 | 500,000 | 401,449 | — | — | 1,500 | 1,054,167 | |||||||||||||||||||||||||
| and Chief | 1,370,421 | 500,000 | 978,295 | 551,011 | 20,934 | 251,134 | 3,671,795 | |||||||||||||||||||||||||||
| Executive Officer(7) | ||||||||||||||||||||||||||||||||||
| BFC | 2007 | 676,345 | — | 312,352 | 809,278 | — | 216,468 | 2,014,443 | ||||||||||||||||||||||||||
| BBX | 2007 | 590,480 | — | 351,664 | 21,793 | 53,905 | 21,000 | 1,038,842 | ||||||||||||||||||||||||||
| WDGH | 2007 | 400,400 | 6,708 | 372,409 | — | — | 1,500 | 781,017 | ||||||||||||||||||||||||||
| 1,667,225 | 6,708 | 1,036,425 | 831,071 | 53,905 | 238,968 | 3,834,302 | ||||||||||||||||||||||||||||
| John E. Abdo, | BFC | 2008 | 660,739 | — | 279,125 | 223,219 | — | — | 1,163,083 | |||||||||||||||||||||||||
| Vice Chairman | BBX | 2008 | 509,274 | — | 198,480 | 281,785 | 12,147 | 9,240 | 1,010,926 | |||||||||||||||||||||||||
| of the Board(7) | WDGH | 2008 | 151,218 | 500,000 | 534,538 | — | — | 307,740 | 1,493,496 | |||||||||||||||||||||||||
| 1,321,231 | 500,000 | 1,012,143 | 505,004 | 12,147 | 316,980 | 3,667,505 | ||||||||||||||||||||||||||||
| BFC | 2007 | 590,480 | — | 312,352 | 594,880 | — | — | 1,497,712 | ||||||||||||||||||||||||||
| BBX | 2007 | 415,140 | — | 234,443 | 15,240 | 25,849 | 21,675 | 712,347 | ||||||||||||||||||||||||||
| WDGH | 2007 | 487,988 | 8,175 | 505,193 | — | — | 303,181 | 1,304,537 | ||||||||||||||||||||||||||
| 1,493,608 | 8,175 | 1,051,988 | 610,120 | 25,849 | 324,856 | 3,514,596 | ||||||||||||||||||||||||||||
| John K. Grelle, | BFC | 2008 | 198,685 | 79,520 | — | — | — | 6,519 | 284,724 | |||||||||||||||||||||||||
| Executive | BBX | 2008 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Vice President and | WDGH | 2008 | 145,191 | 54,880 | — | — | — | — | 200,071 | |||||||||||||||||||||||||
| Chief Financial | ||||||||||||||||||||||||||||||||||
| Officer(8) | 343,876 | 134,400 | — | — | — | 6,519 | 484,795 | |||||||||||||||||||||||||||
| (1) | Amounts identified as BFC represent amounts paid or accrued by the Company, amounts identified as BBX represent amounts paid or accrued by BankAtlantic Bancorp and BankAtlantic and amounts identified as WDGH represent amounts paid or accrued by Woodbridge. | |
| (2) | Amounts for 2008 represent discretionary cash bonuses paid to or accrued on behalf of each Named Executive Officer by Woodbridge (and, for Mr. Grelle, by the Company) based on a subjective evaluation of their overall performance in areas outside those that can be objectively measured from financial results. | |
| (3) | All options are to purchase shares of the respective company’s Class A Common Stock. The amounts for 2008 represent the dollar amounts recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting of stock option grants, including amounts from awards granted prior to the 2008 fiscal year. Assumptions used in the calculation of these amounts are included in footnote 23 to the Company’s audited financial statements for the fiscal year ended December 31, 2008 included in the Company’s Annual Report onForm 10-K filed with the Securities and Exchange Commission on March 31, 2009. There were no forfeitures during 2008. None of the Company, BankAtlantic Bancorp or Woodbridge granted any options to the Named Executive Officers during 2008. |
11
| (4) | Amounts for 2008 represent, with respect to the Company, cash bonuses granted to each of Messrs. Levan and Abdo under the formula-based component of the Company’s 2008 annual incentive program based on the achievement of pre-established, objective individual and company-wide annual financial performance goals. In addition, the 2008 amounts relating to BankAtlantic Bancorp represent (i) cash bonuses paid to each of Messrs. Levan and Abdo under the formula-based component of BankAtlantic Bancorp’s 2008 annual incentive program as a result of the achievement during the first three quarters of 2008 of the quarterly financial performance objectives of such program related to BankAtlantic Bancorp’s core non-interest expense reductions and (ii) cash bonuses of $4,462 and $3,192 earned by Messrs. Levan and Abdo, respectively, under the BankAtlantic Profit Sharing Stretch Plan with respect to the fourth quarter of 2007, but paid to Messrs. Levan and Abdo during the first quarter of 2008. | |
| (5) | Represents the increase in the actuarial present value of accumulated benefits under the Retirement Plan for Employees of BankAtlantic (the “BankAtlantic Retirement Plan”). Additional information regarding the BankAtlantic Retirement Plan is set forth in the narrative accompanying the table entitled “Pension Benefits — 2008” below. | |
| (6) | Items included under “All Other Compensation” for 2008 for each of the Named Executive Officers are set forth in the table below: |
| Levan | Abdo | Grelle | ||||||||||
BFC | ||||||||||||
| Perquisites and other benefits | $ | 74,258 | $ | — | $ | — | ||||||
| Amount paid for life and disability insurance premiums | 135,567 | — | — | |||||||||
| Amount paid for automobile expenses | 18,038 | — | 6,519 | |||||||||
| Total | $ | 227,863 | $ | — | $ | 6,519 | ||||||
BBX | ||||||||||||
| Perquisites and other benefits | $ | 303 | $ | — | $ | — | ||||||
| Insurance premiums | 12,228 | — | — | |||||||||
| Contributions to the retirement and 401(k) plans | 9,200 | 9,200 | — | |||||||||
| Dividends on restricted stock, REIT shares | 40 | 40 | — | |||||||||
| Total | $ | 21,771 | $ | 9,240 | $ | — | ||||||
WDGH | ||||||||||||
| Insurance premiums | $ | 1,500 | $ | 1,500 | $ | — | ||||||
| Management fees paid to Abdo Companies, Inc. | — | 306,240 | — | |||||||||
| Total | $ | 1,500 | $ | 307,740 | $ | — | ||||||
| The value of perquisites and other benefits included in the rows entitled “Perquisites and other benefits” in the table above is calculated based on their incremental cost to the respective company, which is determined based on the actual cost of providing these perquisites and other benefits. All perquisites and other benefits received in 2008 by Mr. Levan from the Company related to his personal use of the Company’s tickets to entertainment and sporting events. | ||
| Amounts included in the row entitled “Insurance premiums” under “BBX” in the table above were paid in connection with BankAtlantic’s Split-Dollar Life Insurance Plan (the “BankAtlantic Split-Dollar Plan”). Additional information regarding the BankAtlantic Split-Dollar Plan is set forth in the narrative accompanying the “Pension Benefits — 2008” table below. | ||
| Mr. Abdo is the principal shareholder and Chief Executive Officer of Abdo Companies, Inc. | ||
| During 2008, each of Messrs. Levan and Abdo received $1,500 as reimbursement for insurance premiums for waiving participation in Woodbridge’s medical, dental and vision plans. These amounts are included in the row entitled “Insurance premiums” under “WDGH” in the table above. | ||
| (7) | During 2008, each of Messrs. Levan and Abdo also received options to acquire 50,000 shares of Bluegreen’s common stock at an exercise price of $9.31 per share, which options are scheduled to vest on May 21, 2013 and expire on May 21, 2018. Each of Messrs. Levan and Abdo were also granted during 2008 71,000 shares of restricted common stock of Bluegreen and options to purchase an additional 71,000 shares of Bluegreen’s common stock at an exercise price of $7.50 per share. These additional options and restricted shares are |
12
| scheduled to vest on May 21, 2013 (and the options are scheduled to expire on May 21, 2015); however, in the event of achange-in-control of Bluegreen at a price of at least $12.50 per share of common stock, a percentage (of up to 100%) of the options and restricted shares will vest depending on both the timing of thechange-in-control and the actual price for a share of Bluegreen’s common stock in the transaction which results in thechange-in-control. The aggregate grant date fair value of the options granted by Bluegreen to each of Messrs. Levan and Abdo during 2008 computed in accordance with FAS 123(R) was $370,700. The grant date fair value of the restricted stock awards granted by Bluegreen to each of Messrs. Levan and Abdo during 2008 computed in accordance with FAS 123(R) was $495,580. | ||
| (8) | Mr. Grelle joined the Company as acting Chief Financial Officer on January 11, 2008 and was appointed Executive Vice President and Chief Financial Officer of the Company on May 20, 2008. Mr. Grelle was also appointed Executive Vice President, Chief Financial Officer and principal accounting officer of Woodbridge on May 20, 2008. Because Mr. Grelle was not a Named Executive Officer of the Company for 2007, no compensation information with respect to Mr. Grelle is provided for 2007. |
13
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END — 2008
The following table sets forth certain information regarding equity-based awards of the Company held as of December 31, 2008 by the Named Executive Officers (other than Mr. Grelle, who does not currently hold, and as of December 31, 2008 did not hold, any equity-based awards of the Company).
| Option Awards | ||||||||||||||||||||
| Equity | ||||||||||||||||||||
| Incentive | ||||||||||||||||||||
| Plan Awards: | ||||||||||||||||||||
| Number of | Number of | Number of | ||||||||||||||||||
| Securities | Securities | Securities | ||||||||||||||||||
| Underlying | Underlying | Underlying | ||||||||||||||||||
| Unexercised | Unexercised | Unexercised | Option | Option | ||||||||||||||||
| Options | Options | Unearned | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | Options | Price | Date | |||||||||||||||
| Alan B. Levan | 210,579 | (1)(3) | — | N/A | $ | 1.84 | 2/7/2013 | |||||||||||||
| — | 93,750 | (1)(4) | 8.40 | 7/28/2014 | ||||||||||||||||
| — | 75,000 | (2)(5) | 8.92 | 7/11/2015 | ||||||||||||||||
| — | 75,000 | (2)(6) | 6.36 | 6/5/2016 | ||||||||||||||||
| — | 75,000 | (2)(7) | 4.44 | 6/4/2017 | ||||||||||||||||
| John E. Abdo | 210,579 | (1)(3) | — | N/A | 1.84 | 2/7/2013 | ||||||||||||||
| — | 93,750 | (1)(4) | 8.40 | 7/28/2014 | ||||||||||||||||
| — | 75,000 | (2)(5) | 8.92 | 7/11/2015 | ||||||||||||||||
| — | 75,000 | (2)(6) | 6.36 | 6/5/2016 | ||||||||||||||||
| — | 75,000 | (2)(7) | 4.44 | 6/4/2017 | ||||||||||||||||
| (1) | Represents options to purchase shares of the Company’s Class B Stock. | |
| (2) | Represents options to purchase shares of the Company’s Class A Stock. | |
| (3) | Vested on February 7, 2008. | |
| (4) | Vests on July 28, 2009. | |
| (5) | Vests on July 11, 2010. | |
| (6) | Vests on June 5, 2011. | |
| (7) | Vests on June 4, 2012. |
14
The following table sets forth certain information regarding equity-based awards of BankAtlantic Bancorp held by Messrs. Levan and Abdo as of December 31, 2008. Mr. Grelle does not currently hold, and as of December 31, 2008 did not hold, any equity-based awards of BankAtlantic Bancorp.
| Option Awards | ||||||||||||||||||||
| Equity | ||||||||||||||||||||
| Incentive | ||||||||||||||||||||
| Plan Awards: | ||||||||||||||||||||
| Number of | Number of | Number of | ||||||||||||||||||
| Securities | Securities | Securities | ||||||||||||||||||
| Underlying | Underlying | Underlying | ||||||||||||||||||
| Unexercised | Unexercised | Unexercised | Option | Option | ||||||||||||||||
| Options(1) | Options(1) | Unearned | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | Options | Price | Date | |||||||||||||||
| Alan B. Levan | 15,676 | (2) | N/A | $ | 42.79 | 3/4/2012 | ||||||||||||||
| 15,676 | (3) | $ | 37.05 | 3/31/2013 | ||||||||||||||||
| 12,000 | (4) | $ | 91.00 | 7/5/2014 | ||||||||||||||||
| 12,000 | (5) | $ | 95.10 | 7/11/2015 | ||||||||||||||||
| 12,000 | (6) | $ | 74.05 | 7/10/2016 | ||||||||||||||||
| 12,000 | (7) | $ | 46.90 | 6/4/2017 | ||||||||||||||||
| John E. Abdo | 10,451 | (2) | $ | 42.79 | 3/4/2012 | |||||||||||||||
| 10,451 | (3) | $ | 37.05 | 3/31/2013 | ||||||||||||||||
| 8,000 | (4) | $ | 91.00 | 7/5/2014 | ||||||||||||||||
| 8,000 | (5) | $ | 95.10 | 7/11/2015 | ||||||||||||||||
| 8,000 | (6) | $ | 74.05 | 7/10/2016 | ||||||||||||||||
| 8,000 | (7) | $ | 46.90 | 6/4/2017 | ||||||||||||||||
| (1) | All options are to purchase shares of BankAtlantic Bancorp’s Class A Common Stock. | |
| (2) | Vested on March 4, 2007. | |
| (3) | Vested on March 31, 2008. | |
| (4) | Vests on July 6, 2009. | |
| (5) | Vests on July 12, 2010. | |
| (6) | Vests on July 11, 2011. | |
| (7) | Vests on June 5, 2012. |
15
The following table sets forth certain information regarding equity-based awards of Woodbridge held by Messrs. Levan and Abdo as of December 31, 2008. Mr. Grelle does not currently hold, and as of December 31, 2008 did not hold, any equity-based awards of Woodbridge.
| Option Awards | ||||||||||||||||||||
| Equity | ||||||||||||||||||||
| Incentive | ||||||||||||||||||||
| Plan Awards: | ||||||||||||||||||||
| Number of | Number of | Number of | ||||||||||||||||||
| Securities | Securities | Securities | ||||||||||||||||||
| Underlying | Underlying | Underlying | ||||||||||||||||||
| Unexercised | Unexercised | Unexercised | Option | Option | ||||||||||||||||
| Options | Options(1) | Unearned | Exercise | Expiration | ||||||||||||||||
Name | Exercisable | Unexercisable | Options | Price | Date | |||||||||||||||
| Alan B. Levan | 12,000 | (2) | N/A | $ | 100.75 | 1/2/2014 | ||||||||||||||
| 8,000 | (3) | 160.65 | 7/22/2015 | |||||||||||||||||
| 12,000 | (4) | 65.30 | 7/24/2016 | |||||||||||||||||
| 12,000 | (5) | 45.80 | 6/18/2017 | |||||||||||||||||
| John E. Abdo | 18,000 | (2) | N/A | 100.75 | 1/2/2014 | |||||||||||||||
| 12,000 | (3) | 160.65 | 7/22/2015 | |||||||||||||||||
| 12,000 | (4) | 65.30 | 7/24/2016 | |||||||||||||||||
| 12,000 | (5) | 45.80 | 6/18/2017 | |||||||||||||||||
| (1) | All options are to purchase shares of Woodbridge’s Class A Common Stock. | |
| (2) | These options vested on January 2, 2009, but they are included as unexercisable options because they were not exercisable as of December 31, 2008. As a result of their vesting on January 2, 2009, these options are currently exercisable. | |
| (3) | Vests on July 22, 2010. | |
| (4) | Vests on July 24, 2011. | |
| (5) | Vests on June 18, 2012. |
PENSION BENEFITS — 2008
The following table sets forth certain information with respect to accumulated benefits as of December 31, 2008 under any BankAtlantic Bancorp plan that provides for payments or other benefits to Messrs. Levan and Abdo at, following, or in connection with, retirement. Mr. Grelle is not entitled to receive any payment or other benefit at, following, or in connection with, retirement under any BankAtlantic Bancorp plan.
| Present Value | ||||||||||||||||
| Number of Years | of Accumulated | Payments During | ||||||||||||||
Name | Plan Name | Credited Service | Benefit(1) | Last Fiscal Year | ||||||||||||
| Alan B. Levan | Retirement Plan for Employees of BankAtlantic | 26 | $ | 988,376 | $ | 0 | ||||||||||
| John E. Abdo | Retirement Plan for Employees of BankAtlantic | 14 | 449,510 | 0 | ||||||||||||
| (1) | Assumptions used in the calculation of these amounts are included in footnote 20 to BankAtlantic Bancorp’s audited financial statements for the fiscal year ended December 31, 2008 included in BankAtlantic Bancorp’s Annual Report onForm 10-K filed with the Securities and Exchange Commission on March 16, 2009, except that retirement age was assumed to be 65, the normal retirement age as defined in the BankAtlantic Retirement Plan. |
BankAtlantic Retirement Plan
Messrs. Levan and Abdo are participants in the BankAtlantic Retirement Plan, which is a defined benefit plan. Effective December 31, 1998, BankAtlantic froze the benefits under the BankAtlantic Retirement Plan. Participants who were employed at December 1, 1998, became fully vested in their benefits under the BankAtlantic Retirement
16
Plan. While the BankAtlantic Retirement Plan is frozen, there will be no future benefit accruals. The BankAtlantic Retirement Plan was designed to provide retirement income based on an employee’s salary and years of active service, determined as of December 31, 1998. The cost of the BankAtlantic Retirement Plan is paid by BankAtlantic and all contributions are actuarially determined.
In general, the BankAtlantic Retirement Plan provides for monthly payments to or on behalf of each covered employee upon such employee’s retirement (with provisions for early or postponed retirement), death or disability. As a result of the freezing of future benefit accruals, the amount of the monthly payments is based generally upon two factors: (1) the employee’s average regular monthly compensation for the five consecutive years out of the last ten years ended December 31, 1998, or prior retirement, death or disability, that produces the highest average monthly rate of regular compensation; and (2) the employee’s years of service with BankAtlantic at December 31, 1998. Benefits are payable for the retiree’s life, with ten years’ worth of payments guaranteed. The benefits are not subject to any reduction for Social Security or any other external benefits.
In 1996, BankAtlantic amended the BankAtlantic Retirement Plan and adopted a supplemental benefit for certain of its executives, as permitted by the Employee Retirement Income Security Act of 1974 and the Code. This was done because of a change in the Code that operated to restrict the amount of the executive’s compensation that may be taken into account for BankAtlantic Retirement Plan purposes, regardless of the executive’s actual compensation. The intent of the supplemental benefit, when added to the regular BankAtlantic Retirement Plan benefit, was to provide to certain executives the same retirement benefits that they would have received had the Code limits not been enacted, subject to other requirements of the Code. The approximate targeted percentage of pre-retirement compensation for which Mr. Levan will be eligible under the BankAtlantic Retirement Plan as a result of the supplemental benefit at age 65 is 33%. Mr. Abdo is not entitled to the supplemental benefit. The supplemental benefit also was frozen as of December 31, 1998. Because the percentage of pre-retirement compensation payable from the BankAtlantic Retirement Plan to Mr. Levan, including the BankAtlantic Retirement Plan’s supplemental benefit, fell short of the benefit that Mr. Levan would have received under the BankAtlantic Retirement Plan absent the Code limits, BankAtlantic adopted the BankAtlantic Split-Dollar Plan described below.
The following table illustrates annual pension benefits at age 65 for various levels of compensation and years of service at December 31, 1998, the date on which the BankAtlantic Retirement Plan benefits were frozen.
| Estimated Annual Benefits | ||||||||||||||||||||
| Average Five Year Compensation | Years of Credited Service at December 31, 1998 | |||||||||||||||||||
at December 31, 1998 | 5 Years | 10 Years | 20 Years | 30 Years | 40 Years | |||||||||||||||
| $120,000 | $ | 10,380 | $ | 20,760 | $ | 41,520 | $ | 62,280 | $ | 83,160 | ||||||||||
| $150,000 | 13,005 | 26,010 | 52,020 | 78,030 | 104,160 | |||||||||||||||
| $160,000 and above | 13,880 | 27,760 | 55,520 | 83,280 | 111,160 | |||||||||||||||
BankAtlantic Split-Dollar Plan
BankAtlantic adopted the BankAtlantic Split-Dollar Plan in 1996 to provide additional retirement benefits to Mr. Levan, whose monthly benefits under the BankAtlantic Retirement Plan were limited by changes to the Code. Under the BankAtlantic Split-Dollar Plan and its accompanying agreement with Mr. Levan, BankAtlantic arranged for the purchase of an insurance policy insuring the life of Mr. Levan. Pursuant to its agreement with Mr. Levan, BankAtlantic has made and will continue to make premium payments for the policy. The policy is anticipated to accumulate significant cash value over time, which cash value is expected to supplement Mr. Levan’s retirement benefit payable from the BankAtlantic Retirement Plan. Mr. Levan owns the policy but BankAtlantic will be reimbursed for the amount of premiums that BankAtlantic pays for the policy upon the earlier of his retirement or death. The portion of the amount paid in prior years attributable to the 2008 premium for the policy that is considered compensation to Mr. Levan is included under “All Other Compensation” in the row entitled “BBX” in the “Summary Compensation Table” above. The BankAtlantic Split-Dollar Plan was not included in the Company's Annual Report on Form 10-K.
The above report was submitted by Earl Pertnoy.
Audit Fees
The aggregate fees for professional services rendered by KPMG in connection with
their auditfreezing of the Company's consolidated financial statementsBankAtlantic Retirement Plan, and reviews of
the consolidated financial statements included in our Quarterly Reports on Form
10-QBankAtlantic has continued to make premium payments for the 2001 fiscal year were approximately $57,000. This amount does not
include amounts paid for professional services renderedpolicy since 1998.
17
Compensation of Directors
The Compensation Committee recommends director compensation to BankAtlantic Bancorp,
Inc., although such amounts are included in our consolidated financial
statements.
Certain Relationships And Related Transactions
Certain Business Relationships
Alan B. Levan, the PresidentBoard based on factors it considers appropriate and abased on the recommendations of management. In 2008, each non-employee director of the Company is also President
and a director of I.R.E. Properties, Inc., I.R.E. Realty Advisory Group, Inc.,
I.R.E. Realty Advisors, Inc. and Florida Partners Corporation. Mr. Levan is also
Chairman of the Board and Chief Executive Officer of BankAtlantic Bancorp, Inc.
and BankAtlantic. As indicated under "Security Ownership of Certain Beneficial
Owners and Management", Mr. Levan may be deemed to be a controlling shareholder
of the Company. Messrs. Levan and Pertnoy servereceived $100,000 for service on the Board of Directors, payable in cash, restricted stock or non-qualified stock options, in such combinations as the director elected, provided that no more than $50,000 was payable in cash. The restricted stock and stock options are granted in Class A Stock under the Company’s 2005 Stock Incentive Plan. Restricted stock vests monthly over a12-month service period and stock options are fully vested on the date of grant, have a ten-year term and have an exercise price equal to the managing general partnerclosing market price of a public limited partnership that is affiliated with
the Company. John E. Abdo, a director of the Company, is Vice Chairman of the
Board of BankAtlantic Bancorp, Inc. and BankAtlantic and is President and a
director of Levitt. Glen R. Gilbert, Executive Vice President of the Company, is
a vice president of Levitt.
In 1994, the Company agreed to participate in certain real estate opportunities
with John E. Abdo, Vice Chairman of the Board, and certain of his affiliates
(the "Abdo Group"). Under the arrangement, the Company and the Abdo Group will
share equally in profits after any profit participation due to any other
partners in the ventures and after interest earned on advances made by the
Company. The Company bears the risk of loss, if any, under the arrangement.
Pursuant to this arrangement with the Abdo Group, in December 1994, an entity
controlled by the Company acquired from an unaffiliated seller approximately 70
acres of unimproved land known as the "Center Port" property in Pompano Beach,
Florida. Through December 31, 2001, all of the project except for land under two
pylon signs, a cell tower site and the lake had been sold to unaffiliated third
parties for approximately $21.4 million and the Company recognized net gains
from the sales of real estate of approximately $4.8 million. The Abdo Group
received
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approximately $2.6 million in 2001 and $114,000 in 2002 from the Company for
their real estate sales profit participation.
Alan B. Levan and John E. Abdo have investments or are partners in real estate
joint ventures with developers, that in connection with other ventures, have
loans from BankAtlantic or are partners with Levitt. Additionally, Levitt pays
the Abdo Companies, Inc., which is controlled by Mr. Abdo, $29,000 per month for
services and management, including activities relating to BankAtlantic,
BankAtlantic Bancorp, Inc., Core Communities, LLC, Levitt and Sons, LLC and the
Levitt joint ventures. Levitt pays to the Company $20,000 per quarter for
management and accounting services provided to Levitt.
The Company paid BankAtlantic approximately $67,000 during 2001 for office space
used by the Company in BankAtlantic's headquarters and for miscellaneous
administrative and other related expenses.
During 1999 and 2000, the Company acquired interests in unaffiliated technology
entities. During 2000, the Company's interests in the technology entities were
transferred at the Company's cost to specified asset limited partnerships.
Subsidiaries of the Company are the controlling general partners of these
partnerships. Interests in such partnerships were sold in 2000 and 2001 to
accredited investors in private offerings. During 2001, approximately $895,000
of capital was raised from unaffiliated third parties by these partnerships and
officers, directors and affiliates of the Company invested approximately $1.3
million in the partnerships. The Company and the general partners retained
ownership interests of approximately $3.8 million. Of the $1.3 million, Alan
Levan and Jack Abdo each borrowed $500,000 from the Company on a recourse basis
to make their investments. Such amounts were still outstanding at the end of the
year, bear interest at the prime rate plus 1% and are payable interest only
annually with the entire balance due in February 2006. After the limited
partners receive a specified return from the partnerships, the general partners
are entitled to receive 20% of all cash distributions from the partnerships. The
general partners are limited liability companies of which the members are: John
E. Abdo - 13.75%; Alan B. Levan - 9.25%; Glen R. Gilbert - 2.0%; John E. Abdo,
Jr. - 17.5% and BFC Financial Corporation - 57.5%.
During 1999, BFC Financial Corporation entered into an agreement with John E.
Abdo, Jr., son of John E. Abdo, a Director and Vice Chairman of the Board.
Pursuant to the agreement, the Company will pay to John E. Abdo, Jr. an amount
equal to 1% of the amount of the Company's investment in identifies venture
capital investments identified for the Company and will grant him a profit
participation of 3 1/2% of the net profit realized by the Company through his
interest in the general partner. Additionally, the Company pays him an expense
allowance of $300 per month. During 2001, the Company paid John E. Abdo, Jr.
expense allowances of $3,600 pursuant to the agreement.
One of the technology limited partnerships is an investor in Seisint, Inc.
("Seisint"). Seisint owns 748,000 shares of BankAtlantic Bancorp, Inc. Class A
stock. BankAtlantic Bancorp, Inc., Alan B. Levan and John E. Abdo own 3,033,386,
67,409 and 149,108 shares, respectively, or collectively approximately 7% of
Seisint's outstanding Common Stock. Seisint also serves as an Application
Service Provider ("ASP") for BankAtlantic Bancorp, Inc. for one customer service
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information technology application. This ASP relationship is believed to be on
terms no less favorable to BankAtlantic Bancorp, Inc. than available in an arm's
length transaction and fees aggregating $169,337 and $368,000 were paid to
Seisint for its services during 2001 and 2000, respectively.
Management believes that all transactions between the Company and its affiliates
were on terms at least as favorable as could have been obtained from
unaffiliated third parties.
AMENDMENT TO THE COMPANY'S ARTICLES OF INCORPORATION
General Description of the Amendment
The Board of Directors is proposing to amend Article V of the Company's Articles
of Incorporation. Currently the Class A Common Stock has no voting rights. The
proposed Amendment would provide voting rights to holders of Class A Common
Stock entitling each holder to one vote per share and would adjust the number of
votes per share of Class B Common Stock so as to fix the relative aggregate
voting power of the Class A CommonStock on the date of grant. The number of stock options and restricted stock granted is determined by the Company based on assumptions and formulas typically used to value these types of securities. In addition to compensation for their service on the Board of Directors, the Company pays compensation to directors for their service on the Board’s committees. During 2008, this compensation was comprised of the following. The Chairman of the Audit Committee received an annual cash retainer of $15,000. All other members of the Audit Committee received annual cash retainers of $10,000. The Chairman of the Compensation Committee and the Chairman of the Nominating/Corporate Governance Committee each received an annual cash retainer of $3,500. Other than the Chairmen, members of the Compensation Committee and the Nominating/Corporate Governance Committee were not separately compensated for their service on such committees. For 2008, in the aggregate, the Company paid $200,000 in cash, granted 120,480 shares of restricted Class A Stock and granted non-qualified stock options to purchase 252,150 shares of Class B CommonA Stock initially at
22.0% and 78.0%, respectively. Thereafter, the proportionate voting powerto its non-employee directors. Directors who are also officers of the Class B Common Stock would be decreased, andCompany or its subsidiaries do not receive additional compensation for their service as directors.
DIRECTOR COMPENSATION TABLE — 2008
The following table sets forth certain information regarding the proportionate voting powercompensation paid to the Company’s non-employee directors for their service during the fiscal year ended December 31, 2008.
| Change in | ||||||||||||||||||||||||||||
| Pension Value | ||||||||||||||||||||||||||||
| Fees | and Nonqualified | |||||||||||||||||||||||||||
| Earned | Stock | Non-Equity | Deferred | |||||||||||||||||||||||||
| or Paid | Awards | Option | Incentive Plan | Compensation | All Other | |||||||||||||||||||||||
Name | in Cash($) | (1)(3)($) | Awards (2)(3)($) | Compensation($) | Earnings($) | Compensation($) | Total($) | |||||||||||||||||||||
| D. Keith Cobb | 60,000 | 50,000 | — | — | — | — | 110,000 | |||||||||||||||||||||
| Oscar Holzmann | 65,000 | — | 50,000 | — | — | — | 115,000 | |||||||||||||||||||||
| Neil Sterling | 63,500 | — | 50,000 | — | — | — | 113,500 | |||||||||||||||||||||
| Earl Pertnoy | 63,500 | 50,000 | — | — | — | — | 113,500 | |||||||||||||||||||||
| (1) | All restricted stock awards are in shares of Class A Stock. The dollar amount represents the compensation recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 23 to the Company’s audited financial statements for the fiscal year ended December 31, 2008 included in the Company’s Annual Report onForm 10-K filed with the Securities and Exchange Commission on March 31, 2009. There were no forfeitures during 2008. The grant date fair value computed in accordance with FAS 123(R) of the restricted stock awards granted to each of Messrs. Cobb and Pertnoy during 2008 was $50,000. | |
| (2) | All options are to purchase shares of Class A Stock and vested fully as of the date of grant. The dollar amount represents the compensation recognized for financial statement reporting purposes for the fiscal year ended December 31, 2008, in accordance with FAS 123(R), without taking into account an estimate of forfeitures related to service-based vesting of stock option grants, including amounts from awards granted prior to 2008. Assumptions used in the calculation of these amounts are included in footnote 23 to the Company’s audited financial statements for the fiscal year ended December 31, 2008 included in the Company’s Annual Report onForm 10-K filed with the Securities and Exchange Commission on March 31, 2009. There were no forfeitures during 2008. The grant date fair value computed in accordance with FAS 123 (R) of the stock option awards granted to each of Messrs. Holzmann and Sterling during 2008 was $50,000. |
18
| (3) | The table below sets forth the aggregate number of stock options and the aggregate number of shares of restricted stock held as of December 31, 2008 by each non-employee director of the Company during the year ended December 31, 2008: |
Name | Restricted Stock(a) | Stock Options(b) | ||||||
| D. Keith Cobb | 25,100 | 6,250 | ||||||
| Oscar Holzmann | — | 171,513 | ||||||
| Neil Sterling | — | 171,513 | ||||||
| Earl Pertnoy | 25,100 | 34,330 | (c) | |||||
| (a) | All restricted stock awards are in shares of Class A Stock. | |
| (b) | Represents options to purchase shares of Class A Stock or Class B Stock as follows: D. Keith Cobb — 6,250 shares of Class B Stock; Oscar Holzmann — 151,223 shares of Class A Stock and 20,290 shares of Class B Stock; Neil Sterling — 151,223 shares of Class A Stock and 20,290 shares of Class B Stock; and Earl Pertnoy — 34,330 shares of Class B Stock. | |
| (c) | Represents options held by Pertnoy Parent Limited Partnership. Mr. Pertnoy was the President of Pertnoy Parent, Inc., the General Partner of Pertnoy Parent Limited Partnership. |
2) PROPOSAL TO AMEND THE COMPANY’S AMENDED AND RESTATED ARTICLES OF INCORPORATION
Description of the Class A Common StockAmendment
The proposed amendment (referred to within this section as the “Amendment”), if approved, would be increased, asamend Articles IV and V of the Company’s Amended and Restated Articles of Incorporation to increase the number of authorized shares of outstanding Class B Common Stock decreases as follows:
Class B Shares Class B Voting Class A Voting
issued and outstanding Percentage Percentage
---------------------- ---------- ----------
Current 100.0% 0.0%
2,382,157 78.0% 22.0%
1,800,000 60.0% 40.0%
1,400,000 and fewer 47.0% 53.0%Stock from 70,000,000 shares to 100,000,000 shares. The Amendment also provides that, in addition tohas no impact on the rights afforded to
shareholders of the Company under Florida law, the holders of Class B Common
Stock will be entitled to vote as a separate voting group on certain matters as
described below. The other terms of our Class A Common Stock and our Class B
Common Stock will not be affected by the Amendment.
Upon receipt of the approval of the Amendment by the Company's shareholders, the
Company will cause Articles of Amendment to be filed with the Secretary of State
of the State of Florida that will effectuate the changes contained in the
Amendment.
The complete text of the proposed Amendment is set forth in full in the Articles
of Amendment attached as Appendix A to this Proxy Statement. This summary of therelative rights, powers and limitations of the Class A Common Stock and the Class B Common Stock should be read in conjunction with, and is qualified in its
entirety by reference to,or on the Amendment.
The Boardnumber of Directors recommends thatauthorized shares of Class B Stock. Neither holders of Class A Common Stock andor Class B Common Stock vote FOR the approvalhave preemptive rights to acquire or subscribe for any of the adoptionadditional shares of Class A Stock authorized by the Amendment. The form of the Amendment.
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Description ofAmendment is attached to this Proxy Statement as Appendix A.
Reasons for the Class A Common StockAmendment
The Company’s Amended and Class B Common Stock
Voting Rights
Currently, the Class A Common Stock has no voting rights except in limited
circumstances provided by law. Following the Amendment, except as provided by
law or as specifically provided in ourRestated Articles of Incorporation presently authorize the holdersissuance of a total of 70,000,000 shares of Class A Common Stock and Class B Common Stock will vote as a single group. Each
holder of Class A Common Stock will, as of the date on which the Amendment is
adopted, be entitled to one vote for each share held, and the Class A Common
Stock will initially possess in the aggregate 22.0% of the total voting power of
the Class A Common Stock and Class B Common Stock. The holders of the Class B
Common Stock, which currently represents 100% of the voting power of the
Company, will relinquish their exclusive voting rights and, following the
Amendment, the holder of each share of Class B Common Stock will be entitled to
the number of votes per share such that the aggregate number of votes for all of
the Class B Common Stock will initially represent 78.0% of the total voting
power of the Class A Common Stock and Class B Common Stock. Thereafter, the
proportionate voting power of the Class B Common Stock will decrease and the
proportionate voting power of the Class A Common Stock will increase as the
number of outstanding20,000,000 shares of Class B Common Stock decreases, as set forth
above.
Under Florida law, holdersStock. As of Class A Common StockApril 2, 2009, the Company had issued and Class B Common Stock vote
as separate voting groups on certain amendments to the Company's Articles of
Incorporation, including amendments which would:
o increase or decrease the authorized number ofoutstanding 38,254,389 shares of Class A Common
Stock or Class B Common Stock;
o change the designation, rights, preferences or limitations of the
Class A Common Stock or Class B Common Stock;
o create a new class of shares, or increase the rights, preferences or
number of any authorized shares, which would have rights or
preferences with respect to distributions or dissolution that are
prior, superior or substantially equal to the Class A Common Stock or
Class B Common Stock, other than the establishment of a class or
series of preferred stock pursuant to our existing "blank check"
preferred stock; or
o effect an exchange or reclassification, or create a right of exchange,
of shares of another class of stock into shares of Class A Common
Stock or Class B Common Stock or an exchange or reclassification of
shares of Class A Common Stock or Class B Common Stock into shares of
another class.
Further, under Florida law holders of Class A Common Stock and Class B Common
Stock are entitled to vote as a separate voting group on any plan of merger or
plan of share exchange which
-17-
contains a provision which, if included in a proposed amendment to the Articles
of Incorporation, would require their vote as a separate voting group.Stock. In addition, to their rights under Florida law,as of April 2, 2009, the Amendment provides that the
approval of the holders of Class B Common Stock voting as a separate voting
group will be required before any of the following actions may be taken:
o the issuance of any additionalCompany had issued and outstanding 6,875,104 shares of Class B Common Stock, other
than (1)each of which is convertible at any time on a stock dividend issued to holders of Class B Common Stock,
(2) pursuant to the terms of any securities outstanding on the date
the Amendment is effected that are by their terms convertible into or
exchangeable for shares of Class B Common Stock, (3) pursuant to the
terms of any class or series of preferred stock established after the
date hereof under our existing "blank check" preferred stock and (4)
pursuant to the terms of options exercisable for shares of Class B
Common Stock issued under the terms of any stock option plan of the
Company existing on the date the Amendment is effected or established
after such date and approved by the holders of a majority of the then
issued and outstanding Class B Common Stock;
o the reduction of the number of outstanding shares of Class B Common
Stock (other than upon conversion of the Class B Common Stockshare-for-share basis into Class A Common Stock, or upon a voluntary disposition to the Company);
or
o any amendments of the capital stock provisions of the Company's
Articles of Incorporation.
No Effect on Convertibility of Class B Common Stock into Class A Common
Stock
The Amendment will not change the present right of holders of Class B Common
Stock to convert at any time any or all of their shares into shares of Class A
Common Stock on a share-for-share basis.
No Effect on Dividends and other Distributions; Liquidation Rights
Holders of Class A Common Stock and Class B Common Stock will continue to be
entitled to receive cash dividends, when and as declared by the Board of
Directors out of legally available assets. With respect to dividends other than
cash (including stock splits and stock dividends), the distribution per share
with respect to Class A Common Stock will continue to be identical to the
distribution per share with respect to Class B Common Stock, except that a stock
dividend or other distribution to holders of Class A Common Stock may be
declared and issued in Class A Common Stock while a dividend or other
distribution to holders of Class B Common Stock may be declared and issued in
either Class A Common Stock or Class B Common Stock (at the discretion of the
Board of Directors), provided that the number of any shares so issued is the
same on a per share basis.
-18-
Upon any liquidation of the Company, the assets legally available for
distribution to shareholders will continue to be distributed ratably among the
holders of Class A Common Stock and Class B Common Stock.
Reasons for the Amendment
Currently the Class A Common Stock has no voting rights. The Board of Directors
believes that providing voting rights to the Class A Common Stock may make the
Class A Common Stock more attractivesubject to certain classes of investors, including
institutional investors who may choose not to invest, or may be prohibited from
or subject to restrictions on investing, in non-voting securities. The Board of
Directors believes that greater interest in the Class A Common Stock may lead to
increased trading volume and liquidity, although there can be no assurance that
an active or liquid trading market for the Class A Common Stock will be created
or, if it is created, that it will be sustained. In addition, the Board of
Directors believes that approval of the Amendment may enhance the Company's
flexibility to issue shares of Class A Common Stock for financing, acquisition
and compensation purposes while maintaining current stability and continuity of
control.
Possible Negative Effects of the Amendment
As a result of the Amendment, the Class B Common Stock will initially represent
78.0% of the combined voting power of our common stock even though it currently
represents approximately 27% of the common equity of the Company. This
proportionate voting power will decrease as the number of outstanding shares of
Class B Common Stock decreases, but will never be less than 47.0% of the
combined voting power of the common stock. Accordingly, the relative voting
power of the Class B Common Stock may not bear any relationship to the relative
economic interest represented by those shares. The market may not react
favorably to the structure until it becomes familiar with the structure, or it
may not accept this structure at all.
Additionally, while the Company's common stock is not currently listed on the
Nasdaq Stock Market or a national securities exchange, it is possible that the
voting structure contemplated by the Amendment will not comply with the
applicable listing standards for Nasdaq Stock Market or a national securities
exchange if the Company were to apply to have either class of Common Stock so
listed. Accordingly, adoption of the Amendment could adversely effect the
ability of the Company to list its common stock in the future.
The Amendment is not intended to have any additional anti-takeover effect.
However, the voting power of the Class B Common Stock will initially be fixed at
78.0% and holders of the Class B Common Stock will never possess less than 47.0%
of the Company's aggregate voting power. As a result, the Amendment will
continue the current situation where a sale or transfer of control or removal of
incumbent directors would be unlikely without the concurrence of the holders of
the Class B Common Stock.
Messrs. Levan and Abdo currently control approximately 60.5% of the Company's
Class B Common Stock and if the Amendment is approved will hold shares
immediately following the adoption of the Amendment which will represent
approximately 60.6% of the aggregate voting
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power of the Company. Assuming that Messrs. Levan and Abdo do not dispose of or
convert any of their shares of Class B Common Stock or dispose of their shares
of Class A Common Stock or Class B Common Stock they will not at any time hold
shares representing less than 60.6% of the aggregate voting power of the
Company.
Messrs. Levan and Abdo have indicated that they intend to enter into a
Shareholders Agreement and Irrevocable Proxylimited exceptions with respect to the shares of Class B Common Stock held by Mr. Abdo, and an aggregate of 1,797,960 shares of Class A Stock were reserved for issuance upon the exercise of outstanding stock options.
The Board of Directors approved the Amendment in order to give the Company the flexibility to consider potential future actions which involve the issuance of shares of Class A Stock, including public or private stock offerings, acquisitions, stock-based compensation, stock dividends or distributions or other corporate purposes which may be identified in the future by the Board of Directors.
Although the Company has and will continue to evaluate the advisability of stock offerings and other future actions involving the issuance of the Company’s securities in the future, the Company currently has no agreements with respect to the issuance of any shares of Class A Stock or Class B Stock. Subject to certain limited exceptions, shareholder approval will not be required prior to the issuance of shares of Class A Stock and, unless shareholder approval is required by applicable law, rule or regulation, the Company does not anticipate seeking the approval of its shareholders in connection with any such future issuances.
19
Possible Anti-Takeover Effects of the Amendment
The increase in the number of authorized shares of Class A Stock contemplated by the Amendment is not intended to have an anti-takeover effect. However, the issuance of shares of Class A Stock, which, as described above, has relatively less voting power than the Company’s Class B Stock, whether in connection with a public offering, an acquisition or a stock dividend, could have the effect of enabling existing management and shareholders, including Messrs. Levan and Abdo and entities controlled by them. Underthem, to retain substantially their current relative voting power without the agreement, they will agree to vote
theirdilution which would be experienced if additional shares of Class B Common Stock were issued. Future issuances of Class A Stock would have the effect of diluting the voting rights of existing holders of such stock and could have the effect of diluting earnings per share and book value per share of all existing shareholders. Further, in favor of the election of each other to
the Company's Board of Directors for so long as both are willing and able to
serve as directors of the Company. Additionally, Mr. Abdo will grant an
irrevocable proxy to an entity controlled by Mr. Levan and obtain the consent of
Mr. Levan prior to the sale or conversion of certain of hisevent that a stock dividend payable in shares of Class A Stock was declared on the Company’s Class B Common Stock.Stock, the recipient could dispose of shares of Class A Stock without significantly affecting its voting power. The Company'sAmendment will allow the existing holders of Class B Stock, including Messrs. Levan and Abdo and entities controlled by them, to continue to exercise voting control over the Company even if the Company were to raise additional capital through the issuance of shares of Class A Stock and, as described above, the Amendment will result in the authorization of additional shares of Class A Stock which may be issued without shareholder approval. As a consequence, the Amendment may further limit the circumstances in which a sale or transfer of control of the Company could be consummated which was not acceptable to management, including Messrs. Levan or Abdo. However, it should be noted that a sale, contested merger, assumption of control by an outside principal shareholder or the removal of incumbent directors would at the present time be impossible without the concurrence of Messrs. Levan and Abdo, given their collective ownership position in the Company.
The Company’s Amended and Restated Articles of Incorporation and By-LawsAmended and Restated Bylaws also presently contain other provisions which could have anti-takeover effects. These provisions include, without limitation: (i) the higher relative voting power of the Class B Stock as compared to the Class A Stock; (ii) the division of the Board of Directors into three classes of directors with three-year staggered terms; (iii) the authority of the Board of Directors to issue additional shares of preferred stock, and to fix the relative rights and preferences of the preferred stock, without additional shareholder approval, (ii)
the division of the Company's Board of Directors into three classes of directors
with three-year staggered terms, (iii)approval; and (iv) certain notice procedures to be complied with by shareholders in order to make shareholder proposals or nominate directorsdirectors.
The Company is also subject to the Florida Business Corporation Act, including provisions related to “control share acquisitions” and (iv) super majority vote requirements for certain matters“affiliated transactions.” The control share acquisition statute generally provides that shares acquired within specified voting ranges (shares representing in excess of 20%, 33% and 50% of the Company’s outstanding voting power) will not recommended orpossess voting rights unless the acquisition of the shares is approved by the Board of Directors.
The Company also has a shareholders' rights plan, commonly referred to as a
"poison pill," which is intended to cause substantial dilution to a person or
group who attempts to acquire the Company on terms that the Company'sCompany’s Board of Directors has not approved. The existencebefore acquisition of the shareholders'shares or the voting rights plan could
make it more difficultassociated with the shares are approved by a majority vote of the Company’s disinterested shareholders following the acquisition of the shares. Subject to exceptions for a third party to acquirecertain transactions based on pricing or approval by a majority of disinterested directors, the Class B
Common Stock withoutaffiliated transaction statute generally requires the consentapproval of the Company's Boardholders of Directors.
Effect on Market Price
The market priceshares representing 662/3% of the Company's Class A Common StockCompany’s outstanding voting power, other than the shares owned by an interested shareholder, to effectuate certain transactions involving the Company and its Class B Common
Stock depends on many factorsan interested shareholder or an affiliate of an interested shareholder, including, among others, a merger, sale of assets or issuance of shares.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE AMENDMENT TO THE COMPANY’S AMENDED AND RESTATED ARTICLES OF INCORPORATION.
3) PROPOSAL TO AMEND THE COMPANY’S 2005 STOCK INCENTIVE PLAN
Background
In 2005, the future performanceCompany’s Board of Directors and the Company’s shareholders approved the Company’s 2005 Stock Incentive Plan (referred to within this section as the “Plan”), which provides for the issuance of awards of restricted Class A Stock and for the grant of options to purchase shares of Class A Stock. The purpose of the Plan is to attract and retain the best available personnel for positions of substantial responsibility at the Company, to provide additional long term incentives to employees of the Company and its subsidiaries (including BankAtlantic Bancorp, Inc.), general
economicas well as to other individuals who perform services for the Company and market conditionsits subsidiaries, and conditions relating to financial institutions
generally. Many promote the success and profitability
20
of these factors are beyond the Company's control,Company’s business. The Plan currently limits the total number of shares of Class A Stock available for grant under the Plan to 3,000,000 shares. The Plan also currently limits the number of shares of restricted stock and the Company cannot predict the prices atnumber of shares underlying stock options which the Class A Common Stock or the Class
B Common Stock will trade. There is no assurance that granting voting rightsmay be granted during any calendar year to the Class A Common Stock pursuant to the proposed capital structure will have a
positive effect on its marketability or market value or that it will not have an
adverse effect on the marketability or market value“covered employees” (as defined in Section 162(m) of the Company's Class B
Common Stock. As discussed above, adoption of the Amendment may also limit or
impair the abilityCode) of the Company to list its300,000 shares and 1,500,000 shares, respectively, and provides that no person shall be granted options under the Plan in any calendar year covering, in the aggregate, more than 100,000 shares. As of April 2, 2009, 2,015,804 shares of Class A Common Stock orremained available for grant under the Plan.
Description of Proposed Amendment
In light of, among other factors, the current economic environment and the trading price of the Company’s Class B
CommonA Stock, on Nasdaq or a national securities exchange should itthe Board of Directors has determined that the current number of shares available for grant under the Plan, both in the future
electaggregate and to attempteligible individuals during any calendar year, does not afford the flexibility needed to do so.
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Effectivenessprovide competitive equity-based incentive compensation opportunities to employees of the Amendment; Certificates
IfCompany. The Board of Directors believes that the ability to grant equity-based incentive compensation awards promotes the retention and recruiting of key employees and enhances the relationship between employee performance and the creation of shareholder value. Therefore, and based upon the recommendation of the Compensation Committee, the Board of Directors has approved an amendment to the Plan (referred to within this section as the “Plan Amendment”) which would increase the aggregate number of shares available for grant under the Plan to 6,000,000 shares as well as increase the number of shares of restricted stock and the number of shares underlying stock options which may be granted during any calendar year to covered employees of the Company and the number of shares underlying options which may be granted to any person under the Plan during any calendar year to the full amount of shares available for grant under the Plan. As a result of the Plan Amendment, is approved, it is expectedthe committee responsible for administering the Plan will also have the discretion to substitute new awards for previously granted awards which have less favorable terms, including the discretion to re-price stock options, or substitute new stock options for previously granted stock options which have higher exercise prices.
The Plan also sets forth a list of performance goals which must be attained as a condition of an award recipient’s retention of shares underlying performance-based restricted stock awards and provides that Articlesno performance-based restricted stock awards may be granted after March 7, 2010 unless such performance goals are re-approved by the Company’s shareholders. Shareholder approval of the Plan Amendment substantially inwill constitute shareholder re-approval of the formperformance goals under the Plan such that, for the remaining term of Appendix Athe Plan, performance-based restricted stock awards may be granted without any further shareholder approval. See “Performance-Based Restricted Stock Awards” below as well as Section 8.3 of the Plan attached to this Proxy Statement will
be filed with the Secretary of Stateas Appendix B for a discussion of the State of Florida promptly afterperformance goals under the Annual Meeting. The Amendment will become effective immediately upon filingPlan.
Description of the ArticlesPlan
Other than as described above, the terms and conditions of Amendment with the SecretaryPlan, which were approved by the Company’s shareholders at the Company’s 2005 annual meeting of State.
Shareholders should retainshareholders, will remain unchanged and are summarized below.
Types of Awards. The Plan allows the Company to grant stock options (both incentive stock options and non-qualified stock options) and restricted stock.
Administration. The Plan is administered by an administrative committee which may consist of not less than two members of the Board of Directors. The administrative committee has broad discretionary powers. The Board of Directors may exercise any power or discretion conferred on the administrative committee. The Compensation Committee currently serves as the administrative committee for the Plan.
Stock Subject to the Stock Incentive Plan. The Company will at all certificates representing theirtimes reserve and keep available such number of shares as may be required to meet the needs of the Plan. Any shares subject to stock awards or option grants under the Plan which expire or are terminated, forfeited or canceled without having been exercised or vested in full are available for further grant under the Plan.
21
Eligibility. The administrative committee selects the people who will receive stock option grants and restricted stock awards under the Plan. Any employee or director of the Company or of any of the Company’s subsidiaries, and any independent contractor or agent of the Company, may be selected to receive restricted stock awards and stock option grants. As of April 2, 2009, five directors and approximately 36 employees of the Company were eligible to be selected to receive stock options and restricted stock awards under the Plan.
Restricted Stock Awards. The administrative committee may, in its discretion, grant awards of restricted stock to eligible individuals under the Plan. The administrative committee determines at the time of the grant whether the award is a performance-based restricted stock award, the number of shares of Class A Common Stock or Class B Common Stock (and should not send such certificatessubject to the Companyaward, the vesting schedule applicable to the award and may, in its discretion, establish other terms and conditions applicable to the award.
Unless the administrative committee determines otherwise with respect to any restricted stock award, before the shares subject to a restricted stock award are vested and transferred to the award recipient, the administrative committee exercises all voting and tender rights relating to such shares in its discretion and holds and accumulates any dividends or distributions on such shares for distribution at the same time and terms as the shares. However, the administrative committee may authorize the immediate distribution of the restricted shares to the award recipient in the form of a stock certificate bearing a legend containing the applicable vesting restrictions or the Company's transfer agent) because it willimmediate distribution of dividends paid on the underlying shares.
Vesting. All restricted stock awards are subject to a vesting schedule specified by the administrative committee at the time the award is made. If the administrative committee does not be necessaryspecify a vesting schedule, the award vests on the first anniversary of the grant date. In the event of death or termination due to issue new certificates in connectiondisability before the vesting date, unvested awards that would have vested within six months after death or termination for disability are deemed vested. All other awards that are unvested at termination of employment are forfeited, with the Amendment andaward recipient receiving a refund equal to the currently
outstanding certificates will continue to represent shareslesser of the Company's
Class A Common Stock or Class B Common Stock, as applicable, following the
Amendment.
Dissenter's Appraisal Rights
Pursuant to Section 607.1320fair market value of the Florida Business Corporation Act,unvested shares at termination of employment or the amount (if any) paid when the award was made.
Performance-Based Restricted Stock Awards. At the time of grant, the administrative committee may designate a holderrestricted stock award as a performance-based restricted stock award. If it does so, the administrative committee establishes, in addition to or in lieu of Class B Commonservice-based vesting requirements, one or more performance goals, which must be attained as a condition of retention of the shares. The performance goal(s) are based on one or more of the following:
| • | earnings per share; | |
| • | net income; | |
| • | EBITDA; | |
| • | return on equity; | |
| • | return on assets; | |
| • | core earnings; | |
| • | stock price; | |
| • | strategic business objectives, consisting of one or more objectives based on meeting specified cost targets, business expansion goals, goals relating to acquisitions or divestitures, revenue targets or business development goals; and | |
| • | except in the case of a “covered employee” under Section 162(m) of the Code, any other performance criteria established by the administrative committee. |
Performance goals may be established on the basis of reported earnings or cash earnings, and consolidated results or results of individual business units and may, in the discretion of the administrative committee, include or exclude extraordinary itemsand/or the results of discontinued operations. Each performance goal may be expressed on an absoluteand/or relative basis, may be based on or otherwise employ comparisons based on internal targets, the past performance of the Company (or individual business units)and/or the past or current performance of other
22
companies. Attainment of the performance goals will be measured over a performance measurement period specified by the administrative committee when the award is made.
The administrative committee determines in its discretion whether the award recipient has attained the performance goals. If the administrative committee determines that the award recipient attained the performance goals, the administrative committee certifies that fact in writing. If the performance goals are not satisfied during the performance measurement period, the relevant awards are forfeited. If the performance goals and any service-based vesting schedule are satisfied, the award is distributed (or any vesting-related legend removed from any stock certificates previously delivered to the award recipient).
Terms and Conditions of Stock (a "Class B Common Shareholder")Option Grants. The administrative committee sets the terms and conditions of the stock options that it grants. The administrative committee may dissent and elect
to receivenot grant a stock option with a term of greater than 10 years or with a purchase price that is less than the fair market value of such shareholder's shares as of the day prior to
the date the Amendment was approved, without including the incremental value or
the diminution in value, if any, arising from the Amendment, judicially
determined and paid. Holdersa share of Class A Common Stock do not have the right to
dissent from the Amendment. In order to perfect such shareholder's appraisal
rights, a dissenting shareholder (a "Dissenting Shareholder") must fully comply
with the statutory procedures of Sections 607.1320, 607.1301, 607.1302 and
607.1320 of the Florida Business Corporation Act summarized below. Such Sections
are attached hereto as Appendix B. Class B Common Shareholders are urged to read
such Sections in their entirety and to consult with their legal advisors. Each
Class B Common Shareholder who may desire to assert appraisal rights is
cautioned that failure on his or her part to adhere strictly to the requirements
of Florida law in any regard may cause a forfeiture of any appraisal rights.
To exercise appraisal rights, a Dissenting Shareholder must satisfy the
following conditions:
1. Each Class B Common Shareholder who desires to receive an appraisal
value for his or her shares must file with the Company, prior to the taking of
the vote on the Amendment, a written notice of such shareholder's intent to
demand payment if the Amendment is effectuated. A proxy or vote against the
Amendment will not alone be deemed to be the written notice of intent to demand
payment. In order to dissent, the shareholder need not vote against the
Amendment, but cannot vote for the Amendment.
2. Within ten days after the vote is taken, the Company shall give written
notice of the authorization of the Amendment, if obtained, to each Class B
Common Shareholder who filed notice of intent to demand payment for such
shareholder's shares. The shareholder must make written demand on the Company
for the payment of the fair value of the shares.
3. Within twenty days after the giving of the foregoing notice by the
Company, each Dissenting Shareholder who elects to dissent shall file with the
Company a notice of such
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election, stating such shareholder's name and address, the number of classes and
series of shares as to which he dissents and a demand for payment of the fair
value of such shareholder's shares. Any Dissenting Shareholder failing to file
such election to dissent within the period set forth shall lose the right to
dissent from the Amendment. Any Class B Common Shareholder filing an election to
dissent shall deposit the certificate(s) representing such shareholder's shares
with the Company simultaneously with the filing of the election. The Company may
restrict the transfer of such shares from the date the election to dissent is
filed.
4. Upon filing a notice of election to dissent, the Dissenting Shareholder
shall thereafter be entitled only to payment pursuant to the procedure set forth
herein and shall not be entitled to vote or to exercise any other rights of a
shareholder. A notice of election may be withdrawn in writing by the Dissenting
Shareholder at any time before an offer is made by the Company, as provided
below, to pay for such shareholder's shares. However, the right of the
Dissenting Shareholder to be paid the fair value of such shareholder's shares
shall cease, and he shall be reinstated to have all rights as a shareholder as
of the filing of such shareholder's notice of election, including any
intervening preemptive rights and the right to payment of any intervening
dividend or other distribution or, if any such rights have expired or any such
dividend or distribution other than in cash has been completed, in lieu thereof,
at the election of the Company, the fair value thereof in cash as determined by
the Company as of the time of such expiration or completion, but without
prejudice otherwise to any corporate proceedings that may have been taken in the
interim, if:
a. Such demand is withdrawn as provided;
b. The Company abandons the Amendment or the Company's shareholders
revoke their approval of the Amendment;
c. No demand or petition for the determination of fair value by a
court has been made or filed within the required time; or
d. A court of competent jurisdiction determines that such Dissenting
Shareholder is not entitled to the relief provided by this section.
5. Within ten days after the expiration of the period in which Class B
Common Shareholders may file their notices of election to dissent, or within ten
days after the effective date or the date which the Amendment is approved
whichever is later (but in no event later than ninety days after the Amendment
is approved), the Company shall make a written offer to each Dissenting
Shareholder who has made demand as herein provided, and will make a written
offer to each such Class B Common Shareholder to pay for such shares at a
specified price deemed by the Company to be the fair value thereof. If the
Amendment has not been consummated within the ninety days after the approval
thereof, the offer may be conditioned upon such effectuation. Such offer is to
be accompanied by (i) a balance sheet of the Company as of the latest available
date (not more than twelve months prior to the making of an offer), and (ii) a
profit and loss statement of the Company for the twelve-month period ended on the date it grants the stock option.
The administrative committee may grant incentive stock options that qualify for special federal income tax treatment or non-qualified stock options that do not qualify for special federal income tax treatment. Incentive stock options are subject to certain additional restrictions under the Code and the Plan. Unless otherwise designated by the administrative committee, options granted are exercisable for a period of such balance sheet.
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6. If, within thirty days after the making of such offer, the Dissenting
Shareholder accepts the same, payment for the shares of that Dissenting
Shareholder is to be made within ninety days after the making of such offer or
the date of the effectuation of the Amendment, whichever is later. Upon payment
of the agreed value, the Dissenting Shareholder shall cease to have any interest
in such shares.
7. The court shall also determine whether each such Dissenting Shareholder
is entitled to receive payment for such shareholder's shares. If the Company
fails to make such an offer, or if it makes such an offer and any Dissenting
Shareholder fails to accept the offer within the thirty day period thereafter,
then the Company, within thirty days after receipt of written demand from any
Dissenting Shareholder given within sixty daysten years after the date of grant (or for a shorter period ending three months after the effectuationoption holder’s termination of employment due to disability, one year after termination of employment due to death, or immediately upon termination for any other reason). The exercise period may be further extended for limited periods in the administrative committee’s discretion.
Upon the exercise of an option, the exercise price of the Amendment shall,option must be paid in full. Payment may be made in cash, Class A Stock already owned by the option holder, or at its election withinin such sixty day
periodother consideration as the administrative committee authorizes. Options may file an actionbe transferred prior to exercise only to certain family members, trusts or other entities owned by the option holderand/or such family members, to charitable organizations or upon death of the option holder.
Mergers and Reorganizations. The number of shares available under the Plan, the maximum limits on option grants and restricted stock awards to persons or groups of persons individually and in the aggregate, any courtoutstanding awards and the number of competent jurisdictionshares subject to outstanding options may be adjusted to reflect any merger, consolidation or business reorganization in Broward
County, Florida, requesting that the fair value of such shares be found and
determined. The court's jurisdiction shall be plenary and exclusive. Ifwhich the Company failsis the surviving entity, and to institute such proceeding withinreflect any stock split, stock dividend, spin-off or other event where the above-prescribed period,
any Dissenting Shareholder may do soadministrative committee determines an adjustment is appropriate in order to prevent the nameenlargement or dilution of the Company. All Dissenting
Shareholders, wherever residing, will be made parties to the proceedings as an action against their shares. A copy of the initial pleading will be served on
each Dissenting Shareholder. All Dissenting Shareholders who are proper parties
to the proceeding are entitled to judgment againstaward recipient’s rights. If a merger, consolidation or other business reorganization occurs and the Company foris not the amount of
the fair value of their shares, as well assurviving entity, any outstanding options, at the discretion of the court, an
allowance for interest at such rate asadministrative committee or the courtBoard of Directors, may find fairbe canceled and equitable.
The Company shall pay each Dissenting Shareholder the amount found to be due to
him within ten days after final determination of the proceedings.
8. The court may, if it elects, appoint one or more appraisers to receive
evidence and recommend a decision on the question of fair value.
9. The judgment of the court is payable only upon and concurrently with the
surrenderpayment made to the Company of the certificate(s) representing the shares. Upon
payment of the judgment, the Dissenting Shareholder ceasesoption holder in an amount equal to have any interest
in such shares.
10. The costs and expenses of the proceeding are determined by the court
and assessed against the Company, except that all or any part of such costs and
expenses may be apportioned and assessed against any or all of the Dissenting
Shareholders who are parties to the proceeding and to whom the Company has made
an offer to pay for their shares, if the court finds their refusal to accept
such offer to have been arbitrary, vexatious or not in good faith. Expenses
include reasonable compensation for, and expenses of, appraisers, but shall
exclude the fees and expenses of counsel for, and experts employed by, any
party. If the value of shares, as determinedthe canceled options or modified to provide for alternative, nearly equivalent securities. Any outstanding restricted stock award shall be adjusted by allocating to the award recipient any money, stock, securities or other property received by the court, materially exceedsother shareholders of record, and such money, stock, securities or other property shall be subject to the amountsame terms and conditions of the restricted stock award that the Company offeredapplied to pay for the shares then the court may, in
its discretion, award to any Dissenting Shareholder who is a party to the
proceedings, such sum as the court may determine to be reasonable compensation
to any expert(s) employed by the Dissenting Shareholder in the proceeding.
11. Successful assertion by Class B Common Shareholders of their
dissenters' appraisal rights is dependent upon compliance with the requirements
described above. Non-
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compliance with any provision may result in failure to perfect those rights and
the loss of an opportunity to receive payment for shares pursuant to an
appraisal.
Because of the complexity of the provisions of the Florida law relating to
dissenters' appraisal rights, shareholders who are considering dissenting from
the Amendment are urged to consult their own legal advisers.
Appointment Of Independent Auditorswhich it has been exchanged.
Termination or Amendment. The Board of Directors has reappointed KPMG,the authority to suspend or terminate the Plan in whole or in part at any time by giving written notice to the administrative committee. The Board of Directors also has the authority to amend or revise the plan in whole or part at any time, subject to shareholder approval of such revision or amendment if shareholder approval is required by applicable law, rule or regulation. No amendment or termination may affect any option or restricted stock award granted prior to the amendment or termination without the recipient’s consent, unless the administrative committee finds that such amendment or termination is in the best interests of the award recipient or the Company’s shareholders.
Term of Plan. Unless terminated sooner, the Plan will expire on March 7, 2015.
Federal Income Tax Consequences
The following discussion is intended to be a summary and is not a comprehensive description of the federal tax laws, regulations and policies affecting the Company and recipients of restricted stock awards or stock options that
23
may be granted under the Plan. Any descriptions of the provisions of any law, regulation or policy are qualified in their entirety by reference to the particular law, regulation or policy. Any change in applicable law or regulation or in the policies of various taxing authorities may have a significant effect on this summary. The Plan is not a qualified plan under Section 401(a) of the Code.
Restricted Stock Awards. Stock awards granted under the Plan do not result in federal income tax consequences to either the Company or the award recipient. Once the award is vested and the shares subject to the award are distributed, the award recipient is generally required to include in ordinary income, for the taxable year in which the vesting date occurs, an amount equal to the fair market value of the shares on the vesting date. The Company is generally allowed to claim a deduction, for compensation expense, in a like amount. If dividends are paid on unvested shares held under the Plan, such dividend amounts are also included in the ordinary income of the recipient. The Company is generally allowed to claim a deduction for compensation expense for this amount as well.
In certain cases, a recipient of a restricted stock award that is not a performance-based restricted stock award may elect to include the value of the shares subject to a restricted stock award in income for federal income tax purposes when the award is made instead of when it vests.
Stock Options. Incentive stock options do not create federal income tax consequences when they are granted. If incentive stock options are exercised during employment or within three months after termination of employment (one year for termination due to death or disability), the exercise does not create federal income tax consequences. When the shares acquired on exercise of an incentive stock option are sold, the seller must pay federal income taxes on the amount by which the sales price exceeds the purchase price. This amount will be taxed at capital gains rates if the sale occurs at least two years after the option was granted and at least one year after the option was exercised. Otherwise, it is taxed as ordinary income.
Incentive stock options that are exercised more than one year after termination of employment due to death or disability, or three months after termination of employment for other reasons, are treated as non-qualified stock options. Non-qualified stock options do not create federal income tax consequences when they are granted. When non-qualified stock options are exercised, federal income taxes at ordinary income tax rates must be paid on the amount by which the fair market value of the shares acquired by exercising the option exceeds the exercise price. When an option holder sells shares acquired by exercising a non-qualified stock option, he or she must pay federal income taxes on the amount by which the sales price exceeds the purchase price plus the amount included in ordinary income at option exercise. This amount will be taxed at capital gains rates, which will vary depending upon the time that has elapsed since the exercise of the option.
When a non-qualified stock option is exercised, the Company may be allowed a federal income tax deduction for the same amount that the option holder includes in his or her ordinary income. When an incentive stock option is exercised, the Company is not allowed to claim a deduction unless the shares acquired are resold sooner than two years after the option was granted or one year after the option was exercised.
Deduction Limits. The Code places an annual limit of $1 million each on the tax deduction that the Company may claim in any fiscal year for the compensation of its chief executive officer and any other executive officers named in the summary compensation table for that fiscal year included in the Company’s annual proxy statement. There is an exception to this limit for “qualified performance-based compensation.” The Company designed the Plan with the intention that stock options and performance-based restricted stock awards granted under the Plan constitute qualified performance-based compensation. As a result, the Company does not believe that the $1 million limit will impair its ability to claim federal income tax deductions for compensation attributable to future performance-based restricted stock awards and stock options granted under the Plan. The $1 million limit would apply to future restricted stock awards, if any, made to covered employees that are not designated as performance-based restricted stock awards.
The preceding statements are intended to summarize the general principles of current federal income tax law applicable to awards that may be granted under the Plan. State and local tax consequences may also be significant.
24
Future Plan Benefits
Restricted stock awards and option grants under the Plan are discretionary, and the administrative committee has not yet determined to whom and in what amount future awards will be made. As a result, no information is provided concerning future benefits to be delivered under the Plan to any individual or group of individuals.
The foregoing descriptions of the Plan Amendment and the Plan are qualified in their entirety by reference to the full text of the Plan, as proposed to be amended by the Plan Amendment, which is attached to this Proxy Statement as Appendix B and is incorporated herein by reference.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE AMENDMENT TO THE COMPANY’S 2005 STOCK INCENTIVE PLAN.
EQUITY COMPENSATION PLAN INFORMATION
The following table lists all securities authorized for issuance and outstanding under the Company’s equity compensation plans at December 31, 2008:
| Number of Securities | ||||||||||||
| Remaining Available | ||||||||||||
| Number of Securities | Weighted-Average | for Future Issuance | ||||||||||
| to be Issued Upon | Exercise Price of | Under Equity | ||||||||||
| Exercise of | Outstanding | Compensation Plans | ||||||||||
| Outstanding Options | Options | (Excluding Outstanding | ||||||||||
Plan Category | Warrants or Rights | Warrants or Rights | Options) | |||||||||
| Equity compensation plans approved by security holders | 1,797,960 | $ | 4.57 | 2,015,804 | ||||||||
| Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 1,797,960 | $ | 4.57 | 2,015,804 | ||||||||
25
AUDIT COMMITTEE REPORT
The following Report of the Audit Committee does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Company filing under the Securities Act of 1933 or the Exchange Act, except to the extent the Company specifically incorporates this Report by reference therein.
The charter of the Audit Committee sets forth the Audit Committee’s responsibilities, which include oversight of the Company’s financial reporting on behalf of the Board of Directors and shareholders. The Audit Committee held seven meetings during 2008. These meetings were designed, among other things, to facilitate and encourage communication among the Audit Committee and the Company’s management and internal auditors, as well as with the Company’s independent auditor for 2008, PricewaterhouseCoopers LLP (“PwC”). The Audit Committee discussed with the Company’s internal auditors and PwC the overall scope and plans for their respective audits and met with the internal auditors and PwC, with and without management present, to discuss the results of their examinations and their evaluations of the Company’s internal controls and compliance matters. The Audit Committee reviewed and discussed the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2008 with management and PwC prior to the filing of the Company’s Annual Report onForm 10-K with the SEC on March 31, 2009. At its meeting on April , 2009, the Audit Committee approved the engagement of PwC as the Company’s independent auditorsauditor for 2009.
Management has primary responsibility for the Company’s financial statements and the overall reporting process, including the Company’s system of internal controls. The independent auditor audits the annual financial statements prepared by management, expresses an opinion as to whether those financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of the Company in conformity with accounting principles generally accepted in the United States of America, and discusses with the Audit Committee its independence and any other matters that it is required to discuss with the Audit Committee or that it believes should be raised with it. The Audit Committee oversees these processes, although it must rely on information provided to it and on the representations made by management and the independent auditor.
The Audit Committee discussed with PwC the matters required to be discussed with audit committees under generally accepted auditing standards, including, among other things, matters related to the conduct of the audit of the Company’s consolidated financial statements and the matters required to be discussed by Statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1, AU Section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T.
The Audit Committee also received from PwC the written disclosures and the letter required by applicable requirements of the Public Company Accounting Oversight Board regarding PwC’s communications with the Audit Committee concerning independence, and the Audit Committee discussed with PwC its independence from the Company. When considering PwC’s independence, the Audit Committee considered whether PwC’s provision of services to the Company beyond those rendered in connection with its audit and review of the Company’s consolidated financial statements was compatible with maintaining PwC’s independence. The Audit Committee also reviewed, among other things, the amount of fees paid to PwC for audit and non-audit services.
Based on these reviews, meetings, discussions and reports, the Audit Committee recommended to the Board of Directors that the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2008 be included in the Company’s Annual Report onForm 10-K for the fiscal year ended December 31, 2008.
Submitted by the Members of the Audit Committee:
Oscar Holzmann, Chairman
D. Keith Cobb
Neil Sterling
D. Keith Cobb
Neil Sterling
26
FEES TO INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM
FOR FISCAL 2008 AND 2007
FOR FISCAL 2008 AND 2007
PwC served as the independent registered certified public accounting firm for the Company, BankAtlantic Bancorp and Woodbridge for 2008 and 2007. The following table presents, for each of these companies, fees for professional services rendered by PwC for the audit of each company’s annual financial statements for fiscal 2008 and 2007 and fees billed for audit-related services, tax services and all other services rendered by PwC for each of these companies for fiscal 2008 and 2007.
| 2008 | 2007 | |||||||
| (In thousands) | ||||||||
BFC Financial Corporation | ||||||||
| Audit fees | 407 | (1) | 500 | (1) | ||||
| Audit — related fees | — | — | ||||||
| Tax fees | — | — | ||||||
| All other fees | — | 216 | (2) | |||||
BankAtlantic Bancorp | ||||||||
| Audit fees | 1,675 | (1) | 1,659 | (1) | ||||
| Audit — related fees | 77 | (3) | 42 | (3) | ||||
| Tax fees | — | — | ||||||
| All other fees | — | — | ||||||
Woodbridge | ||||||||
| Audit fees | 600 | (1) | 1,197 | (1) | ||||
| Audit — related fees | — | — | ||||||
| Tax fees | — | — | ||||||
| All other fees | — | — | ||||||
| (1) | Includes primarily fees for services related to each company’s respective annual financial statement audits, the 2008 and 2007 audits of effectiveness of internal control over financial reporting and the review of quarterly financial statements filed in each company’s Quarterly Reports onForm 10-Q. The Company’s fiscal 2007 amount also includes fees related to the merger of I.R.E RAG with and into the Company and the amendments to the Company’s Annual Report onForm 10-K/A for the year ended December 31, 2006 and Quarterly Report onForm 10-Q/A for the quarter ended March 31, 2007. Woodbridge’s fiscal 2007 amount also includes fees related to services performed by PwC with respect to Woodbridge’s 2007 rights offering, the amendments to Woodbridge’s Annual Report onForm 10-K/A for the year ended December 31, 2006 and Quarterly Report onForm 10-Q/A for the quarter ended March 31, 2007 and the November 9, 2007 bankruptcy filing of Levitt and Sons and substantially all of its subsidiaries. | |
| (2) | Principally related to the preparation and filing of the Registration Statement onForm S-3 and Amendment No. 1 thereto, in each case related to the Company’s 2007 underwritten public offering of 11,500,000 shares of Class A Stock. | |
| (3) | Represents fees related to audits of BankAtlantic Bancorp’s employee benefit plans and, for 2008, fees related to BankAtlantic Bancorp’s Shelf Registration Statement onForm S-3, filed with the SEC during April 2008, which registered up to $100 million of BankAtlantic Bancorp’s securities. |
All audit-related services and other services were pre-approved by the audit committee of the respective company, which concluded that the provision of such services by PwC was compatible with the maintenance of PwC’s independence in the conduct of its auditing functions. Under the charter of the Company’s Audit Committee, the Audit Committee must review and pre-approve both audit and permitted non-audit services provided by the independent auditor and shall not engage the independent auditor to perform any non-audit services prohibited by law or regulation. Each year, the independent auditor’s retention to audit the Company’s financial statements, including the associated fee, is approved by the Audit Committee. Under its current practices, the Audit Committee does not regularly evaluate potential engagements of the independent auditor and approve or reject such potential
27
engagements. At each Audit Committee meeting, the Audit Committee receives updates on the services actually provided by the independent auditor, and management may present additional services for pre-approval. The Audit Committee has delegated to the Chairman of the Audit Committee the authority to evaluate and approve engagements involving projected fees of $10,000 or less on behalf of the Audit Committee in the event that a need arises for pre-approval between regular Audit Committee meetings. If the Chairman so approves any such engagements, he will report that approval to the full Audit Committee at the next Audit Committee meeting. Engagements involving projected fees of more than $10,000 may only be pre-approved by the full Audit Committee at a regular or special meeting of the Audit Committee.
The Audit Committee has determined that the provision of the services described above (including those services other than audit services) are compatible with maintaining the principal independent registered certified public accounting firm’s independence.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth, as of April 2, 2009, certain information as to the Company’s Class A Stock and Class B Stock beneficially owned by persons known by the Company to own in excess of 5% of the outstanding shares of such stock. In addition, this table includes the outstanding securities beneficially owned by (i) each Named Executive Officer, (ii) each of the Company’s directors as of April 2, 2009 and (iii) the Company’s directors and executive officers as of April 2, 2009 as a group. Management knows of no person, except as listed below, who beneficially owned more than 5% of the outstanding shares of the Company’s Class A Stock or Class B Stock as of April 2, 2009. Except as otherwise indicated, the information provided in the following table was obtained from filings with the SEC and with the Company pursuant to the Exchange Act. For purposes of the table below, in accordance withRule 13d-3 under the Exchange Act, a person is deemed to be the beneficial owner of any shares which he or she has or shares, directly or indirectly, voting or investment power, or which he or she has the right to acquire beneficial ownership of at any time within 60 days after April 2, 2009. As used herein, “voting power” is the power to vote, or direct the voting of, shares, and “investment power” includes the power to dispose of, or direct the disposition of, such shares. Unless otherwise noted, each beneficial owner has sole voting and sole investment power over the shares beneficially owned.
| Class A | Class B | Percent of | Percent of | |||||||||||||||||
| Stock | Stock | Class A | Class B | |||||||||||||||||
Name of Beneficial Owner | Notes | Ownership | Ownership | Stock | Stock | |||||||||||||||
| Florida Partners Corporation | (1,2,4,5 | ) | 1,270,302 | 133,314 | 3.7 | % | 1.9 | % | ||||||||||||
| I.R.E. Properties, Inc. | (1,2,4,5 | ) | 4,662,927 | 561,017 | 13.5 | % | 8.2 | % | ||||||||||||
| Levan Enterprises, Ltd. | (1,2,4,5 | ) | 1,298,749 | 146,865 | 3.8 | % | 2.1 | % | ||||||||||||
| Alan B. Levan | (1,2,3,4,5,6,7 | ) | 11,437 | 2,312,485 | 5.7 | % | 32.6 | % | ||||||||||||
| John E. Abdo | (1,2,3,4,6,7 | ) | 3,356,771 | 3,180,047 | 15.8 | % | 44.9 | % | ||||||||||||
| John K. Grelle | (2 | ) | — | — | 0.0 | % | 0.0 | % | ||||||||||||
| D. Keith Cobb | (1,2,3 | ) | 97,656 | 6,250 | * | * | ||||||||||||||
| Oscar Holzmann | (1,2,3 | ) | 164,361 | 20,290 | * | * | ||||||||||||||
| Neil Sterling | (1,2,3 | ) | 164,361 | 20,290 | * | * | ||||||||||||||
| GoldenTree Asset Management LP | (8 | ) | 4,800,000 | — | 12.5 | % | 0.0 | % | ||||||||||||
| Dr. Herbert A. Wertheim | (1,9 | ) | 3,968,157 | 416,448 | 10.4 | % | 6.1 | % | ||||||||||||
| SC Fundamental Value Fund L.P. | (10 | ) | 3,720,461 | — | 9.7 | % | 0.0 | % | ||||||||||||
| All directors and executive officers of the Company as of April 2, 2009 as a group (7 persons) | (1,3,4,5,6,7 | ) | 11,026,564 | 6,387,580 | 38.7 | % | 86.9 | % | ||||||||||||
| * | Less than one percent of class. |
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| (1) | Class B Stock is convertible on a share-for-share basis at any time at the beneficial owner’s discretion. However, see footnote 6 below regarding restrictions on Mr. Abdo’s right to convert his shares of Class B Stock into shares of Class A Stock. The number of shares of Class B Stock held by each beneficial owner is not separately included in the “Class A Stock Ownership” column, but is included for the purpose of calculating the percent of Class A Stock held by each beneficial owner. | |
| (2) | Mailing address is 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309. | |
| (3) | Includes shares that may be acquired within 60 days after April 2, 2009 pursuant to the exercise of stock options to purchase Class A Stock or Class B Stock as follows: Alan B. Levan — 210,579 shares of Class B Stock; John E. Abdo — 210,579 shares of Class B Stock; D. Keith Cobb — 6,250 shares of Class B Stock; Oscar Holzmann — 164,361 shares of Class A Stock and 20,290 shares of Class B Stock; Neil Sterling — 164,361 shares of Class A Stock and 20,290 shares of Class B Stock; and Maria Scheker — 7,022 shares of Class B Stock. | |
| (4) | The Company may be deemed to be controlled by Messrs. Levan and Abdo, who collectively may be deemed to have an aggregate beneficial ownership of shares of the Company’s Class A Stock and Class B Stock, including shares that may be acquired pursuant to the exercise of stock options (as set forth in footnote 3 above), representing 73.8% of the total voting power of the Company. | |
| (5) | I.R.E. Properties, Inc. is 100% owned by Levan Enterprises, Ltd., and Levan Enterprises, Ltd. may be deemed to be the controlling shareholder of Florida Partners Corporation. Levan Enterprises, Ltd. is a limited partnership whose sole general partner is Levan General Corp., a corporation 100% owned by Mr. Levan. Therefore, Mr. Levan may be deemed to be the beneficial owner of the shares of the Company’s Class A Stock and Class B Stock owned by each of such entities. In addition to Mr. Levan’s personal holdings of the Company’s Class A Stock and Class B Stock, Mr. Levan may be deemed to be the beneficial owner of 11,437 shares of Class A Stock and 1,200 shares of Class B Stock held of record by his wife. Excluding shares of Class B Stock beneficially owned by Mr. Levan (which are convertible at any time in Mr. Levan’s discretion on a share-for-share basis into Class A Stock), Mr. Levan may be deemed to beneficially own, in the aggregate, 7,243,415 shares, or 18.9%, of the Company’s Class A Stock. Mr. Levan may also be deemed to beneficially own, in the aggregate, 3,153,681 shares, or 44.5%, of the Company’s Class B Stock. Collectively, these shares represent approximately 37.9% of the total voting power of the Company. | |
| (6) | Messrs. Levan and Abdo have agreed to vote their shares of Class B Stock in favor of the election of the other to the Company’s Board of Directors for so long as they are willing and able to serve as directors of the Company. Additionally, Mr. Abdo has agreed, subject to certain exceptions, not to transfer certain of his shares of Class B Stock and to obtain the consent of Mr. Levan prior to the conversion of certain of his shares of Class B Stock into shares of Class A Stock. | |
| (7) | Includes beneficial ownership of shares subject to plans adopted under Rule 10b5-1 of the Exchange Act as follows: Mr. Levan — 71,250 shares of Class B Stock; and Mr. Abdo — 75,000 shares of Class A Stock. | |
| (8) | Based on the Schedule 13G/A filed with the SEC on February 6, 2009, a group consisting of GoldenTree Asset Management LP and certain of its affiliates have shared voting and dispositive power over all such shares. The mailing address of GoldenTree Asset Management LP and each of the other group members is 300 Park Avenue, 21st Floor, New York, New York 10022. | |
| (9) | Dr. Wertheim’s ownership was reported in a Rebuttal of Control Agreement filed on December 20, 1996 with the Office of Thrift Supervision (as adjusted for stock splits since the date of filing). The Rebuttal of Control Agreement indicates that Dr. Wertheim has no intention to manage or control, directly or indirectly, the Company. Dr. Wertheim’s mailing address is 191 Leucadendra Drive, Coral Gables, Florida 33156. | |
| (10) | Based on the Schedule 13G/A filed with the SEC on February 13, 2009, a group consisting of SC Fundamental Value Fund L.P. and certain of its affiliates have shared voting and dispositive power over all such shares. The mailing address of SC Fundamental Value Fund, L.P. and each of the other group members (other than SC Fundamental Value BVI, Ltd.) is 747 Third Avenue, 27th Floor, New York, New York 10017. The mailing address of SC Fundamental Value BVI, Ltd. isc/o MadisonGrey Fund Services (Cayman) Ltd., Ground Floor, Windward 1, Regatta Office Park, West Bay Road, Grand Cayman. |
29
OTHER MATTERS
As of the date of this Proxy Statement, the Board of Directors is not aware of any matters, other than those referred to in the accompanying Notice of Meeting, which may be brought before the Annual Meeting.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF
PROXY MATERIALS FOR THE ANNUAL SHAREHOLDER MEETING
TO BE HELD ON MAY 19, 2009
PROXY MATERIALS FOR THE ANNUAL SHAREHOLDER MEETING
TO BE HELD ON MAY 19, 2009
This Proxy Statement (including the accompanying form of proxy card) and the Company’s Annual Report to Shareholders for the current fiscal year.
Representativesyear ended December 31, 2008 are available at .
INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP served as the Company’s independent registered certified public accounting firm for the year ended December 31, 2008. A representative of the firm of KPMG,PricewaterhouseCoopers LLP areis expected to be present at the Annual Meeting, and will have anthe opportunity to make a statement if theyhe or she desires to do so,
desire and will be available to respond to appropriate questions.
Other Information
Stockholders'questions from shareholders.
ADDITIONAL INFORMATION
“Householding” of Proxy Material. The SEC has adopted rules that permit companies and intermediaries such as brokers to satisfy delivery requirements for proxy statements with respect to two or more shareholders sharing the same address by delivering a single proxy statement addressed to those shareholders. This process, which is commonly referred to as “householding,” potentially provides extra convenience for shareholders and cost savings for companies. The Company and some brokers household proxy materials, delivering a single proxy statement to multiple shareholders sharing an address unless contrary instructions have been received from the affected shareholders. Once you have received notice from your broker or the Company’s transfer agent, American Stock Transfer & Trust Company (“AST”), that they or the Company will be householding materials to your address, householding will continue until you are notified otherwise or until you revoke your consent. However, the Company will deliver promptly upon written or oral request a separate copy of this Proxy Statement to a shareholder at a shared address to which a single Proxy Statement was delivered. If, at any time, you no longer wish to participate in householding and would prefer to receive a separate proxy statement, or if you are receiving multiple proxy statements and would like to request delivery of a single proxy statement, please notify your broker if your shares are held in a brokerage account or AST if you or the record holder of your shares. You can notify AST by calling800-937-5449 or by sending a written request to American Stock Transfer & Trust Company, 59 Maiden Lane — Plaza Level, New York, NY 10038, Attn: Marianela Patterson.
Advance Notice Procedures. Under the Company’s Bylaws, no business may be brought before an annual meeting of shareholders unless it is specified in the notice of the annual meeting of shareholders or is otherwise brought before the annual meeting of shareholders by or at the direction of the Board of Directors or by a shareholder entitled to vote who has delivered written notice to the Company’s Secretary (containing certain information specified in the Company’s Bylaws about the shareholder and the proposed action) not less than 90 or more than 120 days prior to the first anniversary of the preceding year’s annual meeting of shareholders — that is, with respect to the annual meeting of shareholders to be held during 2010, between January 19 and February 18, 2010. In addition, any shareholder who wishes to submit a nomination to the Board of Directors must deliver written notice of the nomination within this time period and comply with the information requirements in the Company’s Bylaws relating to shareholder nominations. These requirements are separate from and in addition to the SEC’s
30
requirements that a shareholder must meet in order to have a shareholder proposal included in the Company’s proxy statement relating to the 2010 annual meeting of shareholders.
Shareholder Proposals For Nextfor the 2010 Annual Meeting Stockholders'of Shareholders. Shareholders interested in submitting a proposal for inclusion in the proxy materials for the 2010 annual meeting of shareholders may do so by following the procedures prescribed in Rulel4a-8 under the Exchange Act. To be eligible for inclusion, shareholder proposals intended to be presented at the 2003 Annual Meeting must be received by the Company’s Secretary at the Company’s main offices, 2100 West Cypress Creek Road, Fort Lauderdale, Florida 33309, by December , 2009.
Proxy Solicitation Costs. The Company no later than December 23, 2002, for inclusion inwill bear the Company 's proxy statement and formexpense of proxy for that meeting.
Expenses Of Solicitation
The cost of preparing, assembling, and mailing the proxy materialsoliciting proxies and of reimbursing brokers, nominees,banks and fiduciariesnominees for the out-of-pocket and clerical expenses of transmitting copies of the proxy materialmaterials to the beneficial owners of shares held of record by such persons will be borne by the Company.persons. The Company does not currently intend to solicit proxies otherwiseother than by use of the mail, but certain directors, officers and regular employees of the Company or its subsidiaries, BankAtlantic Bancorpand/or Woodbridge, without additional compensation, may use their personal efforts,solicit proxies personally or by telephone, fax, special letter or otherwise, to obtain proxies. The proxy materials are first being mailed to
stockholders of record at the close of business on April ____, 2002.
-24-
Other Business
The Board of Directorsotherwise.
BY ORDER OF THE BOARD OF DIRECTORS
Alan B. Levan
Chairman of the Company does not know of any other matters that
are to be presented for action at the meeting. Should any other matter come
before the meeting, however, the persons named in the enclosed proxy shall have
discretionary authority to vote all shares represented by valid proxies with
respect to such matter in accordance with their judgment.
* * * * * * * * * * * * * * * * * * * * * * * * * * *
By Order of the Board of Directors
/s/ Glen R. Gilbert
-------------------
Glen R. Gilbert
Secretary
April ____, 2002
A COPY OF THE FORM 10-K AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
WILL BE FURNISHED WITHOUT CHARGE TO BENEFICIAL OWNERS OF THE COMPANY'S COMMON
STOCK AS OF THE RECORD DATE UPON WRITTEN REQUEST TO GLEN R. GILBERT, SECRETARY,
BFC FINANCIAL CORPORATION, P.O. BOX 5403, FORT LAUDERDALE, FL 33310-5403. IN
ADDITION, FINANCIAL REPORTS AND RECENT FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION INCLUDING THE FORM 10-K ARE AVAILABLE ON THE INTERNET AT www.sec.gov.
-25-
, 2009
31
Appendix A
PROPOSED
FORM OF ARTICLES OF AMENDMENT
TO THE AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
BFC FINANCIAL CORPORATION
TO THE AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
BFC FINANCIAL CORPORATION
The Amended and Restated Articles of Incorporation, as amended, of BFC FINANCIAL CORPORATION, a Florida corporation (the "Corporation"“Corporation”), are hereby amended pursuant to the provisions of Section 607.1006 of the Florida Business Corporation Act, and such amendments are set forth as follows:
1. Section 3The first sentence of the second paragraph of Article V shall beIV is hereby deleted in its entirety and replaced with the following:
“Special Class A Common Stock: The Corporation is authorized to issue 100,000,000 shares of Special Class A Common Stock at a par value of $.01 per share.”
2. The first two paragraphs of Section 6 of Article V are hereby deleted in their entirety and replaced with the following:
“1. Designation and Amount. The shares of such series shall be designated “Class A Common Stock” (the “Class A Common Stock”) and the number of shares constituting such series shall be 100,000,000.”
Appendix B
BFC FINANCIAL CORPORATION
2005 STOCK INCENTIVE PLAN
2005 STOCK INCENTIVE PLAN
1. PURPOSES. The purposes of this BFC Financial Corporation 2005 Stock Incentive Plan (the “Plan”) are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to the Employees of the Company or its Subsidiaries (as defined in Section 2 below) as well as other individuals who perform services for the Company and its Subsidiaries, and to promote the success and profitability of the Company’s business. Options granted hereunder may be either “incentive stock options,” as defined in Section 422 of the Internal Revenue Code of 1986, as amended, or “non-qualified stock options,” at the discretion of the Committee (as defined in Section 2 below) and as reflected in the terms of the Stock Option Agreement (as defined in Section 2 below).
2. DEFINITIONS. As used herein, the following definitions shall apply:
(a) “Award Notice” shall mean, with respect to reada particular Restricted Stock Award, a written instrument signed by the Company and the recipient of the Restricted Stock Award evidencing the Restricted Stock Award and establishing the terms and conditions thereof.
(b) “Award Recipient” shall mean the recipient of a Restricted Stock Award.
(c) “Beneficiary” shall mean the Person designated by an Award Recipient to receive any Shares subject to a Restricted Stock Award made to such Award Recipient that become distributable following the Award Recipient’s death.
(d) “Board of Directors” shall mean the Board of Directors of the Company.
(e) “Class A Common Stock” shall mean the Class A common stock, par value $0.01 per share, of the Company.
(f) “Code” shall mean the Internal Revenue Code of 1986, as follows:amended.
(g) “Committee” shall mean the Committee appointed by the Board of Directors in accordance with paragraph (a) of Section 4 of the Plan.
(h) “Company” shall mean BFC Financial Corporation, a Florida corporation, and its successors and assigns.
(i) “Continuous Status as an Employee” shall mean the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of sick leave, military leave, or any other leave of absence approved by the Board of Directors of the Company or the Committee. Continuous Status as an Employee shall not be deemed terminated or interrupted by a termination of employment followed immediately by service as a non-Employee director of the Company or one or more of its Subsidiaries until a subsequent termination of all service as either a non-Employee director or an Employee.
(j) “Covered Employee” shall mean, for any taxable year of the Company, a person who is, or who the Committee determines is reasonably likely to be, a “covered employee” (within the meaning of section 162(m) of the Code).
(k) “Disability” shall mean permanent and total disability as defined in Section 22(e)(3) of the Code.
(l) “Employee” shall mean any person, including officers and directors, employed by the Company or any Parent or Subsidiary of the Company. The payment of a director’s fee by the Company shall not be sufficient to constitute “employment” by the Company.
(m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
B-1
(n) “Fair Market Value” shall be determined by the Committee in its discretion; provided, however, that where there is a public market for the Class A Common Stock, the fair market value per Share shall be (i) if the Class A Common Stock is listed or admitted for trading on any United States national securities exchange, or if actual transactions are otherwise reported on a consolidated transaction reporting system, the closing price of such stock on such exchange or reporting system, as the case may be, on the relevant date, as reported in any newspaper of general circulation, or (ii) if the Class A Common Stock is quoted on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) System, or any similar system of automated dissemination of quotations of securities prices in common use, the mean between the closing bid and asked quotations for such stock on the relevant date, as reported by a generally recognized reporting service.
(o) “Incentive Stock Option” shall mean a stock option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.
(p) “Nonqualified Stock Option” shall mean a stock option not intended to qualify as an Incentive Stock Option or a stock option that at the time of grant, or subsequent thereto, fails to satisfy the requirements of Section 422 of the Code.
(q) “Option” shall mean a stock option granted pursuant to the Plan.
(r) “Optioned Stock” shall mean the Class A Common Stock subject to an Option.
(s) “Optionee” shall mean the recipient of an Option.
(t) “Parent” shall mean a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.
(u) “Performance-Based Restricted Stock Award” shall mean a Restricted Stock Award to which Section 8.3 is applicable.
(v) “Performance Goal” shall mean, with respect to any Performance-Based Restricted Stock Award, the performance goal(s) established pursuant to Section 8.3(a), the attainment of which is a condition of vesting of the Performance-Based Restricted Stock Award.
(w) “Performance Measurement Period” shall mean, with respect to any Performance Goal, the period of time over which attainment of the Performance Goal is measured.
(x) “Person” shall mean an individual, a corporation, a partnership, a limited liability company, an association, a joint-stock company, a trust, an estate, an unincorporated organization and any other business organization or institution.
(y) “Restricted Stock Award” shall mean an award of Shares pursuant to Section 8.
(z) “Rule 16b-3” shall meanRule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act or any successor rule.
(aa) “Service” shall mean, unless the Committee provides otherwise in an Award Notice: (a) service in any capacity as a common-law employee, director, advisor or consultant to the Company or a Parent or Subsidiary; (b) service in any capacity as a common-law employee, director, advisor or consultant (including periods of contractual availability to perform services under a retainer arrangement) to an entity that was formerly a Parent or Subsidiary, to the extent that such service is an uninterrupted continuation of services being provided immediately prior to the date on which such entity ceased to be a Parent or Subsidiary; and (c) performance of the terms of any contractual non-compete agreement for the benefit of the Company or a Parent or Subsidiary.
(bb) “Share” shall mean a share of the Class A Common Stock, as adjusted in accordance with Section 9 of the Plan.
(cc) “Stock Option Agreement” shall mean the written option agreements described in Section 14 of the Plan.
B-2
(dd) “Subsidiary” shall mean a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.
(ee) “Transferee” shall mean a “transferee” of the Optionee as defined in Section 7.4 of the Plan.
3. Voting. STOCK. Subject to the provisions of Section 9 of the Plan, the maximum aggregate number of Shares which may be issued for Restricted Stock Awards and upon the exercise of Options under the Plan is 6,000,000 Shares. During any calendar year, individuals who are Covered Employees may not be issued in the aggregate Shares covered by Restricted Stock Awards or Options in excess of the full amount of Shares available for grant under the Plan. If an Option or Restricted Stock Award should expire or become unexercisable for any reason without having been exercised or vested in full, the unpurchased Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for further grant under the Plan.
Subject to the provisions of Section 9 of the Plan, no person shall be granted Options under the Plan in any calendar year covering an aggregate of more than the full amount of Shares available for grant under the Plan. If an Option should expire, become unexercisable for any reason without having been exercised in full, or be cancelled for any reason during the calendar year in which it was granted, the number of Shares covered by such Option shall nevertheless be treated as Options granted for purposes of the limitation in the preceding sentence.
4. ADMINISTRATION.
(a) Procedure. The Plan shall be administered by a Committee appointed by the Board of Directors, which initially shall be the Compensation Committee of the Company. The Committee shall consist of not less than two (2) members of the Board of Directors. Once appointed, the Committee shall continue to serve until otherwise directed by the Board of Directors. From time to time the Board of Directors, at its discretion, may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause), and appoint new members in substitution therefor, and fill vacancies however caused; provided, however, that at no time shall a Committee of less than two (2) members of the Board of Directors administer the Plan. If the Committee does not exist, or for any other reason determined by the Board of Directors, the Board may take any action and exercise any power, privilege or discretion under the Plan that would otherwise be the responsibility of the Committee.
(b) Powers of the Committee. Subject to the provisions of the Plan, the Committee shall have the authority, in its discretion: (i) to grant Incentive Stock Options, in accordance with Section 422 of the Code, to grant Nonqualified Stock Options or to grant Restricted Stock Awards; (ii) to determine, upon review of relevant information, the Fair Market Value of the Class A Common Stock; (iii) to determine the exercise price per share of Options to be granted or consideration for Restricted Stock Awards; (iv) to determine the persons to whom, and the time or times at which, Options and Restricted Stock Awards shall be granted and the number of Shares to be represented by each Option or Restricted Stock Award; (v) to determine the vesting schedule of the Options and Restricted Stock Awards to be granted; (vi) to interpret the Plan; (vii) to prescribe, amend and rescind rules and regulations relating to the Plan; (viii) to determine the terms and provisions of each Option or Restricted Stock Award granted (which need not be identical) and, with the consent of the holder thereof if required, modify or amend each Option or Restricted Stock Award; (ix) to accelerate or defer (with the consent of the holder thereof) the exercise or vesting date of any Option or the vesting date of any Restricted Stock Award; (x) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Option or Restricted Stock Award previously granted by the Committee; (xi) to substitute new Options or Restricted Stock Awards for previously granted Options or Restricted Stock Awards, as the case may be, which previously granted Options or Restricted Stock Awards contain less favorable terms, including, in the case of Options, higher exercise prices (for example, a “re-pricing”), providing that any such substitution would not result in penalties imposed by Section 409A of the Code; and (xii) to make all other determinations deemed necessary or advisable for the administration of the Plan.
(c) Effect of the Committee’s Decision. All decisions, determinations and interpretations of the Committee shall be final and binding on all Optionees, Award Recipients or Transferees, if applicable.
5. ELIGIBILITY. Incentive Stock Options may be granted only to Employees. Nonqualified Stock Options and Restricted Stock Awards may be granted to Employees as well as directors, independent contractors and agents who are natural persons (but only if such Options or Restricted Stock Awards are granted as compensation for
B-3
personal services rendered by the independent contractor or agent to the Company or a Subsidiary that are not services in connection with the offer or sale of securities in a capital-raising transaction or services that directly or indirectly promote or maintain a market for the Company’s securities), as determined by the Committee. Any person who has been granted an Option or Restricted Stock Award may, if he is otherwise eligible, be granted an additional Option or Options or Restricted Stock Award.
Except as otherwise provided under the Code, to the extent that the aggregate Fair Market Value of Shares for which Incentive Stock Options (under all stock option plans of the Company and of any Parent or Subsidiary) are exercisable for the first time by an Employee during any calendar year exceeds $100,000, such excess Options shall be treated as Nonqualified Stock Options. For purposes of this limitation, (a) the Fair Market Value of Shares is determined as of the time the Option is granted and (b) the limitation is applied by taking into account Options in the order in which they were granted.
The Plan shall not constitute a contract of employment nor shall the Plan confer upon any Optionee or Award Recipient any right with respect to continuation of employment or continuation of providing services to the Company, nor shall it interfere in any way with his right or the Company’s or any Parent or Subsidiary’s right to terminate his employment or his provision of services at any time.
6. TERM OF PLAN. The Plan shall continue in effect ten (10) years from the date of its adoption by the Board of Directors, unless sooner terminated under Section 11 of the Plan.
7. STOCK OPTIONS.
7.1 Term of Option. The term of each Option shall be ten (10) years from the date of grant thereof or such shorter term as may be provided in the Stock Option Agreement. However, in the case of an Incentive Stock Option granted to an Employee who, immediately before the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter time as may be provided in such Optionee’s Stock Option Agreement.
7.2 Exercise Price and Consideration.
(a) Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as determined by the Committee, but shall be subject to the following:
(i) In the case of an Incentive Stock Option which is
(A) granted to an Employee who, immediately before the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one hundred and ten percent (110%) of the Fair Market Value per Share on the date of grant.
(B) granted to an Employee not within (A), the per share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
(C) In the case of a Nonqualified Stock Option, the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
(b) Certain Corporate Transactions. In the event the Company substitutes an Option for a stock option issued by another corporation in connection with a corporate transaction, such as a merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or partial or complete liquidation involving the Company and such other corporation, the exercise price of such substituted Option shall be as determined by the Committee in its discretion (subject to the provisions of Section 424(a) of the Code in the case of a stock option that was intended to qualify as an “incentive stock option”) to preserve, on a per Share basis immediately after such corporate transaction, the same ratio of Fair Market Value per Option Share to exercise price per Share which existed immediately prior to such corporate transaction under the option issued by such other corporation.
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(c) Payment. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Committee and may consist entirely of cash, check, promissory note, or other shares of the Company’s capital stock having a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, or any combination of such methods of payment, or such other consideration and method of payment for the issuance of Shares to the extent permitted under the law of the Company’s jurisdiction of incorporation. The Committee may also establish coordinated procedures with one or more brokerage firms for the “cashless exercise” of Options, whereby Shares issued upon exercise of an Option are delivered against payment by the brokerage firm on the Optionee’s behalf. When payment of the exercise price for the Shares to be issued upon exercise of an Option consists of shares of the Company’s capital stock, such shares will not be accepted as payment unless the Optionee or Transferee, if applicable, has held such shares for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes.
7.3 Exercise Of Option.
(a) Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Committee, including performance criteria with respect to the Company or its Subsidiariesand/or the Optionee, and as shall be permissible under the terms of the Plan. An Option may not be exercised for a fraction of a Share. An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the Committee, consist of any consideration and method of payment allowable under Section 7.2(c) of the Plan. Until the issuance of the stock certificate evidencing such Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), which in no event will be delayed more than thirty (30) days from the date of the exercise of the Option, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in this Article V (orthe Plan. Exercise of an Option in any supplementary sections thereto)manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.
(b) Termination of Status as an Employee. Subject to this Section 7.3(b), if any Employee ceases to be in Continuous Status as an Employee, he or any Transferee may, but only within thirty (30) days or such other period of time not exceeding three (3) months as is determined by the Committee (or, provided that the applicable Option is not to be treated as an Incentive Stock Option, such longer period of time as may be determined by the Committee) after the date he ceases to be an Employee, exercise his Option to the extent that he or any Transferee was entitled to exercise it as of the date of such termination. To the extent that he or any Transferee was not entitled to exercise the Option at the date of such termination, or if he or any Transferee does not exercise such Option (which he or any Transferee was entitled to exercise) within the time specified herein, the Option shall terminate. If any Employee ceases to serve as an Employee as a result of a termination for cause (as determined by the Committee), any Option held by such Employee or any Transferee shall terminate immediately and automatically on the date of his termination as an Employee unless otherwise determined by the Committee. Notwithstanding the foregoing, if an Employee ceases to be in Continuous Status as an Employee solely due to a reorganization, merger, consolidation, spin-off, combination, re-assignment to another member of the affiliated group of which the Company is a member or other similar corporate transaction or event, the Committee may, in its discretion, suspend the operation of this Section 7.3(b); provided that the Employee shall execute an agreement, in form and substance satisfactory to the Committee, waiving such Employee’s right to have such Employee’s Options treated as Incentive Stock Options from and after a date determined by the Committee which shall be no later than three months from the date on which such Employee ceases to be in Continuous Status as an Employee, and such Employee’s Options shall thereafter be treated as Nonqualified Options for all rightspurposes.
(c) Disability of Optionee. Notwithstanding the provisions of Section 7.3(b) above, in the event an Employee is unable to votecontinue his employment as a result of his Disability, he or any Transferee may, but only within three (3) months or such other period of time not exceeding twelve (12) months as is determined by the Committee (or,
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provided that the applicable Option is not to be treated as an Incentive Stock Option, such longer period of time as may be determined by the Committee) from the date of termination of employment, exercise his Option to the extent he or any Transferee was entitled to exercise it at the date of such Disability. To the extent that he or any Transferee was not entitled to exercise the Option at the date of Disability, or if he or any Transferee does not exercise such Option (which he or any Transferee was entitled to exercise) within the time specified herein, the Option shall terminate.
(d) Death of Optionee. In the event of the death of an Optionee:
(i) during the term of the Option and all voting power
(including, without limitation,who is at the time of his death an Employee and who shall have been in Continuous Status as an Employee since the date of grant of the Option, the Option may be exercised at any time within twelve (12) months (or, provided that the applicable Option is not to be treated as an Incentive Stock Option, such longer period of time as may be determined by the Committee) following the date of death, by the Optionee’s estate, by a person who acquired the right to elect directors)exercise the Option by bequest or inheritance, or by any Transferee, as the case may be, but only to the extent of the right to exercise that would have accrued had the Optionee continued living one (1) month after the date of death; or
(ii) within thirty (30) days or such other period of time not exceeding three (3) months as is determined by the Committee (or, provided that the applicable Option is not to be treated as an Incentive Stock Option, such longer period of time as may be determined by the Committee) after the termination of Continuous Status as an Employee, the Option may be exercised, at any time within three (3) months following the date of death, by the Optionee’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance, or by any Transferee, as the case may be, but only to the extent of the right to exercise that had accrued at the date of termination.
7.4 Transferability Of Options. During an Optionee’s lifetime, an Option may be exercisable only by the Optionee and an Option granted under the Plan and the rights and privileges conferred thereby shall not be subject to execution, attachment or similar process and may not be sold, pledged, assigned, hypothecated, transferred or otherwise disposed of in any manner (whether by operation of law or otherwise) other than by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted by applicable law andRule 16b-3, the Committee may determine that an Option may be transferred by an Optionee to any of the following: (1) a family member of the Optionee; (2) a trust established primarily for the benefit of the Optioneeand/or a family member of said Optionee in which the Optioneeand/or one or more of his family members collectively have a more than 50% beneficial interest; (3) a foundation in which such persons collectively control the management of assets; (4) any other legal entity in which such persons collectively own more than 50% of the voting interests; or (5) any charitable organization exempt from income tax under Section 501(c)(3) of the Code (collectively, a “Transferee”); provided, however, in no event shall an Incentive Stock Option be transferable if such transferability would violate the applicable requirements under Section 422 of the Code. Any other attempt to sell, pledge, assign, hypothecate, transfer or otherwise dispose of any Option under the Plan or of any right or privilege conferred thereby, contrary to the provisions of the Plan, or the sale or levy or any attachment or similar process upon the rights and privileges conferred hereby, shall be vested
exclusivelynull and void.
8. RESTRICTED STOCK AWARDS.
8.1 In General.
(a) Each Restricted Stock Award shall be evidenced by an Award Notice issued by the Committee to the Award Recipient containing such terms and conditions not inconsistent with the Plan as the Committee may, in its discretion, prescribe, including, without limitation, any of the following terms or conditions:
(i) the number of Shares covered by the Restricted Stock Award;
(ii) the amount (if any) which the Award Recipient shall be required to pay to the Company in consideration for the issuance of such Shares (which shall in no event be less than the minimum amount required for such Shares to be validly issued, fully paid and nonassessable under applicable law);
(iii) whether the Restricted Stock Award is a Performance-Based Award and, if it is, the applicable Performance Goal or Performance Goals;
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(iv) the date of grant of the Restricted Stock Award; and
(v) the vesting date for the Restricted Stock Award.
(b) All Restricted Stock Awards shall be in the form of issued and outstanding Shares that shall be either:
(i) registered in the name of the Committee for the benefit of the Award Recipient and held by the Committee pending the vesting or forfeiture of the Restricted Stock Award;
(ii) registered in the name of Award Recipient and held by the Committee, together with a stock power executed by the Award Recipient in favor of the Committee, pending the vesting or forfeiture of the Restricted Stock Award; or
(iii) registered in the name of and delivered to the Award Recipient.
In any event, the certificates evidencing the Shares shall at all times prior to the applicable vesting date bear the following legend:
The Class A Common Stock evidenced hereby is subject to the terms of a Restricted Stock Award agreement between BFC Financial Corporation and [Name of Award Recipient] dated [Date] made pursuant to the terms of the BFC Financial Corporation 2005 Stock Incentive Plan, copies of which are on file at the executive offices of BFC Financial Corporation, and may not be sold, encumbered, hypothecated or otherwise transferred except in accordance with the terms of such Plan and Agreement.
and/or such other restrictive legend as the Committee, in its discretion, may specify.
(c) Except as otherwise provided by the Committee, a Restricted Stock Award shall not be transferable by the Award Recipient other than by will or by the laws of descent and distribution, and the Shares granted pursuant to such Restricted Stock Award shall be distributable, during the lifetime of the Award Recipient, only to the Award Recipient.
8.2 Vesting Date.
(a) The vesting date for each Restricted Stock Award shall be determined by the Committee and specified in the Award Notice and, if no date is specified in the Award Notice, shall be the first anniversary of the date on which the Restricted Stock Award is granted. Unless otherwise determined by the Committee and specified in the Award Notice:
(i) if the Service of an Award Recipient is terminated prior to the vesting date of a Restricted Stock Award for any reason other than death or Disability, any unvested Shares shall be forfeited without consideration (other than a refund to the Award Recipient of an amount equal to the lesser of (A) the cash amount, if any, actually paid by the Award Recipient to the Company for the Shares being forfeited and (B) the Fair Market Value of such Shares on the date of forfeiture);
(ii) if the Service of an Award Recipient is terminated prior to the vesting date of a Restricted Stock Award on account of death or Disability, any unvested Shares with a vesting date that is during the period of six (6) months beginning on the date of termination of Service shall become vested on the date of termination of Service and any remaining unvested Shares forfeited without consideration (other than a refund to the Award Recipient of an amount equal to the lesser of (A) the cash amount, if any, actually paid by the Award Recipient to the Company for the Shares being forfeited and (B) the Fair Market Value of such Shares on the date of forfeiture).
8.3 Performance-Based Restricted Stock Awards.
(a) At the time it grants a Performance-Based Restricted Stock Award, the Committee shall establish one or more Performance Goals the attainment of which shall be a condition of the Award Recipient’s right to retain the related Shares. The Performance Goals shall be selected from among the following:
(i) earnings per share;
(ii) net income;
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(iii) EBITDA;
(iv) return on equity;
(v) return on assets;
(vi) core earnings;
(vii) stock price;
(viii) strategic business objectives, consisting of one or more objectives based on meeting specified cost targets, business expansion goals, goals relating to acquisitions or divestitures, revenue targets or business development goals;
(ix) except in the case of a Covered Employee, any other performance criteria established by the Committee; or
(x) any combination of (i) through (ix) above.
Performance Goals may be established on the basis of reported earnings or cash earnings, and consolidated results or individual business units and may, in the discretion of the Committee, include or exclude extraordinary itemsand/or the results of discontinued operations. Each Performance Goal may be expressed on an absoluteand/or relative basis, may be based on or otherwise employ comparisons based on internal targets, the past performance of the Company (or individual business units)and/or the past or current performance of other companies.
(b) At the time it grants a Performance-Based Restricted Stock Award, the Committee shall establish a Performance Measurement Period for each Performance Goal. The Performance Measurement Period shall be the period over which the Performance Goal is measured and its attainment is determined. If the Committee establishes a Performance Goal but fails to specify a Performance Measurement Period, the Performance Measurement Period shall be:
(i) if the Performance-Based Restricted Stock Award is granted during the first three months of the Company’s fiscal year, the fiscal year of the Company in which the Performance-Based Restricted Stock Award is granted; and
(ii) in all other cases, the period of four (4) consecutive fiscal quarters of the Company that begins with the fiscal quarter in which the Performance-Based Restricted Stock Award is granted.
(c) Within a reasonable period of time as shall be determined by the Committee following the end of each Performance Measurement Period, the Committee shall determine, on the basis of such evidence as it deems appropriate, whether the Performance Goals for such Performance Measurement Period have been attained and, if they have been obtained, shall certify such fact in writing.
(d) If the Performance Goals for a Performance-Based Restricted Stock Award have been determined by the Committee to have been attained and certified, the Committee shall either:
(i) if the relevant vesting date has occurred, cause the ownership of the Shares subject to such Restricted Stock Award, together with all dividends and other distributions with respect thereto that have been accumulated, to be transferred on the stock transfer records of the Company, free of any restrictive legend other than as may be required by applicable law, to the Award Recipient;
(ii) in all other cases, continue the Shares in their current status pending the occurrence of the relevant vesting date or forfeiture of the Shares.
If any one or more of the relevant Performance Goals have been determined by the Committee to not have been attained, all of the Shares subject to such Restricted Stock Award shall be forfeited without consideration (other than a refund to the Award Recipient of an amount equal to the lesser of (A) the cash amount, if any, actually paid by the Award Recipient to the Company for the Shares being forfeited and (B) the Fair Market Value of such Shares on the date of forfeiture).
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(e) If the Performance Goals for any Performance Measurement Period shall have been affected by special factors (including material changes in accounting policies or practices, material acquisitions or dispositions of property, or other unusual items) that in the Committee’s judgment should or should not be taken into account, in whole or in part, in the equitable administration of the Plan, the Committee may, for any purpose of the Plan, adjust such Performance Goals and make payments accordingly under the Plan; provided, however, that any adjustments made in accordance with or for the purposes of this section 8.3(e) shall be disregarded for purposes of calculating the Performance Goals for a Performance-Based Restricted Stock Award to a Covered Employee if and to the extent that such adjustments would have the effect of increasing the amount of a Restricted Stock Award to such Covered Employee.
8.4 Dividend Rights. Unless the Committee determines otherwise with respect to any Restricted Stock Award and specifies such determination in the relevant Award Notice, any dividends or distributions declared and paid with respect to Shares subject to the Restricted Stock Award, whether or not in cash, shall be held and accumulated for distribution at the same time and subject to the same terms and conditions as the underlying Shares.
8.5 Voting Rights. Unless the Committee determines otherwise with respect to any Restricted Stock Award and specifies such determination in the relevant Award Notice, voting rights appurtenant to the Shares subject to the Restricted Stock Award, shall be exercised by the Committee in its discretion.
8.6 Tender Offers. Each Award Recipient shall have the right to respond, or to direct the response, with respect to the issued Shares related to its Restricted Stock Award, to any tender offer, exchange offer or other offer made to the holders of Shares. Such a direction for any such Shares shall be given by completing and filing, with the inspector of elections, the trustee or such other person who shall be independent of the Company as the Committee shall designate in the direction, a written direction in the form and manner prescribed by the Committee. If no such direction is given, then the Shares shall not be tendered.
8.7 Designation of Beneficiary. An Award Recipient may designate a Beneficiary to receive any unvested Shares that become available for distribution on the date of his death. Such designation (and any change or revocation of such designation) shall be made in writing in the form and manner prescribed by the Committee. In the event that the Beneficiary designated by an Award Recipient dies prior to the Award Recipient, or in the event that no Beneficiary has been designated, any vested Shares that become available for distribution on the Award Recipient’s death shall be paid to the executor or administrator of the Award Recipient’s estate, or if no such executor or administrator is appointed within such time as the Committee, in its sole discretion, shall deem reasonable, to such one or more of the spouse and descendants and blood relatives of such deceased person as the Committee may select.
8.8 Taxes. The Company or the Committee shall have the right to require any person entitled to receive Shares pursuant to a Restricted Stock Award to pay the amount of any tax which is required to be withheld with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.
9. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER. Subject to any required action by the shareholders of the Company, in the event any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or exchange of Class A Common Stock or other securities, stock dividend or other special and nonrecurring dividend or distribution (whether in the holdersform 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")cash, securities or other property), liquidation, dissolution, or other similar corporate transaction or event, affects the Class A Common Stock shall possesssuch that an adjustment is appropriate in the aggregate 22.0%Committee’s discretion in order to prevent dilution or enlargement of the total voting powerrights of Optionees and Award Recipients under the Common Stock (as adjusted pursuant to clause
(ii)Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all 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 numberand kind of shares of Class A Common Stock outstanding onor other securities deemed to be available thereafter for grants of Options and Restricted Stock Awards under the relevant record date divided byPlan in the Class A Percentage
less (y)aggregate to all eligible individuals and individually to any one eligible individual, (ii) the total number and kind of shares of Class A Common Stock or other securities that may be delivered or deliverable in respect of outstanding onOptions or Restricted Stock Awards, and (iii) the exercise price of Options. In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Options and Restricted Stock Awards (including, without limitation, cancellation of Options or Restricted Stock Awards in exchange for the in-the-money value, if any, of the vested portion thereof, or substitution of Options or Restricted Stock Awards
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using stock of a successor or other entity) in recognition of unusual or nonrecurring events (including, without limitation, events described in the preceding sentence) affecting the Company or any Subsidiary or the financial statements of the Company or any Subsidiary, or in response to changes in applicable laws, regulations, or account principles; provided, however, that any such record dateadjustment to an Option or Performance-Based Restricted Stock Award granted to a Covered Employee with respect to the Company or its Parent or Subsidiaries shall conform to the requirements of section 162(m) of the Code and the regulations thereunder then in effect. In addition, each such adjustment with respect to an Incentive Stock Option shall comply with the rules of Section 424(a) of the Code (or any successor provision), and in no event shall any adjustment be made which would render any Incentive Stock Option granted hereunder other than an “incentive stock option” as defined in Section 422 of the Code. The Committee’s determination shall be final, binding and conclusive. Except as expressly provided herein, no issuance by (2) the totalCompany of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price 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
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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) once the Class B Percentage has been reduced in
accordance with the foregoing it shall not thereafter be increased and
(2) the Class A Percentage shall never be greater than 53.0% and Class
B Percentage shall never be less than 47.0%.
(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 their 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 subject to an Option 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. Restricted Stock Award.
In the event of a reorganization, recapitalization,
mergerthe proposed dissolution 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 adjustmentliquidation of the Class A
PercentageCompany, 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.
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Appendix B
Provisions of the Florida Business Corporation Act
607.1301 Dissenters' rights; definitions.--The following definitions apply to
ss. 607.1302 and 607.1320:
(1) "Corporation" means the issuer of the shares held by a dissenting
shareholder before the corporate action or the surviving or acquiring
corporation by merger or share exchange of that issuer.
(2) "Fair value," with respect to a dissenter's shares, means the value of the
shares as of the close of business on the day prior to the shareholders'
authorization date, excluding any appreciation or depreciation in anticipation
of the corporate action unless exclusion would be inequitable.
(3) "Shareholders' authorization date" means the date on which the shareholders'
vote authorizing the proposed action was taken, the date on which the
corporation received written consents without a meeting from the requisite
number of shareholders in order to authorize the action, or, in the case of a
merger pursuant to s. 607.1104, the day prior to the date on which a copy of the
plan of merger was mailed to each shareholder of record of the subsidiary
corporation.
607.1302 Right of shareholders to dissent.--
(1) Any shareholder of a corporation has the right to dissent from, and obtain
payment of the fair value of his or her shares in the event of any of the
following corporate actions:
(a) Consummation of a plan of merger to which the corporation is a party:
1. If the shareholder is entitled to vote on the merger, or
2. If the corporation is a subsidiary that is merged with its parent under s.
607.1104, and the shareholders would have been entitled to vote on action taken,
except for the applicability of s. 607.1104;
(b) Consummation of aproposed sale or exchange of all or substantially all of the propertyassets of the corporation, other than inCompany, or the usual and regular course of
business, if the shareholder is entitled to vote on the sale or exchange
pursuant to s. 607.1202, including a sale in dissolution but not including a
sale pursuant to court order or a sale for cash pursuant to a plan by which all
or substantially allmerger of the net proceeds of the sale will be distributed to the
shareholders within 1 year after the date of sale;
(c) As provided in s. 607.0902(11), the approval of a control-share acquisition;
(d) Consummation of a plan of share exchange to which the corporation is a party
as theCompany with or into another corporation, the sharesCommittee or the Board of which will be acquired,Directors may determine, in its discretion, that (i) if the shareholderany such transaction is entitled to vote on the plan;
(e) Any amendment of the articles of incorporation if the shareholder is
entitled to vote on the amendment and if such amendment would adversely affect
such shareholder by:
1. Altering or abolishing any preemptive rights attached to any of his or her
shares;
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2. Altering or abolishing the voting rights pertaining to any of his or her
shares, except as such rights may be affected by the voting rights of new shares
then being authorized of any existing or new class or series of shares;
3. Effecting an exchange, cancellation, or reclassification of any of his or her
shares, when such exchange, cancellation, or reclassification would alter or
abolish the shareholder's voting rights or alter his or her percentage of equityeffected in the corporation, or effecting a reduction or cancellation of accrued
dividends or other arrearages in respect to such shares;
4. Reducing the stated redemption price of any of the shareholder's redeemable
shares, altering or abolishing any provision relating to any sinking fund for
the redemption or purchase of any of his or her shares, or making any of his or
her shares subject to redemption when they are not otherwise redeemable;
5. Making noncumulative, in whole or in part, dividends of any of the
shareholder's preferred shares which had theretofore been cumulative;
6. Reducing the stated dividend preference of any of the shareholder's preferred
shares; or
7. Reducing any stated preferential amount payable on any of the shareholder's
preferred shares upon voluntary or involuntary liquidation; or
(f) Any corporate action taken, to the extent the articles of incorporation
providemanner that a voting or nonvoting shareholder is entitled to dissent and obtain
payment for his or her shares.
(2) A shareholder dissenting from any amendment specified in paragraph (1)(e)
has the right to dissent only as to those of his or her shares which are
adversely affected by the amendment.
(3) A shareholder may dissent as to less than all the shares registered in his
or her name. In that event, the shareholder's rights shall be determined as if
the shares as to which he or she has dissented and his or her other shares were
registered in the names of different shareholders.
(4) Unless the articles of incorporation otherwise provide, this section does
not apply with respect to a plan of merger or share exchange or a proposed sale
or exchange of property, to the holders of shares of any class or series which,
on the record date fixed to determine the shareholders entitled to vote at the
meeting of shareholders at which such action is to be acted upon or to consent
to any such action without a meeting, were either registered on a national
securities exchange or designated as a national market system security on an
interdealer quotation system by the National Association of Securities Dealers,
Inc., or held of record by not fewer than 2,000 shareholders.
(5)Class A shareholder entitled to dissent and obtain payment for his or her shares
under this section may not challenge the corporate action creating his or her
entitlement unless the action is unlawful or fraudulent with respect to the
shareholder or the corporation.
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607.1320 Procedure for exercise of dissenters' rights.--
(1)(a) If a proposed corporate action creating dissenters' rights under s.
607.1302 is submitted to a vote at a shareholders' meeting, the meeting notice
shall state that shareholders are or mayCommon Stock will be entitled to assert dissenters'
rightsreceive stock or other securities in exchange for such shares, then, as a condition of such transaction, lawful and adequate provision shall be accompanied by a copy of ss. 607.1301, 607.1302, and 607.1320. A
shareholder who wishes to assert dissenters' rights shall:
1. Deliver tomade whereby the corporation before the vote is taken written noticeprovisions of the shareholder's intent to demand payment for his or her shares ifPlan and the proposed
action is effectuated, and
2. Not vote his or her shares in favor of the proposed action. A proxy or vote
against the proposed action does not constitute such a notice of intent to
demand payment.
(b) If proposed corporate action creating dissenters' rights under s. 607.1302
is effectuated by written consent without a meeting, the corporation shall
deliver a copy of ss. 607.1301, 607.1302, and 607.1320 to each shareholder
simultaneously with any request for the shareholder's written consent or, if
such a request is not made, within 10 days after the date the corporation
received written consents without a meeting from the requisite number of
shareholders necessary to authorize the action.
(2) Within 10 days after the shareholders' authorization date, the corporation
shall give written notice of such authorization or consent or adoption of the
plan of merger, as the case may be, to each shareholder who filed a notice of
intent to demand payment for his or her shares pursuant to paragraph (1)(a) or,
in the case of action authorized by written consent, to each shareholder,
excepting any who voted for, or consented in writing to, the proposed action.
(3) Within 20 days after the giving of notice to him or her, any shareholder who
elects to dissent shall file with the corporation a notice of such election,
stating the shareholder's name and address, the number, classes, and series of
shares as to which he or she dissents, and a demand for payment of the fair
value of his or her shares. Any shareholder failing to file such election to
dissent within the period set forth shall be bound by the terms of the proposed
corporate action. Any shareholder filing an election to dissent shall deposit
his or her certificates for certificated shares with the corporation
simultaneously with the filing of the election to dissent. The corporation may
restrict the transfer of uncertificated shares from the date the shareholder's
election to dissent is filed with the corporation.
(4) Upon filing a notice of election to dissent, the shareholderOptions granted hereunder shall thereafter be entitled only to paymentapplicable, as provided in this section and shall not
be entitled to vote or to exercise any other rights of a shareholder. A notice
of electionnearly equivalent as may be withdrawnpracticable, in writing byrelation to any shares of stock or securities thereafter deliverable upon the shareholder at any time before an
offer is made by the corporation, as provided in subsection (5), to pay for his
or her shares. After such offer, no such notice of election may be withdrawn
unless the corporation consents thereto. However, the right of such shareholder
to be paid the fair value of his or her shares shall cease, and the shareholder
shall be reinstated to have all his or her rights as a shareholder as of the
filing of his or her notice of election, including any intervening preemptive
rights and the right to paymentexercise of any intervening dividendOption or other
distribution or, if any such rights have expired or any such dividend or
distribution other than in cash has been completed, in lieu thereof, at(ii) the election of the corporation, the fair value thereof in cash as determined by the
board as of the time of such expiration or completion, but without prejudice
otherwiseOption will terminate immediately prior to any corporate proceedings that may have been taken in the interim,
if:
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(a) Such demand is withdrawn as provided in this section;
(b) The proposed corporate action is abandoned or rescinded or the shareholders
revoke the authority to effect such action;
(c) No demand or petition for the determination of fair value by a court has
been made or filed within the time provided in this section; or
(d) A court of competent jurisdiction determines that such shareholder is not
entitled to the relief provided by this section.
(5) Within 10 days after the expiration of the period in which shareholders may
file their notices of election to dissent, or within 10 days after such
corporate action is effected, whichever is later (but in no case later than 90
days from the shareholders' authorization date), the corporation shall make a
written offer to each dissenting shareholder who has made demand as provided in
this section to pay an amount the corporation estimates to be the fair value for
such shares. If the corporate action has not been consummated before the
expiration of the 90-day period after the shareholders' authorization date, the
offer may be made conditional upon the consummation of such action. Such notice
and offerproposed transaction. The Committee or the Board of Directors may, in the exercise of its sole discretion in such instances, declare that any Option shall be accompanied by:
(a) A balance sheet of the corporation, the shares of which the dissenting
shareholder holds,terminate as of a date fixed by the latest available date and not more than 12 months
prior to the making of such offer; and
(b) A profit and loss statement of such corporation for the 12-month period
ended on the date of such balance sheet or, if the corporation was not in
existence throughout such 12-month period, for the portion thereof during which
it was in existence.
(6) If within 30 days after the making of such offer any shareholder accepts the
same, payment for his or her shares shall be made within 90 days after the
making of such offerCommittee or the consummationBoard of Directors and give each Optionee or Transferee, if applicable, the proposed action, whichever is
later. Upon payment of the agreed value, the dissenting shareholder shall ceaseright to have any interest in such shares.
(7) If the corporation fails to make such offer within the period specified
therefor in subsection (5) or if it makes the offer and any dissenting
shareholder or shareholders fail to accept the same within the period of 30 days
thereafter, then the corporation, within 30 days after receipt of written demand
from any dissenting shareholder given within 60 days after the date on which
such corporate action was effected, shall, or at its election at any time within
such period of 60 days may, file an action in any court of competent
jurisdiction in the county in this state where the registered office of the
corporation is located requesting that the fair value of such shares be
determined. The court shall also determine whether each dissenting shareholder,exercise his Option as to whom the corporation requests the court to make such determination, is
entitled to receive payment for his or her shares. If the corporation fails to
institute the proceeding as herein provided, any dissenting shareholder may do
so in the name of the corporation. All dissenting shareholders (whether or not
residents of this state), other than shareholders who have agreed with the
corporation as to the value of their shares, shall be made parties to the
proceeding as an action against their shares. The corporation shall serve a copy
of the initial pleading in such proceeding
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upon each dissenting shareholder who is a resident of this state in the manner
provided by law for the service of a summons and complaint and upon each
nonresident dissenting shareholder either by registered or certified mail and
publication or in such other manner as is permitted by law. The jurisdiction of
the court is plenary and exclusive. All shareholders who are proper parties to
the proceeding are entitled to judgment against the corporation for the amount
of the fair value of their shares. The court may, if it so elects, appoint one
or more persons as appraisers to receive evidence and recommend a decision on
the question of fair value. The appraisers shall have such power and authority
as is specified in the order of their appointment or an amendment thereof. The
corporation shall pay each dissenting shareholder the amount found to be due him
or her within 10 days after final determination of the proceedings. Upon payment
of the judgment, the dissenting shareholder shall cease to have any interest in
such shares.
(8) The judgment may, at the discretion of the court, include a fair rate of
interest, to be determined by the court.
(9) The costs and expenses of any such proceeding shall be determined by the
court and shall be assessed against the corporation, but all or any part of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable; provided, however, that the Committee may, at any time prior to the consummation of such costsmerger, consolidation or other business reorganization, direct that all, but not less than all, outstanding Options be cancelled as of the effective date of such merger, consolidation or other business reorganization in exchange for a cash payment per optioned Share equal to the excess (if any) of the value exchanged for an outstanding Share in such merger, consolidation or other business reorganization over the exercise price of the Option being cancelled.
In the event of any merger, consolidation, or other business reorganization in which the Company is not the surviving entity, any Restricted Stock Award with respect to which Shares had been awarded to an Award Recipient shall be adjusted by allocating to the Award Recipient the amount of money, stock, securities or other property to be received by the other shareholders of record, and expenses maysuch money, stock, securities or other property shall be apportionedsubject to the same terms and assessed asconditions of the court deems equitable
againstRestricted Stock Award that applied to the Shares for which it has been exchanged.
Without limiting the generality of the foregoing, the existence of outstanding Options or Restricted Stock Awards granted under the Plan shall not affect in any manner the right or power of the Company to make, authorize or consummate (i) any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; (ii) any merger or consolidation of the dissenting shareholders who are partiesCompany; (iii) any issuance by the Company of debt securities or preferred or preference stock that would rank above the Shares subject to outstanding Options or Restricted Stock Awards; (iv) the dissolution or liquidation of the Company; (v) any sale, transfer or assignment of all or any part of the assets or business of the Company; or (vi) any other corporate act or proceeding, whether of a similar character or otherwise.
10. TIME FOR GRANTING OPTIONS AND RESTRICTED STOCK AWARDS. The date of grant of an Option or Restricted Stock Award shall, for all purposes, be the date on which the Committee makes the determination granting such Option or Restricted Stock Award or such later date as the Committee may specify. Notice of the determination shall be given to each Optionee or Award Recipient within a reasonable time after the date of such grant.
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11. AMENDMENT AND TERMINATION OF THE PLAN.
11.1 Committee Action; Shareholders’ Approval. Subject to applicable laws and regulations, the Committee or the Board of Directors may amend or terminate the Plan from time to time in such respects as the Committee or the Board of Directors may deem advisable, without the approval of the Company’s shareholders.
11.2 Effect of Amendment or Termination. No amendment or termination or modification of the Plan shall in any manner affect any Option or Restricted Stock Award theretofore granted without the consent of the Optionee or Award Recipient, except that the Committee or the Board of Directors may amend or modify the Plan in a manner that does affect Options or Restricted Stock Awards theretofore granted upon a finding by the Committee or the Board of Directors that such amendment or modification is in the best interest of Shareholders, Optionees or Award Recipients.
12. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued pursuant to the proceeding,exercise of an Option or delivered with respect to whoma Restricted Stock Award unless the corporation has made an offer to pay for the shares, if
the court finds that the actionexercise of such shareholders in failingOption and the issuance and delivery of such Shares pursuant thereto or the grant of a Restricted Stock Award and the delivery of Shares with respect thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to accept such
offer was arbitrary, vexatious, or not in good faith. Such expenses shall
include reasonable compensation for, and reasonable expenses of, the appraisers,
but shall exclude the fees and expensesapproval of counsel for the Company with respect to such compliance.
As a condition to the exercise of an Option, grant of a Restricted Stock Award or delivery of Shares with respect to a Restricted Stock Award, the Company may require the Person exercising such Option or acquiring such Shares or Restricted Stock Award to represent and experts employedwarrant at the time of any such exercise, grant or acquisition that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any party. If the fair value of the aforementioned relevant provisions of law. The Company shall not be required to deliver any Shares under the Plan prior to (i) the admission of such Shares to listing on any stock exchange on which Shares may then be listed, or (ii) the completion of such registration or other qualification under any state or federal law, rule or regulation as the Committee shall determine to be necessary or advisable.
13. RESERVATION OF SHARES. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. Inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such shares as determined, materially exceedsto which such requisite authority shall not have been obtained.
14. STOCK OPTION AGREEMENT; AWARD NOTICE. Options shall be evidenced by written option agreements and Restricted Stock Awards shall be evidenced by Award Notices, each in such form as the Board of Directors or the Committee shall approve.
15. Intentionally omitted.
16. OTHER PROVISIONS. The Stock Option Agreements or Award Notices authorized under the Plan may contain such other provisions, including, without limitation, restrictions upon the exercise of the Option or vesting of the Restricted Stock Award, as the Board of Directors or the Committee shall deem advisable. Any Incentive Stock Option Agreement shall contain such limitations and restrictions upon the exercise of the Incentive Stock Option as shall be necessary in order that such Option will be an incentive stock option as defined in Section 422 of the Code.
17. INDEMNIFICATION OF COMMITTEE MEMBERS. In addition to such other rights of indemnification they may have as directors, the members of the Committee shall be indemnified by the Company against the reasonable expenses, including attorneys’ fees actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal thereon, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option or Restricted Stock Award granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit
B-11
or proceeding that such Committee member is liable for gross negligence or misconduct in the performance of his duties; provided that within sixty (60) days after institution of any such action, suit or proceeding a Committee member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same.
18. NO OBLIGATION TO EXERCISE OPTION. The granting of an Option shall impose no obligation upon the Optionee to exercise such Option.
19. WITHHOLDINGS; TAX MATTERS.
19.1 The Company shall have the right to deduct from all amounts paid by the Company in cash with respect to an Option under the Plan any taxes required by law to be withheld with respect to such Option. Where any Person is entitled to receive Shares pursuant to the exercise of an Option, the Company shall have the right to require such Person to pay to the Company the amount of any tax which the corporation offeredCompany is required to paywithhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the minimum amount required to be withheld. To the extent determined by the Committee and specified in the Option Agreement, an Option holder shall have the right to direct the Company to satisfy the minimum required federal, state and local tax withholding by reducing the number of Shares subject to the Option (without issuance of such Shares to the Option holder) by a number equal to the quotient of (a) the total minimum amount of required tax withholding divided by (b) the excess of the Fair Market Value of a Share on the Option exercise date over the Option exercise price per Share.
19.2 If and to the extent permitted by the Committee and specified in an Award Notice for a Restricted Stock Award other than a Performance-Based Restricted Stock Award, an Award Recipient may be permitted or required to make an election under section 83(b) of the Code to include the compensation related thereto in income for federal income tax purposes at the time of issuance of the Shares to such Award Recipient instead of at a subsequent vesting date. In such event, the Shares issued prior to their vesting date shall be issued in certificated form only, and the certificates therefor shall bear the following legend:
The Class A Common Stock evidenced hereby is subject to the terms of a Restricted Stock Award agreement between BFC Financial Corporation and [Name of Recipient] dated [Date] made pursuant to the terms of the BFC Financial Corporation 2005 Stock Incentive Plan, copies of which are on file at the executive offices of BFC Financial Corporation, and may not be sold, encumbered, hypothecated or if no offer was
made,otherwise transferred except in accordance with the courtterms of such Plan and Agreement.
or such other restrictive legend as the Committee, in its discretion, may award to any shareholder who is a partyspecify. In the event of the Award Recipient’s termination of Service prior to the proceedingrelevant vesting date or forfeiture of the Shares for any other reason, the Award Recipient shall be required to return all forfeited Shares to the Company without consideration therefor (other than a refund to the Award Recipient of an amount equal to the lesser of (A) the cash amount, if any, actually paid by the Award Recipient to the Company for the Shares being forfeited and (B) the Fair Market Value of such sum asShares on the court determinesdate of forfeiture).
20. OTHER COMPENSATION PLANS. The adoption of the Plan shall not affect any other stock option or incentive or other compensation plans in effect for the Company or any Subsidiary, nor shall the Plan preclude the Company from establishing any other forms of incentive or other compensation for employees and directors of the Company or any Subsidiary.
21. SINGULAR, PLURAL; GENDER. Whenever used herein, nouns in the singular shall include the plural, and the masculine pronoun shall include the feminine gender.
22. HEADINGS, ETC. NO PART OF PLAN. Headings of Articles and Sections hereof are inserted for convenience and reference; they constitute no part of the Plan.
23. SEVERABILITY. If any provision of the Plan is held to be reasonable compensation to
any attorneyinvalid or expert employed by the shareholder in the proceeding.
(10) Shares acquiredunenforceable by a corporation pursuant to paymentcourt of competent jurisdiction, then such invalidity or unenforceability shall not affect the validity and enforceability of the agreed value
thereof or pursuant to paymentother provisions of the judgment entered therefor,Plan and the provision held to be invalid or unenforceable shall be enforced as provided in
this section, may be heldnearly as possible according to its original terms and disposed of byintent to eliminate such corporation as authorized but
unissued shares of the corporation, except that, in the case of a merger, they
may be held and disposed of as the plan of merger otherwise provides. The shares
of the surviving corporation into which the shares of such dissenting
shareholders would have been converted had they assented to the merger shall
have the status of authorized but unissued shares of the surviving corporation.
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invalidity or unenforceability.
B-12
Form of Proxy
Class A Common Stock
REVOCABLE PROXY
BFC FINANCIAL CORPORATION
2100 WEST CYPRESS CREEK ROAD
FT. LAUDERDALE, FL 33309
2100 WEST CYPRESS CREEK ROAD
FT. LAUDERDALE, FL 33309
ANNUAL MEETING OF STOCKHOLDERS
Proxy Solicited On Behalf of the Board of Directors
SHAREHOLDERS OF
BFC FINANCIAL CORPORATION
MAY 19, 2009
BFC FINANCIAL CORPORATION
MAY 19, 2009
The undersigned hereby appoints GlenJohn K. Grelle and Maria R. GilbertScheker, and Lourdes G. Lastres, or
eithereach of them acting alone, with the undersigned's proxies, with full power of substitution, to appoint his or her substitute, proxy to represent the undersigned and vote as designated on the reverse all of the shares of Class A Common Stock of BFC FINANCIAL CORPORATION (the
"Company") whichFinancial Corporation held of record by the undersigned would be entitled to vote if personally presenton April 2, 2009 at the Annual Meeting of StockholdersShareholders to be held at the Westin Hotel, Fort
Lauderdale, 400 Corporate Drive (I-95 and Cypress Creek Road), Fort Lauderdale,
Florida 33334, on May 22, 2002 at 11:00 a.m. local time,19, 2009 and at any adjournment or postponement thereof, as hereinafter specified upon the proposal listed on
the reverse sidethereof.
Please mark, date, sign and as more particularly describedmail your proxy card in the Company's Proxy
Statement, receipt of which is hereby acknowledged,envelope provided as soon as possible.
Please detach along the perforated line and in their discretion,
upon such other business as may properly come before such Annual Meeting or
adjournments or postponements thereof.
This Proxy will be voted in accordance with the instructions set forth herein,
ormail in the event no instructions are set forth, this Proxy will be voted FOR the
approval of the proposal set forth on the back of this card and described in the
accompanying Notice of Annual Meeting and Proxy Statement. This Proxy hereby
revokes all prior proxies given with respect to the shares of the undersigned.
(Continued,envelope provided.
| Comments: | ||||||
(Continued and to be signed and dated on the other side.)
-33-
1. Approval of an Amendment toreverse side)
BFC FINANCIAL CORPORATION 2100 W. CYPRESS CREEK ROAD FT. LAUDERDALE, FL 33309 | MAIL – Date, sign and mail your proxy card in the envelope provided as soon as possible. | |
| -OR- | ||
| TELEPHONE– Call toll-free 1-800-PROXIES (1-800-776-9437) in the United States or 1-718-921-8500 from foreign countries and follow the instructions. Have your proxy card available when you call. | ||
| -OR- | ||
| INTERNET– Access “www. voteproxy.com” and follow the on-screen instructions. Have your proxy card available when you access the web page. | ||
| -OR- | ||
| IN PERSON– You may vote your shares in person by attending the Annual Meeting. |
You may enter your voting instructions at 1-800-PROXIES or www.voteproxy.com up until 11:59 PM Eastern Time the Company's Articles of Incorporation to
joint voting rights today before the Company's Class A Common Stock and to fix
the relative voting power of the Company's Class A Common Stock and
Class B Common Stock.
THE BOARD OF DIRECTORS RECOMMENDS Acut-off or meeting date.
PLEASE MARK YOUR VOTE FOR THE APPROVAL OF THE
AMENDMENT.
FOR AGAINST ABSTAIN
[_] [_] [_]
-----------------------------------------------------------------------
Please mark, sign, date and return this proxy card promptly,
using the enclosed envelope. No Postage is required for
mailing it in the United States.
Dated: ____________________________________________, 2002
_________________________________________________________
(Signature of Stockholder)
_________________________________________________________
(Signature of Stockholder)
IMPORTANT:IN BLUE OR BLACK INK AS SHOWN HEREý
1. The election of one director for a term of three years. NOMINEE: 3-YEAR TERM: D. Keith Cobb [ ] FOR NOMINEE [ ] WITHHOLD AUTHORITY FOR NOMINEE 2. The approval of an amendment to the Company’s Amended and Restated Articles of Incorporation increasing the number of authorized shares of the Company’s Class A Common Stock from 70,000,000 shares to 100,000,000 shares. [ ] FOR [ ] AGAINST [ ] ABSTAIN To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] | 3. The approval of an amendment to the Company’s 2005 Stock Incentive Plan. [ ] FOR [ ] AGAINST [ ] ABSTAIN 4. In his or her discretion, the proxy is authorized to vote upon such other matters as may properly come before the meeting. THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED “FOR” THE ELECTION OF THE DIRECTOR NAMED IN PROPOSAL 1 AND “FOR” PROPOSALS 2 AND 3. PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY IN THE ENCLOSED ENVELOPE. Please mark box if you plan to attend this meeting. [ ] | ||||
| Signature of Shareholder: | Date: | Signature of Shareholder: | Date: | |||||||||||
NOTE: Please sign exactly as name(s)your name or names appear(s) at left.on this proxy. When shares are held jointly, each holder should sign. When signing as attorney, executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign the full corporate name by President or otherduly authorized officer.officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.
-34-
Appendix -
Form of Proxy
Class B Common Stock
REVOCABLE PROXY
Class B Common Stock
BFC FINANCIAL CORPORATION
2100 WEST CYPRESS CREEK ROAD
FT. LAUDERDALE, FL 33309
2100 WEST CYPRESS CREEK ROAD
FT. LAUDERDALE, FL 33309
ANNUAL MEETING OF STOCKHOLDERS
Proxy Solicited On Behalf of the Board of Directors
SHAREHOLDERS OF
BFC FINANCIAL CORPORATION
MAY 19, 2009
BFC FINANCIAL CORPORATION
MAY 19, 2009
The undersigned hereby appoints GlenJohn K. Grelle and Maria R. GilbertScheker, and Lourdes G. Lastres, or
eithereach of them acting alone, with the undersigned's proxies, with full power of substitution, to appoint his or her substitute, proxy to represent the undersigned and vote as designated on the reverse all of the shares of Class B Common Stock of BFC FINANCIAL CORPORATION (the
"Company") whichFinancial Corporation held of record by the undersigned would be entitled to vote if personally presenton April 2, 2009 at the Annual Meeting of StockholdersShareholders to be held at the Westin Hotel, Fort
Lauderdale, 400 Corporate Drive (I-95 and Cypress Creek Road), Fort Lauderdale,
Florida 33334, on May 22, 2002 at 11:00 a.m. local time,19, 2009 and at any adjournment or postponement thereof, as hereinafter specified upon the proposals listed on
the reverse sidethereof.
Please mark, date, sign and as more particularly describedmail your proxy card in the Company's Proxy
Statement, receipt of which is hereby acknowledged,envelope provided as soon as possible.
Please detach along the perforated line and in their discretion,
upon such other business as may properly come before such Annual Meeting or
adjournments or postponements thereof.
This Proxy will be voted in accordance with the instructions set forth herein,
ormail in the event no instructions are set forth, this Proxy will be voted FOR the
proposal set forth on the back of this Proxy and FOR the nominees set forth on
the back of this card and described in the accompanying Notice of Annual Meeting
and Proxy Statement. This Proxy hereby revokes all prior proxies given with
respect to the shares of the undersigned.
(Continued,envelope provided.
| Comments: | ||||||
(Continued and to be signed and dated on the other side.)
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1. Election of two directors - one to serve a one-year term to expire in
2003reverse side)
BFC FINANCIAL CORPORATION 2100 W. CYPRESS CREEK ROAD FT. LAUDERDALE, FL 33309 | MAIL – Date, sign and mail your proxy card in the envelope provided as soon as possible. | |
| -OR- | ||
| TELEPHONE– Call toll-free1-800-PROXIES(1-800-776-9437) in the United States or 1-718-921-8500 from foreign countries and follow the instructions. Have your proxy card available when you call. | ||
| -OR- | ||
| INTERNET– Access “www. voteproxy.com” and follow the on-screen instructions. Have your proxy card available when you access the web page. | ||
| -OR- | ||
| IN PERSON– You may vote your shares in person by attending the Annual Meeting. |
You may enter your voting instructions at 1-800-PROXIES or www.voteproxy.com up until 11:59 PM Eastern Time the other to serve a three year term to expire in 2005.
THE BOARD OF DIRECTORS RECOMMENDS Aday before the cut-off or meeting date.
PLEASE MARK YOUR VOTE FOR THE NOMINEES NAMED BELOW:
Nominees: Earl Pertnoy (term to expire in 2003) and John E. Abdo (term
to expire in 2005),
FOR the nominees WITHHOLD AUTHORITY
listed above to vote for the nominee(s)
listed below.
[_] [_]
----------------------------------------------------------------------
2. Approval of an Amendment to the Company's Articles of Incorporation to
joint voting rights to the Company's Class A Common Stock and to fix
the relative voting power of the Company's Class A Common Stock and
Class B Common Stock.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE APPROVAL OF THE
AMENDMENT.
FOR AGAINST ABSTAIN
[_] [_] [_]
-----------------------------------------------------------------------
Please mark, sign, date and return this proxy card promptly,
using the enclosed envelope. No Postage is required for
mailing it in the United States.
Dated: ____________________________________________, 2002
__________________________________________________________
(Signature of Stockholder)
__________________________________________________________
(Signature of Stockholder)
IMPORTANT:IN BLUE OR BLACK INK AS SHOWN HEREý
1. The election of one director for a term of three years. NOMINEE: 3-YEAR TERM: D. Keith Cobb [ ] FOR NOMINEE [ ] WITHHOLD AUTHORITY FOR NOMINEE 2. The approval of an amendment to the Company’s Amended and Restated Articles of Incorporation increasing the number of authorized shares of the Company’s Class A Common Stock from 70,000,000 shares to 100,000,000 shares. [ ] FOR [ ] AGAINST [ ] ABSTAIN To change the address on your account, please check the box at right and indicate your new address in the address space above. Please note that changes to the registered name(s) on the account may not be submitted via this method. [ ] | 3. The approval of an amendment to the Company’s 2005 Stock Incentive Plan. [ ] FOR [ ] AGAINST [ ] ABSTAIN 4. In his or her discretion, the proxy is authorized to vote upon such other matters as may properly come before the meeting. THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED “FOR”THE ELECTION OF THE DIRECTOR NAMED IN PROPOSAL 1 AND “FOR”PROPOSALS 2 AND 3. PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY IN THE ENCLOSED ENVELOPE. Please mark box if you plan to attend this meeting. [ ] | ||||
| Signature of Shareholder: | Date: | Signature of Shareholder: | Date: | |||||||||||
NOTE: Please sign exactly as name(s)your name or names appear(s) at left.on this proxy. When shares are held jointly, each holder should sign. When signing as attorney, executor, administrator, attorney, trustee or guardian, please give full title as such. If the signer is a corporation, please sign the full corporate name by President or otherduly authorized officer.officer, giving full title as such. If signer is a partnership, please sign in partnership name by authorized person.
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