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Exhibit 10.7  

 
 

BANCORP HAWAII, INC.
  DIRECTORS' DEFERRED COMPENSATION PLAN
  (Restatement Effective as of January 1, 1996)    

        Article 1.    Purpose.    This Bancorp Hawaii, Inc. Directors' Deferred Compensation Plan ("Plan") is
intended to advance the interests of Bancorp Hawaii, Inc. ("Company") by providing deferred compensation benefits to the non-employee members of the Board of Directors of the
Company and the Bank of Hawaii ("Bank") ("Directors") and thereby strengthening the ability of the Company to attract and retain valued Directors upon whose judgment, initiative, and efforts the
successful conduct and development of the Company depends. 

        Article 2.    Effective Date.    This Plan shall become effective as of January 1, 1996 ("Effective
Date"), upon adoption by the Board of Directors of the Company, and shall operate on the basis of the calendar year ("Plan Year"). This Plan constitutes a restatement in its entirety and continuation
of the prior version of the Plan. 

        Article 3.    Eligibility.    Any Director entitled to compensation by the Company or the Bank for service as a
Director ("Eligible Director"), other than a Director who is also a salaried officer or employee of the Company or any of its subsidiaries, may elect to become a participant ("Participant") under the
Plan by written notice to the Company. 

        Article 4.    Election of Deferral.    Each Participant may elect to defer receipt of either all of his annual
retainer fees and meeting fees, or all of his annual retainer fees, which are earned for the Plan Year commencing after the date of the election ("Deferral Election"). The Deferral Election for a Plan
Year shall be irrevocable as to the designated fees earned for the Plan Year. 

        By
written notice to the Company on or before any December 31, any Participant may elect to terminate future deferrals with respect to fees earned for the succeeding Plan Year
commencing after the December 31. In such event, the amount accumulated pursuant to the Plan prior to the effective date of his termination election shall continue to be subject to the
provisions of the Plan. An Eligible
Director who elects to terminate his participation shall not be permitted to make a new Deferral Election under the Plan until one year from the effective date of the termination election. 

        Article 5.    Deferred Compensation Account.    A separate account shall be established and maintained on
behalf of each Participant under the Plan ("Account"), which Account shall reflect the balance of the Deferral Election amounts credited to the Participant as provided in Article 4 above. The
deferred fees of each Participant shall be credited to the Participant's Account as soon as reasonably practicable following the date on which such fees would be otherwise payable to the Participant. 

        The
amounts credited to the Participant's Account, including that portion of the Account comprising the preexisting Account balance under the prior version of the Plan, shall be invested
and reinvested in one or more of the Pacific Capital Funds as may be directed by the Participant. Each Account shall be appropriately increased or decreased, as the case may be, to reflect the
appreciation or depreciation in value of the Account, the net income or loss attributable to funds credited to the Account, and distributions and expenses that may be charged to the Account. The
Participant agrees on behalf of himself and any designated beneficiary to assume all risks and responsibilities for his investment directions under his Account, and the Company shall not be liable for
any investment losses that may be incurred under the Account. 

        Article 6.    Vesting.    Except as provided in Article 11, a Participant shall have a 100% vested and
nonforfeitable interest in the balance of his Account. 

        Article 7.    Distribution Due to Termination.    The amount credited to the Account of a Participant shall be
paid to the Participant in a single lump sum or in equal annual installments over a period of years, not exceeding ten years, as the Participant may elect. Such distribution shall commence on the 

first
day of the first calendar month after the Participant ceases to be a Director of the Company. Each Participant shall file with the Company at the time of his Deferral Election an irrevocable
election regarding the method of distribution of that portion of his Account derived from the Deferral Election. 

        Article 8.    Distribution Due to Death.    Upon the death of an active Participant, or terminated Participant
prior to expiration of the period during which his Account is payable, the balance of his Account shall be paid in a single lump sum to his designated beneficiary. The Account shall be paid in full on
the second day of the Plan Year following the year of death. The Participant's designated beneficiary shall be designated or changed by the Participant (without the consent of any prior beneficiary)
through written notice delivered to the Company. If no such beneficiary is designated, or if no designated beneficiary survives the Participant, the amount payable due to the Participant's death shall
be payable to the Participant's estate. 

        Article 9.    Incapacity.    If the Compensation Committee of the Board of Directors finds that any person to
whom payment is payable under this Plan is unable to care for his affairs because of illness or accident, or is a minor, any payment due (unless a prior claim for such payment has been made by a duly
appointed guardian, committee, or other legal representative) may be paid to the spouse, a child, a parent, or a brother or sister, or to any person deemed by the Committee to have incurred expense
for such person otherwise entitled to payment. 

        Article 10.    Funding.    The amounts payable under this Plan shall be paid in cash or in kind from the
general funds of the Company, as the Compensation Committee of the Board of Directors may determine, and a Participant shall have no right, title, or interest whatsoever in or to investments, if any,
which the Company may make to aid it in meeting its obligations under this Plan. Title to and beneficial ownership of any such investments shall at all times remain in the Company. Nothing contained
in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and the Participant and any
other person. To the extent that any person acquires a right to receive a payment from the Company under this Plan, such right shall be no greater than the right of any unsecured creditor. 

        Article 11.    Legal Status.    This Plan is intended to constitute a nonqualified deferred compensation plan
not subject to the qualification requirements of Section 401(a) of the Internal Revenue Code or the Employee Retirement Income Security Act of 1974 ("ERISA"). Specifically, prior to the actual
payment of the amounts credited to an Account, there is no transfer of any assets to a Participant or for the benefit of the Participant under this Plan, and the Plan is intended to confer no current
benefit that would be immediately taxable to the Participant under the constructive receipt rule or economic benefit doctrine under the tax laws. Further, this Plan is intended to benefit
non-employee Directors exclusively, and not employees of the Company, and is thereby not subject to the requirements of ERISA. 

        Article 12.    Continued Service.    Nothing contained in this Plan shall be construed as conferring upon a
Participant the right to continue in the service of the Company as a Director or in any other capacity. Further, nothing contained in this Plan shall be deemed to create an obligation on the part of
the Board to nominate any Director for reelection by the Company stockholders. 

        Article 13.    Nonassignment.    The interests of a Participant hereunder may not be sold, transferred, signed,
pledged, or hypothecated. No Participant may borrow against his Account. 

        Article 14.    Administration.    The Compensation Committee of the Board of Directors shall have full power
and authority to interpret, construe, and administer this Plan, in its sole and absolute discretion, and the Committee's interpretation and construction of this Plan, including any valuation of an
Account, or the amount or recipient of any payment, shall be binding and conclusive on all persons. The Committee may at its sole discretion determine the costs of implementing and administering the
Plan, and it may charge all or a portion of such costs to Participants either by charging their respective Accounts or by direct charge. 

        Article 15.    Amendment and Termination.    The Plan may, at any time or from time to time, be amended,
modified, or terminated at the sole and complete discretion of the Board of Directors. 

However,
no amendment, modification, or termination of the Plan shall adversely affect such Participant's rights with respect to amounts then accrued in his Account. 

        Article 16.    Enforceability and Controlling Law.    If any provision of this Plan is held by a court of
competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The provisions of this Plan shall be construed, administered, and enforced
according to the laws of the State of Hawaii. 

        Article 17.    Gender.    Wherever any words are used under the Plan in the masculine, feminine, or neuter
gender, they shall be construed as though they were also used in another gender in all cases where they would so apply. 

        IN
WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized officers on this 13th day of December, 1995. 

	 	 	BANCORP HAWAII, INC.
	

 	
 	

By	
 	

/s/  LAWRENCE M. JOHNSON      

	 	 	 	 	Its  LAWRENCE M. JOHNSON

      Chairman of the Board &

      Chief Executive Officer
	

 	
 	

By	
 	

/s/  RICHARD J. DAHL      

	 	 	 	 	Its  Richard J. Dahl,

      President
	 	 	 	 	"Company"

AMENDMENT NO. 96-1 TO

THE BANCORP HAWAII, INC.

DIRECTORS' DEFERRED COMPENSATION PLAN  

        In accordance with the provisions of its Article 15, the Bancorp Hawaii, Inc. Directors' Deferred Compensation Plan ("Plan") is amended, effective
as of September 1, 1996, as follows: 

        1.     The
second paragraph of Article 5 of the Plan shall be revised to read as follows: 

        For
purposes of determining the value of the balance of each Participant's Account, the amount allocated to the Participant's Account shall be treated as if such amount were invested and
reinvested in one or more of the Pacific Capital Funds or shares of Company common stock ("Company Stock") as may be directed by the Participant. Each Account shall be appropriately increased or
decreased, as the case may be, to reflect the appreciation or depreciation in the value attributable to the Funds or Company Stock, the net income or loss attributable to the Funds or Company Stock,
and distributions and expenses that may be charged to the Account. The Participant agrees on behalf of himself and any designated beneficiary to assume all risks and responsibilities for his
investment directions under his Account, and the Company shall not be liable for any deemed investment losses that may be incurred under the Account. However, notwithstanding the preceding portion of
this paragraph, in order to meet the requirements for exemption from the short-swing profit recovery provisions of Section 16 of the Securities Exchange Act of 1934 ("Exchange Act"), the
Participant's investment direction in Company Stock shall be subject to the limitations described below in Article 5A. 

        2.     New
Article 5A of the Plan shall be inserted at the end of Article 5 as follows: 

        Article 5A.    Rule 16b-3 Requirements.    With respect to Directors who are subject to the
provisions of Section 16 of the Exchange Act, the provisions of the Plan and all transactions hereunder are intended and shall be construed and applied so as to comply with all applicable
requirements and conditions for exemption under Rule 16b-3 or any successor Rule under the Exchange Act. 

        In
this regard, a Participant's investment election directing the investment, disinvestment, or reinvestment of his Account in Company Stock as allowed under Article 5 shall meet
the requirements of a "discretionary transaction" under Code of Federal Regulation Section 240.16b-3(f). Specifically, a Participant shall be allowed to make such investment
election with respect to the acquisition or disposition of Company Stock only if such election is made on or after the date that is six months following the date of the most recent investment election
for an "opposite way" transaction under any employee benefit plan sponsored by the Company. For this purpose, an "opposite way" transaction means, a previous acquisition if the current transaction is
a disposition, and vice versa. 

        Further,
with respect to a Participant's Account, an acquisition or disposition of Company Stock resulting from an election to receive, or defer the receipt of, Company Stock or cash in
connection with the death, disability, retirement, or termination of service of the Participant shall be made only if such acquisition or disposition is approved in advance by the Committee, or other
qualifying approval is obtained, pursuant to Rules 16b-3(d) and (e). 

        3.     The
following provision shall be inserted at the end of Article 7: 

        Subject
to the limitations of Article 5A, the form of the distribution under this Article 7 and Article 8 below shall be in cash or in kind as the Participant (or
beneficiary) may elect at the time of distribution. 

        To
record the adoption of this amendment to the Plan, Bancorp Hawaii, Inc. has executed this document this 26th day of July, 1996. 

	 	 	BANCORP HAWAII, INC.
	

 	
 	

By	
 	

/s/  LAWRENCE M. JOHNSON      

	 	 	 	 	Its  Chairman and Chief

      Executive Officer
	

 	
 	

By	
 	

/s/  RICHARD J. DAHL      

	 	 	 	 	Its  President and Chief

      Operating Officer

TRUST AGREEMENT

FOR THE BANCORP HAWAII, INC.

DIRECTORS' DEFERRED COMPENSATION PLAN  

(Effective
as of September 1, 1996) 

TRUST AGREEMENT

FOR THE BANCORP HAWAII, INC.

DIRECTORS' DEFERRED COMPENSATION PLAN  

TABLE OF CONTENTS  

	 
	 	Page

	Section 1.    The Trust Assets	 	2
	Section 2.    Investment	 	2
	Section 3.    Administration	 	3
	Section 4.    Trustee's Powers	 	3
	Section 5.    Nominees	 	4
	Section 6.    Records	 	4
	Section 7.    Reports	 	4
	Section 8.    Distributions	 	4
	Section 9.    Signatures	 	4
	Section 10.    Expenses	 	5
	Section 11.    Liability	 	5
	Section 12.    Amendment and Termination	 	5
	Section 13.    Nonassignment and General Creditors	 	5
	Section 14.    Resignation or Removal of Trustee	 	6
	Section 15.    Change-In-Control	 	6
	Section 16.    Acceptance and Jurisdiction	 	7
	Section 17.    Illegality	 	7

TRUST AGREEMENT

FOR THE BANCORP HAWAII, INC.

DIRECTORS' DEFERRED COMPENSATION PLAN  

        THIS AGREEMENT, between Bancorp Hawaii, Inc., a Hawaii corporation ("Company"), and Hawaiian Trust Company, Ltd., a Hawaii trust company
("Trustee"), shall be effective as of September 1, 1996. 

W
I T N E S S E T H: 

        WHEREAS,
the Company maintains the Bancorp Hawaii, Inc. Directors' Deferred Compensation Plan ("Plan"), restatement effective as of January 1, 1996, as a nonqualified
deferred compensation agreement for the benefit of non-employee Directors eligible to participate in the Plan ("Participants") and their beneficiaries. 

        WHEREAS,
the Plan is maintained as a deferred compensation plan exclusively for non-employee Directors and falls outside the coverage of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"). 

        WHEREAS,
it is the intention of the Company to make contributions to this trust ("Trust") to provide itself with a source of funds to assist it in the meeting of its liabilities under
the Plan, and it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan maintained for purposes of
providing benefits not covered under Title I of ERISA. 

        WHEREAS,
the Trust hereby created is intended to be a grantor trust (as that term is defined in Section 671 of the Internal Revenue Code of 1986, as amended), and the Company
shall include all items of Trust income and expenses in its income tax return for the year in which such income is earned and such expenses are incurred. 

        WHEREAS,
the Company has, concurrent with the execution and delivery of this Trust Agreement, delivered to the Trustee certain monies and other assets to fund the Trust equal in value to
the balance of Participants' Accounts under the Plan as of the date of delivery, and the Trustee has agreed to hold the same, together with any such monies and other assets, as the Company shall in
the future determine and deliver to the Trustee, in trust. All property, monies, securities, and other assets as the Trustee may hereafter at any time hold or acquire, including any gains or losses
thereon, shall
constitute the corpus of the Trust. The Trust thus created has been created solely to aid in the proper execution of the Plan and, except as otherwise provided in Sections 12 and 13, shall be availed
of solely for such purposes. 

        WHEREAS,
except as otherwise provided in Sections 12 and 13, it shall be impossible, whether by operation or termination of the Trust, or by any other means, for any part of the Trust
assets to be used for, or diverted to, purposes other than the exclusive benefit of any Participant or beneficiary and the payment of the expenses of the administration of the Plan and Trust prior to
the satisfaction of all liabilities for benefits and expenses under the Plan and the Trust. 

        WHEREAS,
the definitions of defined terms under the Plan shall apply to this Agreement wherever applicable, and each gender shall include the others, and the singular shall include the
plural, and the term "Participant" shall include the Participant's beneficiary who is entitled to current payments from the Trust under the terms of the Plan. 

 

        NOW,
THEREFORE, in consideration of the foregoing promises and of the mutual covenants hereinafter contained, the Company and the Trustee hereby agree as follows: 

        Section 1.    The Trust Assets.    

        a.     Company
contributions and Plan assets shall be paid or transferred to the Trustee from time to time as the Committee may determine. All Company contributions and Plan
assets paid or transferred to the Trustee and all investments thereof, together with all accumulations, accruals, earnings and income with respect thereto, shall be held in trust by the Trustee as the
Trust assets. The Trust assets shall be held and invested by the Trustee pursuant to written instructions to the Trustee from the Committee. The Trustee shall not be responsible for the computation or
collection of Company contributions, but shall hold, invest, reinvest, manage, administer and distribute the Trust assets, as directed by the Committee and as provided herein, for the exclusive
benefit of Participants and their beneficiaries (except as provided in Sections 12 and 13). 

        b.     However,
for each Plan year, the Company shall irrevocably deposit additional cash or other property to the Trust in the amount to be allocated to Participants' Accounts
for the Plan year. Such deposits shall be made on, or as soon as administratively practicable following, the date on which the contributions would have otherwise been paid directly to the
Participants. 

        Section 2.    Investment.    

        a.     The
Trustee shall, as directed by the Committee, place Trust assets in life insurance and/or annuity contracts, savings accounts, certificates of deposit, stocks and
bonds of corporations, any kind of investment fund (open-end or otherwise), common trust fund, or in any other kind of realty or personalty. 

        b.     If
all or any portion of the Trust shall be invested at any time in life insurance or annuity contracts ("insurance contracts"), such insurance contracts shall be assets
of the Trust. The Trustee shall be the owner and beneficiary under such insurance contracts. All rights and privileges granted under the insurance contracts (including, but not limited to, the right
to collect the death benefit of the insurance contracts, the right to make policy loans on the insurance contracts, and the right to determine the timing and method of payment under the insurance
contracts) shall be exercised by the Trustee as directed by the Committee. 

        c.     The
Trustee shall not be liable for the making, retaining, or selling of any investment or reinvestment by it as is provided for in this Section 2, or for any loss
to or diminution of the Trust assets, so long as such actions are taken in accordance with proper direction of the Committee, except the Trustee shall remain liable for its own willful misconduct or
failure to act in good faith. 

        d.     Notwithstanding
any provision of the Plan or Trust to the contrary, the Company shall at all times have the power to reacquire Trust assets by substituting other assets
(other than stock, an obligation, or other security issued by the Company or related entity) of an equivalent value, and such other assets shall, following such substitution, constitute the Trust
fund. 

        e.     The
Committee may, in its sole discretion, direct the Trustee to create one or more separate investment funds having such different specific investment objectives as the
Committee shall from time to time determine. The Committee shall determine and may from time to time redetermine investment funds or the investments which shall be authorized. The Committee may allow
each Participant the right to direct the Trustee in writing to invest an amount equivalent to the balance of his Account in one or more separate investment funds or investments, provided that such
right to direct shall apply on a nondiscriminatory basis to all Participants who meet the requirements of the Committee. The Committee may at any time make such uniform and nondiscriminatory rules as
it determines necessary regarding the administration of a directed investment option. The Committee shall develop and 

2

 

maintain
rules governing the rights of Participants to change their investment directions and the frequency with which such changes can be made. 

        Section 3.    Administration.    

        a.     The
Trustee shall open and maintain and administer separate Accounts for Participants. Each Participant's Account shall reflect the amounts allocated thereto and
distributed therefrom and such other information as affects the value of such Account pursuant to the Plan. The records of the Participants' Accounts shall be maintained by the Trustee and shall
accurately disclose the value of the Participants' Accounts. 

        b.     For
each Plan year, the Trustee shall allocate Company contributions to Participants' Accounts and maintain such Accounts pursuant to the terms of the Plan. The Trustee
shall have the authority and responsibility to establish the fair market value of the Trust assets, to value Accounts as of each valuation date, and to render accountings of its administration of the
Trust. As of each valuation date, being the last day of each Plan year and any other date the Committee directs the Trustee to value the Trust assets, including on a daily valuation basis for
appropriate investments, the net income or loss of the aggregate Trust assets since the preceding valuation date, including net appreciation or depreciation and any expenses paid by the Trust, shall
be allocated to each Account in the ratio that the value, as of the next preceding valuation date, of each such Account invested in Trust assets bears to the value, as of the next preceding valuation
date, of all Accounts invested as Trust assets. If one or more separate investment funds have been established under the Trust, the net income or loss of each investment fund shall be similarly but
separately allocated to each Account invested in such investment fund in proportion to the value of each Account invested in such fund as of the preceding valuation date. The Trustee shall adopt
equitable procedures to establish a proportionate crediting of Trust income or loss to those portions of Participants' Accounts in the case of contributions, transfers, withdrawals, distributions, or
other transactions that have occurred in the interim period since the next preceding valuation date. 

        c.     All
determinations made by the Trustee with respect to the value of the Trust assets shall be made in accordance with generally accepted principles of trust accounting,
and such determinations when so made by the Trustee, shall be conclusive and binding on all persons having an interest under the Trust. 

        Section 4.    Trustee's Powers.    

        a.     As
directed by the Committee, the Trustee shall have the authority and power to: 

          (i)  Sell,
transfer, mortgage, pledge, lease or otherwise dispose of, or grant options with respect to any Trust assets at public or private sale; 

         (ii)  Vote
any stocks, bonds or other securities held in the Trust, or otherwise consent to or request any action on the part of the issuer in person or by proxy; 

        (iii)  Give
general or specific proxies or powers of attorney with or without powers of substitution; 

        (iv)  Exercise
any options, subscription rights and conversion privileges; 

         (v)  Sue,
defend, compromise, arbitrate or settle any suit or legal proceeding or any claim due it or on which it is liable; 

        (vi)  Perform
all acts which the Trustee shall deem necessary or appropriate and exercise any and all power and authority of the Trustee under this Agreement; and 

       (vii)  Exercise
any of the powers of an owner with respect to Trust assets. 

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        b.     The
Committee may authorize the Trustee to act on any matter or class of matters with respect to which direction or instruction to the Trustee by the Committee is called
for hereunder without specific direction or other instruction from the Committee. 

        Section 5.    Nominees.    The Trustee may register any securities or other property held by it as Trust assets
hereunder in its own name or in the name of its nominees with or without the addition of words indicating that such securities are held in a fiduciary capacity, and may hold any securities in bearer
form, but the books and records of the Trustee shall at all times show that all such investments are part of the Trust. 

        Section 6.    Records.    The Trustee shall keep accurate and detailed accounts of all investments, receipts and
disbursements and other transactions hereunder, and all accounts, books and records relating thereto shall be open to inspection by any person designated by the Committee at all reasonable times. The
Trustee shall maintain such records, make such computations, and perform such ministerial acts as the Committee may from time to time request. 

        Section 7.    Reports.    Within sixty (60) days after each Plan Year, or the removal or resignation of the
Trustee, and as of any other date specified by the Committee, the Trustee shall file a report with the Committee. This report shall show all purchases, sales, receipts, disbursements, and other
transactions effected by the Trustee during the year or period for which the report is filed, and shall contain an exact description, the cost as shown on the Trustee's books, and the fair market
value as of the end of such period, of every asset held in the Trust and the amount and nature of any debt obligation owed by the Trust. Within sixty (60) days after each Plan year, the Trustee
shall also file with the Committee valuation and allocation reports reflecting the investment and value of Participants' Accounts determined as of the last day of the Plan year. 

        Section 8.    Distributions.    

        a.     The
Trustee shall make distributions from the Trust at such times and amounts to the person entitled thereto under the Plan, as the Committee directs in writing.
Consistent with the Plan, the Committee shall deliver to the Trustee a schedule that indicates the amounts payable in respect to each Participant, the form in which such amount is to be paid (as
provided for or available under the Plan), and the time of commencement for payment of such amounts. 

        The
Trustee shall make provision for reporting and withholding of any federal or State taxes that may be required to be withheld with respect to the payment of benefits and shall pay
amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld, and paid by the Company. 

        b.     The
Company may make payment of benefits directly to Participants as they become due under the terms of the Plan. The Company shall notify the Trustee of its decision to
make payment of benefits directly prior to the time amounts are payable to Participants. In addition, if Trust assets are not sufficient to make payments of benefits in accordance with the terms of
the Plan, the Company shall make the balance of each such payment as it falls due. The Trustee shall notify the Company where Plan assets are not sufficient. 

        Section 9.    Signatures.    All communications required hereunder from the Committee to the Trustee shall be in
writing signed by any individual authorized to sign on its behalf. The Committee shall authorize one or more individuals to sign on its behalf all communications required hereunder between the
Committee and the Trustee. The Committee shall at all times keep the Trustee advised of the names and specimen signatures of all individuals authorized to sign on behalf of the Committee. The Trustee
shall be fully protected in relying on any such communication and shall not be required to verify the accuracy or validity thereof unless it has reasonable grounds to doubt the authenticity of any
signature. 

4

 

        Section 10.    Expenses.    The Trustee may employ suitable agents and advisors for the Trust. The expenses incurred
by the Trustee in the performance of its duties hereunder, and all other proper and reasonable charges and administrative expenses of the Trust, shall be paid by the Company. However, normal brokerage
charges, commissions, taxes and other costs incident to the purchase and sale of securities which are included in the cost of securities purchased (or charged against the proceeds, in the case of
sales) shall be charged to and paid out of Trust assets. The Trustee shall be entitled to such compensation as may be agreed upon from time to time between the Trustee and the Committee. If the
Trustee undertakes or defends any litigation arising in connection with this Trustee, the Company agrees to indemnify the Trustee against the Trustee's costs, expenses, and liabilities (including,
without limitation, attorneys' fees and expenses) relating thereto and to be primarily liable for such payments. 

        Section 11.    Liability.    The Trustee shall not be liable for the making, retention or sale of any investment or
reinvestment made by it as herein provided, nor for any loss to or diminution of the Trust assets, nor for any action it takes or refrains from taking at the direction of the Committee. The Trustee
shall not be required to pay interest on any part of the Trust assets which are held uninvested pursuant to the direction of the Committee. 

        Section 12.    Amendment and Termination.    

        a.     The
Trust shall be irrevocable and may not be amended or terminated by the Company. However, the Trust may be amended by a written agreement between the Trustee and the
Company (i) with the written consent of affected Participants; or (ii) as necessary to obtain a favorable ruling from the Internal Revenue Service with respect to the tax consequences of
the Plan and the Trust; or (iii) to conform its provisions to the requirements of applicable laws or regulations; or (iv) to supply any omission, cure any ambiguity, correct or
supplement any defective or inconsistent provision, or otherwise modify any Trust provision in any way. Any modification or amendment shall not adversely affect the rights of the Participants or their
beneficiaries under the Plan or Trust with respect to benefits accrued as of the date of the modification or amendment, unless such modification or amendment is made with the consent of affected
Participants. Before any amendment is made pursuant to clause (i), the Company shall deliver to the Trustee a certification of proper compliance with the consent requirements of this paragraph. 

        b.     The
Trust shall terminate upon receipt by the Trustee from the Company of an accounting confirming that all such liabilities have been satisfied. After the satisfaction
of all liabilities under the Plan, the Trust shall terminate and any assets remaining in the Trust shall be distributed by the Trustee to the Company. 

        Section 13.    Nonassignment and General Creditors.    

        a.     Except
as otherwise required by law, the Trust assets shall not be subject to the assignment, alienation, pledge, or attachment for the benefit of any Participant, or
claims of the creditors of any Participant, and shall not otherwise be voluntarily or involuntarily alienated or encumbered by any Participant. Participants shall have no preferred claims on, or
beneficial ownership interest in, any assets of the Trust. Any rights created under the Plan and this Trust shall be mere unsecured contractual rights of Participants against the Company. 

        b.     Notwithstanding
any provision herein to the contrary, the income and principal of this Trust shall remain subject to the claims of the Company's general creditors as if
the assets of the Trust were general assets of the Company. In no event, however, shall creditors of the Company be paid with assets of the Trust unless the Trustee has been so directed by a court, or
a person appointed by a court, having competent jurisdiction over the financial affairs of the Company. In addition, the Company shall be prohibited from creating a security interest in the Trust in
favor of any of its creditors. 

        c.     If
any entity is or becomes the successor employer under the Plan, it shall automatically become the successor employer to this Trust Agreement. 

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        d.     The
Committee shall have the duty to inform the Trustee in writing if and when the Company becomes "Insolvent" as hereinafter defined. When so informed, the Trustee shall
immediately discontinue payments to Participants under this Trust Agreement, shall hold the portion of the Trust assets for the benefit of the Company's general creditors, and shall resume payments to
Participants only after the Trustee has determined that the Company is not Insolvent (or is no longer Insolvent, assuming an initial determination that the Company was Insolvent) or after receipt of
an order of a court of competent jurisdiction to such effect. The Company shall be considered "Insolvent" for purposes of this Trust Agreement at any time: (a) the Company is unable to pay its
debts as they mature, or (b) the Company is a debtor in a pending proceeding under the Bankruptcy Code. If the Trustee receives other written allegations from a person claiming to be a creditor
of the Company that the Company has become Insolvent, the Trustee shall independently determine whether the Company is Insolvent and, pending such determination, the Company shall discontinue payments
to Participants, shall hold the Trust assets for the benefit of the Company's general creditors, and shall resume payments to Participants only after the Trustee has determined that the Company is not
Insolvent (or is no longer Insolvent, assuming the Trustee initially determined the Company to be Insolvent) or after receipt of an order of a court of competent jurisdiction to such effect. If the
Trustee discontinues payments under this Section 13, and subsequently resumes such payments, the first payments to Participants following such discontinuance shall include the aggregate amount
of all payments that would have been made to Participants during the period of such discontinuance, less the aggregate amount of payments made to Participants by the Company during any such period of
discontinuance. Nothing in this Trust Agreement shall in any way diminish any rights of Participants to pursue their rights as general creditors of the Company with respect to benefits due under the
Plan. 

        e.     Unless
the Trustee has actual knowledge of the Company's Insolvency, or has received notice on behalf of the Company or a person claiming to be a creditor of the Company,
the Trustee shall have no duty to inquire whether the Company is Insolvent. The Trustee may rely on such evidence concerning the Company's Insolvency as may be furnished to the Trustee and that
provides the Trustee with a reasonable basis for making a determination concerning the Company's Insolvency. 

        Section 14.    Resignation or Removal of Trustee.    

        a.     The
Trustee may resign at any time upon sixty (60) days written notice to the Company. The Trustee may be removed at any time by the Company upon sixty
(60) days written notice to the Trustee. Upon the receipt of instructions or directions from the Committee with which the Trustee is unable or unwilling to comply, the Trustee may resign upon
notice in writing to the Company given within a reasonable time, under the circumstances then prevailing, after the receipt of such instructions or directions; and, notwithstanding any other
provisions hereof, in that event, the Trustee shall have no liability to the Company, or any person interested herein, for failure to comply with such instructions or directions. 

        b.     Upon
resignation or removal of the Trustee, the Company shall appoint a successor trustee or trustees. The successor trustee shall have the same powers and duties as are
conferred upon the Trustee hereunder, and the Trustee shall assign, transfer and pay over to such successor trustee all the Trust assets, together with such records or copies thereof as may be
necessary to the successor trustee. 

        c.     If
the Trustee resigns or is removed within one year of a "Change-in-Control", as defined below, the Trustee, and not the Company, shall select a
successor trustee or trustees prior to the effective date of the Trustee's resignation or removal. 

        Section 15.    Change-in-Control.    

        a.     Notwithstanding
any provision herein to the contrary, in the event of a "Change-in-Control" of the Company, the authority of the Committee to
direct the Trustee under this Trust Agreement shall terminate, and the Trustee shall act on its own discretion to carry out the terms of this Trust 

6

 

Agreement
in accordance with the Plan. For this purpose, a "Change-in-Control" shall mean any one or more of the following occurrences: (a) any person, including a
"group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the beneficial owner of shares of the Company having a 25% or more of the total number of votes that may
be cast for the election of Directors of the Company; or (b) as a result of, or in connection with, any such tender or exchange offer, merger, or other business combination, sale of assets, or
contested election, or any combination of the foregoing transactions, the persons who were Directors of the Company before the transaction shall cease to constitute a majority of the Board of
Directors of the Company or any successor to the Company. Notwithstanding the foregoing portion of this paragraph, the authority of the Committee to direct the Trustee under this Trust Agreement shall
be retained by or reverted to the Committee in the event of a Change-in-Control if such authority is approved by the unanimous written consent of the Participants. 

        b.     Upon
a Change-in-Control, the Company shall, as soon as possible, but in no event longer than 15 days following the
Change-in-Control, make an irrevocable contribution to the Trust in an amount that is sufficient to pay each Participant the benefits to which Participants would be entitled
pursuant to the terms of the Plan as of the date on which the Change-in-Control occurs. 

        Section 16.    Acceptance and Jurisdiction.    The Trustee hereby accepts this Trust and agrees to hold the existing
Trust assets, and all additions and accretions thereto, subject to all the terms and conditions of this Agreement, which shall be interpreted and construed under the laws of the United States, and to
the extent such laws are inapplicable, under the laws of the State of Hawaii. 

        Section 17.    Illegality.    In the event any provisions of this Agreement shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, but shall
be fully severable, and the Agreement shall be construed and enforced as if the illegal or invalid provisions had never been inserted herein. 

        IN
WITNESS WHEREOF, the Company and the Trustee have agreed to the terms of this Trust Agreement, executed this 26th day of July, 1996. 

	BANCORP HAWAII, INC.	 	HAWAIIAN TRUST COMPANY,
	

By	
 	

/s/  LAWRENCE M. JOHNSON      
	
 	

By	
 	

/s/  WALTER J. LASKEY      

	 	 	Its  Chairman and

      Chief Executive Officer	 	 	 	Its  Chairman and

      Chief Executive Officer
	

By	
 	

/s/  RICHARD J. DAHL      
	
 	

By	
 	

/s/  LAWRENCE M. JOHNSON      

	 	 	Its  President and Chief

      Operating Officer	 	 	 	Its  Vice Chairman

      
	 	 	"Company"	 	 	 	"Trustee"

7

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Exhibit 10.8  

 
 

BANCORP HAWAII, INC.    
    
    DIRECTOR STOCK COMPENSATION PROGRAM    
    
    (EFFECTIVE AS OF JANUARY 1, 1996)    
    

        1.    Purpose.    This Bancorp Hawaii, Inc. Director Stock Compensation Program (the "Program") is established
by Bancorp Hawaii, Inc. (the "Company"). The purpose of the Program is to advance the interests of the Company by encouraging and enabling members of the Board of Directors of the Company or of
Bank of Hawaii ("Directors") to acquire and retain throughout each member's tenure as a Director a proprietary interest in the Company by ownership of shares of the Company's common stock ("Common
Stock"). 

        2.    Elements of the Program.    The Program is composed of two parts. The first part is the Bancorp
Hawaii, Inc. Director Stock Option Plan ("Stock Option Plan"), and the second part is the Bancorp Hawaii, Inc. Director Restricted Share Plan ("Restricted Share Plan") (collectively, the
"Plans"). The Stock Option Plan and Restricted Share Plan respectively comprise Plan I and Plan II of the Program. 

        3.    Applicability of General Provisions.    The Plans shall be administered, construed, governed, and amended in
accordance with their respective terms. Unless any Plan specifically indicates to the contrary, all Plans shall be subject to the General Provisions of the Stock Compensation Program set forth below. 

GENERAL PROVISIONS OF STOCK COMPENSATION PROGRAM  

        Article 1.    Administration.    The Program shall be administered by the Compensation Committee of the
Company's Board of Directors (the "Committee"). 

        The
Committee shall hold meetings at such times and places as they may determine, shall keep minutes of their meetings, and shall adopt, amend, and revoke such rules and procedures as
they may deem proper with respect to the Program. Any action of the Committee shall be taken by majority vote or the unanimous written consent of the Committee members. 

        Article 2.    Authority of Committee.    Subject to the other provisions of this Program, and with a view to
effecting its purpose, the Committee shall have sole authority, in its absolute discretion: (a) to construe and interpret the Program; (b) to define the terms used herein; (c) to
determine, to the extent not provided by the Program or the relevant Plan, the terms and conditions of options and restricted shares granted pursuant to the terms of the Program; and (d) to
make all other determinations and do all other things necessary or advisable for the administration of the Program. All decisions, determinations, and interpretations made by the Committee shall be
binding and conclusive on all participants in the Program and on their legal representatives, heirs, and beneficiaries. 

        Article 3.    Maximum Number of Shares Subject to the Program.    The aggregate number of shares of Company
common stock ("Common Stock") which may be granted under the Plans shall be 250,000 shares. The shares of Common Stock to be issued upon exercise of an option or issued as restricted shares may be
authorized but unissued shares or reacquired shares. 

        If
any of the options granted under the Program expire or terminate for any reason before they have been exercised in full, the unpurchased shares subject to those expired or terminated
options shall cease to reduce the number of shares available for purposes of the Program. However, notwithstanding that the conditions associated with a grant of restricted shares are not achieved
within the period specified for satisfaction of the applicable conditions, or that the restricted share grant terminates for any reason before the date on which the conditions must be satisfied, the
shares of Common Stock associated with such restricted shares shall reduce the number of shares available for purposes of the Program. 

        Article 4.    Eligibility and Participation.    Any Director entitled to compensation by the Company or Bank of
Hawaii for service as a Director, other than a Director who is also a salaried officer or employee of the Company or any of its subsidiaries, shall be entitled to receive options and restricted shares
according to the terms of the Plans. In addition, those salaried officers or employees of the Company or any of its subsidiaries who as of January 1, 1996, are members of the Board of Directors
of Bank of Hawaii shall be entitled to receive restricted shares pursuant to the Restricted Share Plan. 

        All
references herein to "Directors" shall be construed to mean those persons who are eligible to participate in the Stock Option Plan and/or the Restricted Share Plan, as the context
may require. 

        Article 5.    Effective Date and Term of Program.    The Program shall become effective as of January 1,
1996, conditioned upon its adoption by the Board of Directors of the Company and subject to approval of the Program by the holders of a majority of the Company's outstanding stock entitled to vote
thereon at a meeting of the Company's stockholders following adoption of the Program by the Board of Directors, which vote shall be taken within 12 months of adoption of the Program by the
Company's Board of Directors; provided, however, that options and restricted shares may be granted under this Program prior to obtaining stockholder approval of the Program, but any such options or
restricted shares shall be contingent upon such stockholder approval being obtained and may not be exercised prior to such approval. The Program shall continue in effect for a term of ten years from
January 1, 1996, unless sooner terminated under Article 7 of these General Provisions. 

        Article 6.    Adjustments.    If the then outstanding shares of Common Stock are changed into or exchanged for
a different number or kind of shares or securities through merger, consolidation, combination, exchange of shares, other reorganization, recapitalization, reclassification, stock dividend, stock split
or reverse stock split, an appropriate and proportionate adjustment shall be made in the maximum number and kind of shares or securities as to which options and restricted shares may be granted under
this Program. A corresponding adjustment changing the number and kind of shares or securities allocated to unexercised options, restricted shares, or portions thereof, which shall have been granted
prior to any such change, shall likewise be made. Any such adjustment in outstanding options shall be made without change in the aggregate purchase price applicable to the unexercised portion of the
option, but with a corresponding adjustment in the price for each share or other unit of any security covered by the option. 

        Article 7.    Termination and Amendment of Program.    The Program shall terminate at the end of the term of
the Program described in Article 5, or shall terminate at such earlier time as the Board of Directors may determine. No options or restricted shares shall be granted under the Program after
that date. Subject to the limitation contained in Article 8 of these General Provisions, the Board of Directors may at any time without further reference to the Company's stockholders terminate
or suspend the Program or amend or revise its terms, including the form and substance of the option and restricted share agreements to be used hereunder; provided, however, that without approval by
the stockholders of the Company representing a majority of the voting power (as contained in Article 5 of these General Provisions) no amendment or revision shall (a) increase the
maximum aggregate number of shares that may be sold or distributed pursuant to options or restricted shares granted under this Program, except as permitted under Article 6 of these General
Provisions; (b) increase the maximum term established under the Plans for any option or restricted share; (c) permit the granting of an option or restricted share to anyone other than as
provided in Article 4 of the General Provisions; or (d) alter the exercise price for any option; and provided further that no amendment which requires stockholder approval in order for
the Program to continue to comply with Rule 16b-3 under the Securities Exchange Act of 1934 (the "Exchange Act"), including any successor to such Rule, shall be effective unless
such amendment shall be approved by the requisite vote of stockholders of the Company entitled to vote thereon. 

        Article 8.    Prior Rights and Obligations.    No amendment, suspension, or termination of the Program shall,
without the consent of the individual who has received an option or restricted share, alter or impair any of that person's rights or obligations under any option or restricted share granted under the
Program prior to that amendment, suspension, or termination. However, the grant of an 

option
or restricted share shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure; to
merge or consolidate; or to dissolve, liquidate, or sell or transfer all or any part of its business or assets. 

        Article 9.    Privileges of Stock Ownership.    Notwithstanding the exercise of any option granted pursuant to
the terms of this Program or the achievement of any conditions specified in any restricted share granted pursuant to the terms of this Program, no individual shall have any of the rights or privileges
of a stockholder of the Company in respect of any shares of stock issuable upon the exercise of his or her option or the satisfaction of his or her restricted share conditions until certificates
representing the shares have been issued and delivered. No shares shall be required to be issued and delivered upon exercise of any option or satisfaction of any conditions with respect to a
restricted share unless and until all of the requirements of law and of all regulatory agencies having jurisdiction over the issuance and delivery of the securities shall have been fully complied
with. 

        Article 10.    Reservation of Shares of Common Stock.    The Company, during the term of this Program, shall at
all times reserve and keep available such number of shares of its Common Stock as shall be sufficient to satisfy the requirements of the Program. 

        Article 11.    Continued Service.    Nothing contained in this Program shall be construed as conferring upon a
Director the right to continue in the service of the Company or of Bank of Hawaii as a Director or in any other capacity. Further, nothing contained in this Program or in any option or restricted
share granted hereunder shall be deemed to create any obligation on the part of the Board of Directors of the Company or of Bank of Hawaii to nominate any Director for reelection. 

        Article 12.    Tax Withholding.    The exercise of any option or restricted share granted under this Program is
subject to the condition that if at any time the Company shall determine, in its discretion, that the satisfaction of withholding tax or other withholding liabilities under any state or federal law is
necessary or desirable as a condition of, or in connection with, such exercise or the delivery or purchase of shares pursuant thereto, then in such event, the exercise of the option or restricted
share shall not be effective unless such withholding shall have been effected or obtained in a manner acceptable to the Company. 

        Article 13.    Gender.    Wherever any words are used under the Program in the masculine, feminine, or neuter
gender, they shall be construed as though they were also used in another gender in all cases where they would so apply. 

        Article 14.    Rule 16b-3 Requirements.    With respect to Directors who are subject to the
provisions of Section 16 of the Exchange Act, the provisions of the Program and all transactions thereunder are intended and shall be construed and applied so as to comply with all applicable
requirements and conditions of Rule 16b-3 or any successor Rule under the Exchange Act. To the extent any provision of the Program or action by the Committee fails to so comply, it
shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 

AMENDMENT NO. 97-1 TO

THE PACIFIC CENTURY FINANCIAL CORPORATION

DIRECTOR STOCK COMPENSATION PROGRAM  

        In accordance with the provisions of its Article 7, the Pacific Century Financial Corporation Director Stock Compensation Program ("Program") is amended
effective as of November 1, 1997, as follows: 

        1.     New
Section 8A shall be added at the end of Section 8, Plan I, Pacific Century Financial Corporation Director Stock Option Plan, as follows: 

        Section 8A.
Option Rights Upon Disability of Optionee. If an optionee under this Plan ceases to serve as a Director due to "Disability", his option shall expire one year after the
date of such termination of service unless by its terms it expires sooner. During this one year or shorter period, the option may be exercised, to the extent that it remains unexercised on the date of
such termination of service, by the optionee or by his legal guardian on behalf of the optionee. For purposes of this Section 8A, the term "Disability" shall mean disability as defined under
the then existing insured disability income benefit program maintained by the Bank of Hawaii, regardless of whether the optionee is covered under such program. 

        2.     The
reference to "death" in Section 7, Plan I, Pacific Century Financial Corporation Director Stock Option Plan, shall be revised to refer to the phrase
"death or Disability (as described in Section 8A below)". 

        3.     The
first sentence, Section 7, Plan II, Pacific Century Financial Corporation Restricted Share Plan, shall be removed and the following provisions shall be
inserted in lieu thereof: 

        The
restrictions set forth in Section 3 above relating to the forfeiture or redemption of restricted shares and Section 4 above relating to the nontransferability of restricted shares
shall lapse and no longer apply upon the earlier of (a) the expiration of the Restriction Period, (b) the death of the Director, (c) the cessation of service as a Director due to
"Disability", (d) the occurrence of a "Change in Control" of the Company, or (e) the removal of the Director from office by stockholders without cause. A "Disability" shall mean
disability as defined under the then existing insured disability income benefit program maintained by the Bank of Hawaii, regardless of whether the Director is covered under such program. 

        4.     The
references to "clause (b), (c), or (d) of Section 7 below" which are contained in Section 3, Plan II, Pacific Century Financial Corporation
Restricted Share Plan, shall be revised to refer to "clause (b), (c), (d), or (e) of Section 7 below". 

        To
record the adoption of this amendment to the Program, Pacific Century Financial Corporation has executed this document this 24th day of October, 1997. 

	 	 	PACIFIC CENTURY FINANCIAL CORPORATION
	

 	
 	

By	

/s/  LAWRENCE M. JOHNSON      
 Its Chief Executive Officer
	

 	
 	

By	

/s/  RICHARD J. DAHL      
 Its President

RESOLUTIONS OF

THE BOARD OF DIRECTORS OF

PACIFIC CENTURY FINANCIAL CORPORATION  

RE: APPROVAL OF AMENDMENT NO. 2001-1 TO THE PACIFIC CENTURY FINANCIAL CORPORATION DIRECTOR STOCK COMPENSATION PROGRAM  

        WHEREAS,
Pacific Century Financial Corporation (the "Corporation") maintains the Pacific Century Financial Corporation Director Stock Compensation Program (the "Program") for the purpose
of enabling Directors of the Corporation or the Bank of Hawaii to acquire and retain a proprietary interest in the Corporation by ownership of common stock of the Corporation; 

        WHEREAS,
Article 7 of the Program provides that the Program may be amended at any time by action of the Corporation's Board of Directors; and 

        WHEREAS,
the Corporation desires to amend the Program for purposes of modifying the grant amounts for options and restricted shares. 

        NOW,
THEREFORE, BE IT RESOLVED THAT the Corporation hereby adopts Amendment No. 2001-1 to the Program, in the form substantially as attached hereto, effective as of the date of adoption. 

        RESOLVED
FURTHER, that the appropriate officers of the Corporation are hereby authorized and directed to take any and all actions necessary or desirable to carry out the intent of the
foregoing resolutions. 

        I,
Cori C. Weston, hereby certify that I am the duly appointed Secretary of the Board of Directors of Pacific Century Financial Corporation, and that the above resolutions were adopted
at a meeting of the Board of Directors of such Corporation held on April 27, 2001, at which meeting a quorum was at all times present and acting, and that said resolutions are still in full force and
effect. 

	 	 	DATED:	April 27, 2001

	

 	
 	

BOARD OF DIRECTORS OF

PACIFIC CENTURY FINANCIAL

CORPORATION
	

 	
 	

By	

/s/  CORI C. WESTON      
 Its Secretary

AMENDMENT NO. 2001-1 TO

THE PACIFIC CENTURY FINANCIAL CORPORATION

DIRECTOR STOCK COMPENSATION PROGRAM  

        In
accordance with the provisions of its Article 7, the Pacific Century Financial Corporation Director Stock Compensation Program is amended effective as of the date of adoption of this
Amendment 2001-1, as follows: 

i)
The following provision shall be added at the end of Section 2 of the Pacific Century Financial Corporation Director Stock Option Plan: 

        Effective
as of the 2001 annual meeting, in lieu of the formula grant amounts as described in the preceding sentence, the following formula grant amount shall apply: an option for the
purchase of 3,000 shares to a Director who is a Director of either or both of the Company and the Bank of Hawaii. In addition to the above formula grants, the Committee may at its sole discretion
designate the Directors to whom other options shall be granted and determine the amount of the options so granted. 

ii)
The following provision shall be added at the end of Section 2 of the Pacific Century Financial Corporation Director Restricted Share Plan: 

        Effective
as of the 2001 annual meeting, in lieu of the formula grant amount as described in the preceding sentence, the automatic grant shall be equal to 200 restricted shares, and the
maximum aggregate limitation shall not apply. In addition to the above formula grants, the Committee may at its sole discretion designate the Directors to whom other restricted shares shall be granted
and determine the amount of the restricted shares so granted. 

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BANCORP HAWAII, INC. DIRECTOR STOCK COMPENSATION PROGRAM (EFFECTIVE AS OF JANUARY 1, 1996)

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