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Exhibit 10.40

EXECUTION VERSION
 AMENDED AND RESTATED WAIVER TO CREDIT AGREEMENT
THIS AMENDED AND RESTATED WAIVER TO CREDIT AGREEMENT, dated as of February 16, 2021 (this “Waiver”), to that certain Credit Agreement, dated as of August 31, 2018 (as amended by that certain Amendment No. 1 to Credit Agreement, dated as of December 3, 2019 and as amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”) by and among MARRIOTT VACATIONS WORLDWIDE CORPORATION, a Delaware corporation (“MVWC”), MARRIOTT OWNERSHIP RESORTS, INC., a Delaware corporation (the “MVW Borrower” or the “Borrower Representative”), the Lenders and other parties party thereto, and JPMORGAN CHASE BANK, N.A., as administrative agent and collateral agent (in such capacities, the “Administrative Agent”).  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement.
PRELIMINARY STATEMENTS:
WHEREAS, the Borrower Representative, the Required Revolving Credit Lenders and the Administrative Agent are party to that certain Waiver to Credit Agreement, dated as of May 14, 2020 (the “Existing Waiver”);
WHEREAS, this Waiver amends and restates in its entirety the Existing Waiver;
WHEREAS, the Borrower Representative has requested that the Required Revolving Credit Lenders consent to waive the requirements of Section 7.09 of the Credit Agreement for the fiscal quarters ending June 30, 2020 through December 31, 2021, and the Required Revolving Credit Lenders are willing to consent to such waiver on the terms and subject to the conditions set forth in this Waiver; and
WHEREAS, the Borrower Representative, the Required Revolving Credit Lenders and the Administrative Agent are willing to agree to this Waiver on the terms set forth herein.
NOW, THEREFORE, pursuant to Section 10.01 of the Credit Agreement, the parties hereto hereby agree as follows:
Section 1.Definitions.
As used in this Waiver, the terms listed in this Section 1 shall have the respective meanings set forth in this Section 1: 
“Covenant Suspension Period” means the period commencing on the Waiver Effective Date through (but not including) the Covenant Suspension Period Termination Date.
“Covenant Suspension Period Termination Certificate” means an irrevocable certificate of an Authorized Officer of the Borrower Representative (similar in form to a Compliance Certificate) (i) stating that such certificate is a Covenant Suspension Period Termination Certificate and (ii) certifying compliance with the Financial Covenant (without giving effect to Section 2 hereof) for the most recently ended Test Period and demonstrating such compliance in reasonable detail.
“Covenant Suspension Period Termination Date” means the earlier of (x) the date of delivery of the Compliance Certificate pursuant to Section 6.02 of the Credit Agreement for the fiscal quarter ending March 31, 2022 demonstrating compliance with the Financial Covenant and (y) the date on which the Borrower Representative delivers to the Administrative Agent a 

Covenant Suspension Period Termination Certificate; provided, that the Borrower Representative may only deliver a Covenant Suspension Period Termination Certificate once, on which date the waiver and agreements contained in Section 2 of this Waiver shall terminate.
“Modified Test Period” means (x) the Test Periods ending March 31, 2022, June 30, 2022 and September 30, 2022 or (y) if the Borrower Representative has delivered a Covenant Suspension Period Termination Certificate, the Test Period to which such Covenant Suspension Period Termination Certificate applies and the following two Test Periods.
“Waiver Effective Date” has the meaning specified in Section 4 hereof.
Section 2.Waiver.
(a)Each Lender party hereto (which Lenders collectively constitute the Required Revolving Credit Lenders) hereby agrees (x) to waive compliance with the Financial Covenant for the fiscal quarters ending June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 and (y) that the Compliance Certificates delivered for such fiscal quarters shall be revised to reflect such waiver; provided that without the consent of the Required Revolving Credit Lenders during the Covenant Suspension Period, MVWC and the Borrower Representative shall not, and shall not permit any of the Restricted Subsidiaries to, directly or indirectly:
(i)permit the sum of (x) the aggregate amount of cash and Cash Equivalents of MVWC and its Restricted Subsidiaries and (y) the aggregate available Revolving Credit Commitments as of the last day of each fiscal month of MVWC to be less than $300,000,000, and the Borrower Representative shall deliver a certificate to the Administrative Agent within five (5) Business Days following the end of each such fiscal month demonstrating compliance in reasonable detail (the “Minimum Liquidity Covenant”);
(ii)make any Restricted Payments pursuant to Section 7.06(f) in excess of $15,000,000 in the aggregate, or Section 7.06(j) in excess of $25,000,000 in the aggregate, or Section 7.06(k), (l)(ii), (m) or (n);
(iii)make any prepayments of Junior Debt;
(iv)make any Investments pursuant to Section 7.02(j), (t), (v) (provided that Investments in JV Entities shall be permitted in an aggregate amount, as valued at cost at the time each such Investment is made and including all related commitments for future Investments, of up to $25,000,000), (y) or (cc); and
(v)incur any Indebtedness in the form of Incremental Facilities, or Indebtedness pursuant to Section 7.03(f) (except as incurred in the ordinary course of business), (r), (t), (u) or (v), in each case that is secured by a Lien; provided that the MVW Borrower’s 6.125% Senior Secured Notes due 2025 shall be permitted in any event.
(b)Commencing on the Waiver Effective Date and through the earlier of (i) the Covenant Suspension Period Termination Date and (ii) December 31, 2021, the Applicable Rate with respect to Revolving Credit Loans and the Commitment Fee Rate shall be as set forth under Level V of the Pricing Grid.
(c)Solely for purposes of any Request for Credit Extension under the Revolving Credit Facility made during the Covenant Suspension Period, the impacts of the COVID-19 pandemic on the business, result of operations or financial condition of MVWC and its Restricted Subsidiaries, taken as 

a whole, will be disregarded for purposes of determining the accuracy of the representation made in Section 5.05(b) of the Credit Agreement to the extent such event or circumstance has been (i) publicly disclosed by MVWC in its securities filings (including, without limitation, any Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Current Report on Form 8-K) prior to the Waiver Effective Date or (ii) disclosed in the “Lender Presentation” (and/or any supplements thereto) provided by MVWC in connection with this Waiver.
It is understood and agreed that (i) upon any breach by the Borrower Representative of the agreements set forth herein, the waiver set forth in clause (a) above and the agreement set forth in clause (c) above shall immediately terminate and (ii) upon delivery of a Covenant Suspension Period Termination Certificate, the waiver and agreements set forth in clauses (a), (b) and (c) above shall immediately terminate; provided, that, notwithstanding the foregoing, (1) the Minimum Liquidity Covenant shall remain in full force and effect until the fiscal month ending December 31, 2021 and (2) failure of the Borrower Representative to deliver the certificate required by Section 2(a)(i) above shall be subject to a five (5) Business Day grace period.
Section 3.Consolidated EBITDA Calculation.  Upon and following the termination of the Covenant Suspension Period, and solely for the purpose of calculating the Financial Covenant, Consolidated EBITDA shall be (i) with respect to the first applicable Modified Test Period, the greater of (x) Consolidated EBITDA for such Test Period and (y) the product of (A) four and (B) Consolidated EBITDA for the most recently ended fiscal quarter of such Test Period, (ii) with respect to the second applicable Modified Test Period, the greater of (x) Consolidated EBITDA for such Test Period and (y) the product of (A) two and (B) the sum of (1) Consolidated EBITDA for the most recently ended fiscal quarter of such Test Period and (2) Consolidated EBITDA for immediately preceding fiscal quarter and (iii) with respect to the third applicable Modified Test Period, the greater of (x) Consolidated EBITDA for such Test Period and (y) the product of (A) 4/3 and (B) the sum of (1) Consolidated EBITDA for the most recently ended fiscal quarter of such Test Period and (2) the sum of Consolidated EBITDA for the two immediately preceding fiscal quarters.
Section 4.Conditions to Effectiveness. This Waiver shall become effective on the first date (the “Waiver Effective Date”) when, and only when, each of the applicable conditions set forth below have been satisfied (or waived) in accordance with the terms herein:
(a)this Waiver shall have been executed and delivered by the Borrowers, MVWC, the Administrative Agent and Required Revolving Credit Lenders;
(b)(i) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document shall be true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects as so qualified) on and as of the Waiver Effective Date with the same effect as though made on and as of such date except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; provided that (A) references to the “Closing Date” and the “Transactions” in Section 5.15 of the Credit Agreement shall be deemed to mean the “Waiver Effective Date” and the transactions contemplated by this Waiver, respectively and (B) the representation and warranty in Section 5.13 of the Credit Agreement shall apply to the written information furnished by or on behalf of a Loan Party to any Agent or Lender in connection with the transactions contemplated by this Waiver, and (ii) no Default shall exist or would result from the effectiveness of this Waiver and the consummation of the transactions contemplated by this Waiver;

(c)the Administrative Agent shall have received, for the account of each Revolving Credit Lender that submits its consent hereto, a consent fee in an amount equal to 0.05% of the Revolving Credit Commitments held by such Lender immediately prior to the Waiver Effective Date, which consent fee shall be earned, due and payable on, and subject to the occurrence of, the Waiver Effective Date; and
(d)the Administrative Agent shall have received a certificate dated as of the Waiver Effective Date and executed by a Responsible Officer of the Borrower Representative as to the matters set forth in Section 4(b) above.
Section 5.Acknowledgment and Confirmation. MVWC and each of the Borrowers hereby confirm and agree, on behalf of each of the Loan Parties, with respect to each Loan Document to which such Loan Parties are party to, that (i) all of their obligations, liabilities and indebtedness under such Loan Document shall remain in full force and effect on a continuous basis regardless of the effectiveness of this Waiver and (ii) all of the Liens and security interests created and arising under such Loan Document remain in full force and effect on a continuous basis, and the perfected status and priority of each such Lien and security interest continues in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged, regardless of the effectiveness of this Waiver, as collateral security for its obligations, liabilities and indebtedness under the Credit Agreement and related guarantees.
Section 6.Expenses. Each of the Loan Parties hereby reconfirms its respective obligations pursuant to Section 10.04 of the Credit Agreement to pay all reasonable and documented or invoiced out-of-pocket costs and expenses incurred by the Administrative Agent in connection with this Waiver.
Section 7.Amendment, Modification and Waiver. This Waiver may not be amended, modified or waived except in accordance with Section 10.01 of the Credit Agreement.
Section 8.Entire Agreement. This Waiver, the Credit Agreement, as waived hereby, and the other Loan Documents constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties hereto with respect to the subject matter hereof and thereof. Except as expressly set forth herein, this Waiver shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under, the Credit Agreement, nor alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which are ratified and affirmed in all respects and shall continue in full force and effect. It is understood and agreed that each reference in each Loan Document to the Credit Agreement, whether direct or indirect, shall hereafter be deemed to be a reference to the Credit Agreement as waived hereby. This Waiver shall not constitute a novation of any amount owing under the Credit Agreement and all amounts owing in respect of principal, interest, fees and other amounts pursuant to the Credit Agreement and the other Loan Documents shall, to the extent not paid or exchanged on or prior to the Waiver Effective Date, shall continue to be owing under the Credit Agreement or such other Loan Documents until paid in accordance therewith. This Waiver is a “Loan Document” for all purposes under Credit Agreement and the other Loan Documents, and the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
Section 9.GOVERNING LAW. THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. SECTIONS 10.14 AND 10.15 OF THE CREDIT AGREEMENT ARE HEREBY INCORPORATED BY REFERENCE INTO THIS WAIVER MUTATIS MUTANDIS AND SHALL APPLY HERETO.

Section 10.Severability. In the event any one or more of the provisions contained in this Waiver should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein, to the fullest extent permitted by applicable law, shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions 
Section 11.Counterparts and Electronic Signatures.  This Waiver may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Waiver by facsimile transmission or other customary means of electronic transmission (e.g., “pdf”) shall be as effective as delivery of an originally signed counterpart of this Waiver.  The words “delivery”, “execute,” “execution,” “signed,” “signature,” and words of like import in this Waiver and any document executed in connection herewith shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that upon the request of any party, any electronic signature shall be promptly followed by such manually executed counterpart.
 [Remainder of Page Intentionally Blank]

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Waiver as of the date first written above.

												
			MARRIOTT VACATIONS WORLDWIDE CORPORATION
			By: 	/s/ Joseph J. Bramuchi
			Name:  Joseph J. Bramuchi
			Title: Vice President
				
				
			MARRIOTT OWNERSHIP RESORTS, INC., 
as the MVW Borrower
			By:	/s/ Joseph J. Bramuchi
			Name:  Joseph J. Bramuchi
			Title: Vice President
				

[Signature page to Waiver to Credit Agreement]

												
			JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and a Revolving Credit Lender
			By: 	/s/ Jeffrey Miller
			Name:  Jeffrey Miller
			Title: Executive Director
				

[Signature page to Waiver to Credit Agreement]

												
			BANK OF AMERICA, N.A.,
as a Revolving Credit Lender
			By: 	/s/ Suzanne E. Pickett
			Name:  Suzanne E. Pickett
			Title: Senior Vice President
				

[Signature page to Waiver to Credit Agreement]

												
			HSBC BANK USA, N.A.,
as a Revolving Credit Lender
			By: 	/s/ Jay Fort
			Name:  Jay Fort
			Title:  Senior Vice President
				

[Signature page to Waiver to Credit Agreement]

												
			City National Bank of Florida,
as a Revolving Credit Lender
			By: 	/s/ Erik Weiner
			Name:  Erik Weiner
			Title:  Market President Central Florida
				

[Signature page to Waiver to Credit Agreement]

												
			TRUIST SECURITIES, INC.
as a Revolving Credit Lender
			By: 	/s/ J. Matthew Rowand
			Name:  J. Matthew Rowand
			Title:  Director
				

[Signature page to Waiver to Credit Agreement]

												
			U.S. Bank National Association,
as a Revolving Credit Lender
			By: 	/s/ Steven L Sawyer
			Name:  Steven L. Sawyer
			Title:  Senior Vice President
				
				

[Signature page to Waiver to Credit Agreement]

												
			CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as a Revolving Credit Lender
			By: 	/s/ William O'Day
			Name:  William O'Day
			Title:  Authorized Signatory
				
			By:	/s/ D. Andrew Maletta
			Name:  D. Andrew Maletta
			Title:  Authorized Signatory
				

[Signature page to Waiver to Credit Agreement]

												
			First Hawaiian Bank,
as a Revolving Credit Lender
			By: 	/s/ Derek Chang
			Name:  Derek Chang
			Title:  Senior Vice President
				

[Signature page to Waiver to Credit Agreement]

												
			DEUTSCHE BANK AG NEW YORK BRANCH,
as a Revolving Credit Lender
			By: 	/s/ Michael Strobel
			Name:  Michael Strobel
			Title:  Vice President
				michael-p.strobel@db.com
				212-250-0939
				
				
			By:	/s/ Philip Tancorra
			Name:  Philip Tancorra
			Title:  Vice President
				philip.tancorra@db.com
				212-250-6576
				
				

[Signature page to Waiver to Credit Agreement]

												
			BANK OF HAWAII,
as a Revolving Credit Lender
			By: 	/s/ Terri L. Okada
			Name:  Terri L. Okada
			Title:  Senior Vice President
				

[Signature page to Waiver to Credit Agreement]

												
			Fifth Third Bank, N.A.,
as a Revolving Credit Lender
			By: 	/s/ Andy Tessema
			Name:  Andy Tessema
			Title:  Vice President
				

[Signature page to Waiver to Credit Agreement]

												
			Synovus Bank,
as a Revolving Credit Lender
			By: 	/s/ Michael Sawicki
			Name:  Michael Sawicki
			Title:  Director
				

[Signature page to Waiver to Credit Agreement]

												
			THE BANK OF NEW YORK MELLON,
as a Revolving Credit Lender
			By: 	/s/ Rick Laudisi
			Name:  Rick Laudisi
			Title:  Managing Director
				

[Signature page to Waiver to Credit Agreement]

												
			MUFG Union Bank, N.A.,
as a Revolving Credit Lender
			By: 	/s/ Deborah L. White
			Name:  Deborah L. White
			Title:  Director
				

[Signature page to Waiver to Credit Agreement]

												
			WELLS FARGO BANK, NATIONAL ASSOCIATION,
as a Revolving Credit Lender
			By: 	/s/ Denis Waltrich
			Name:  Denis Waltrich
			Title:  Director
				

[Signature page to Waiver to Credit Agreement]Document

Exhibit 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF
THE SECURITIES EXCHANGE ACT OF 1934
Seacoast Banking Corporation of Florida (“Seacoast,” “we,” “our,” or “us”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, our common stock.
DESCRIPTION OF CAPITAL STOCK
The following descriptions are summaries of the material terms of our amended and restated articles of incorporation and amended and restated bylaws and include all material information with respect to our capital stock. Reference is made to the more detailed provisions of the amended and restated articles of incorporation and amended and restated bylaws, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein.
Common Stock
General
The following description of shares of Seacoast’s common stock, par value $0.10 per share, is a summary only and is subject to applicable provisions of the Florida Business Corporation Act, as amended, or the FBCA, and to Seacoast’s amended and restated articles of incorporation, as amended, and its amended and restated bylaws. Seacoast’s articles of incorporation provide that it may issue up to 120 million shares of common stock, par value of $0.10 per share. Seacoast common stock is listed on the NASDAQ Global Select Market under the symbol “SBCF.”
Voting Rights
Each outstanding share of Seacoast’s common stock entitles the holder to one vote on all matters submitted to a vote of shareholders, including the election of directors. The holders of Seacoast common stock possess exclusive voting power, except as otherwise provided by law or by articles of amendment establishing any series of Seacoast preferred stock.
There is no cumulative voting in the election of directors, which means that the holders of a plurality of Seacoast’s outstanding shares of common stock can elect all of the directors then standing for election. When a quorum is present at any meeting, questions brought before the meeting will be decided by the vote of the holders of a majority of the shares present and voting on such matter, whether in person or by proxy, except when the meeting concerns matters requiring the vote of the holders of a majority of all outstanding shares under applicable Florida law. Seacoast’s articles of incorporation provide certain anti-takeover provisions that require super-majority votes, which may limit shareholders’ rights to effect a change in control as described under the section below entitled “Anti-Takeover Effects of Certain articles of incorporation Provisions.”
Dividends, Liquidation and Other Rights
Holders of shares of common stock are entitled to receive dividends only when, as and if approved by Seacoast’s board of directors from funds legally available for the payment of dividends. Seacoast’s shareholders are entitled to share ratably in its assets legally available for distribution to its shareholders in the event of Seacoast’s liquidation, dissolution or winding up, voluntarily or involuntarily, after payment of, or adequate provision for, all of our known debts and liabilities and of any preferences of any series of our preferred stock that may be outstanding in the future. These rights are subject to the preferential rights of any series of Seacoast’s preferred stock that may then be outstanding.
Holders of shares of Seacoast common stock have no preference, conversion, exchange, sinking fund or redemption rights and have no preemptive rights to subscribe for any of our securities. Seacoast’s board of directors, under its articles of incorporation, may issue additional shares of its common stock or rights to purchase shares of its common stock without shareholder approval.
Restrictions on Ownership
The Bank Holding Company Act requires any “bank holding company,” as defined in the Bank Holding Company Act, to obtain the approval of the Federal Reserve prior to the acquisition of 5% or more of our common shares. Any person, other than a bank holding company, is required to obtain prior approval of the Federal Reserve to acquire 10% or more of our common shares under the Change in Bank Control Act. Any holder of 25% or more of our common shares, or a holder of 5% or more if 

such holder otherwise exercises a “controlling influence” over us, is subject to regulation as a bank holding company under the Bank Holding Company Act.
Certain provisions included in our amended and restated articles of incorporation and bylaws, as described further below, as well as certain provisions of the Florida Business Corporation Act and federal law, may discourage, delay or prevent potential acquisitions of control of us, particularly when attempted in a transaction that is not negotiated directly with, and approved by, our board of directors, despite possible benefits to our shareholders.
Transfer Agent and Registrar
The transfer agent and registrar for Seacoast common stock is Continental Stock Transfer and Trust Company.
Anti-Takeover Effects of Certain Articles of Incorporation Provisions
Seacoast’s articles of incorporation contain certain provisions that make it more difficult to acquire control of it by means of a tender offer, open market purchase, a proxy fight or otherwise. These provisions are designed to encourage persons seeking to acquire control of Seacoast to negotiate with its directors. Seacoast believes that, as a general rule, the interests of its shareholders would be best served if any change in control results from negotiations with its directors.
 Seacoast’s articles of incorporation provide for a classified board to which approximately one-third of its board of directors is elected each year at its annual meeting of shareholders. Accordingly, Seacoast’s directors serve three-year terms rather than one-year terms. The classification of Seacoast’s board of directors has the effect of making it more difficult for shareholders to change the composition of its board of directors. At least two annual meetings of shareholders, instead of one, will generally be required to effect a change in a majority of Seacoast’s board of directors. Such a delay may help ensure that its directors, if confronted by a shareholder attempting to force a proxy contest, a tender or exchange offer, or an extraordinary corporate transaction, would have sufficient time to review the proposal as well as any available alternatives to the proposal and to act in what they believe to be the best interests of Seacoast’s shareholders. The classification provisions apply to every election of directors, however, regardless of whether a change in the composition of Seacoast’s board of directors would be beneficial to Seacoast and its shareholders and whether or not a majority of its shareholders believe that such a change would be desirable.
The classification of Seacoast’s board of directors could also have the effect of discouraging a third party from initiating a proxy contest, making a tender offer or otherwise attempting to obtain control of Seacoast, even though such an attempt might be beneficial to Seacoast and its shareholders. The classification of Seacoast’s board of directors could thus increase the likelihood that incumbent directors will retain their positions. In addition, because the classification of Seacoast’s board of directors may discourage accumulations of large blocks of its stock by purchasers whose objective is to take control of Seacoast and remove a majority of its board of directors, the classification of its board of directors could tend to reduce the likelihood of fluctuations in the market price of its common stock that might result from accumulations of large blocks of its common stock for such a purpose. Accordingly, Seacoast’s shareholders could be deprived of certain opportunities to sell their shares at a higher market price than might otherwise be the case.
Seacoast’s articles of incorporation require the affirmative vote of the holders of not less than two-thirds of all the shares of its stock outstanding and entitled to vote generally in the election of directors in addition to the votes required by law or elsewhere in the articles of incorporation, the bylaws or otherwise, to approve: (a) any sale, lease, transfer, purchase and assumption of all or substantially all of its consolidated assets and/or liabilities, (b) any merger, consolidation, share exchange or similar transaction, or any merger of any significant subsidiary, into or with another person, or (c) any reclassification of securities, recapitalization or similar transaction that has the effect of increasing other than pro rata with the other shareholders, the proportionate amount of shares that is beneficially owned by an Affiliate (as defined in Seacoast’s articles of incorporation). Any business combination described above may instead be approved by the affirmative vote of a majority of all the votes entitled to be cast on the plan of merger if such business combination is approved and recommended to the shareholders by (x) the affirmative vote of two-thirds of Seacoast’s board of directors, and (y) a majority of the Continuing Directors (as defined in Seacoast’s articles of incorporation).
Seacoast’s articles of incorporation also contain additional provisions that may make takeover attempts and other acquisitions of interests in it more difficult where the takeover attempt or other acquisition has not been approved by its board of directors. These provisions include:
 
 

•A requirement that any change to Seacoast’s articles of incorporation relating to the structure of its board of directors, certain anti-takeover provisions and shareholder proposals must be approved by the affirmative vote of holders of two-thirds of the shares outstanding and entitled to vote;
•A requirement that any change to Seacoast’s bylaws, including any change relating to the number of directors, must be approved by the affirmative vote of either (a) (i) two-thirds of its board of directors, and (ii) a majority of the continuing directors (as defined in Seacoast’s articles of incorporation) or (b) (i) two-thirds of the shares entitled to vote generally in the election of directors and (ii) an Independent Majority of Shareholders. An “Independent Majority of Shareholders” means the majority of the outstanding voting shares that are not beneficially owned or controlled, directly or indirectly by a related party. For these purposes, a “related party” means a beneficial owner of 5% or more of the voting shares, or any person who is an affiliate of Seacoast and at any time within five years was the beneficial owner of 5% or more of Seacoast’s then outstanding shares; provided, however, that this provision shall not include (i) any person who is the beneficial owner of more than 5% of Seacoast’s shares on February 28, 2003, (ii) any plan or trust established for the benefit of Seacoast’s employees generally, or (iii) any subsidiary of Seacoast that holds shares in a fiduciary capacity, whether or not it has the authority to vote or dispose of such securities;
•A requirement that shareholders may call a meeting of shareholders on a proposed issue or issues only upon the receipt by Seacoast from the holders of 50% of all shares entitled to vote on the proposed issue or issues of signed and dated written demands for the meeting describing the purpose for which it is to be held; and
•A requirement that a shareholder wishing to submit proposals for a shareholder vote or nominate directors for election comply with certain procedures, including advanced notice requirements.
Seacoast’s articles of incorporation provide that, subject to the rights of any holders of its preferred stock to act by written consent instead of a meeting, shareholder action may be taken only at an annual meeting or special meeting of the shareholders and may not be taken by written consent. The articles of incorporation also include provisions that make it difficult to replace directors. Specifically, directors may be removed only for cause and only upon the affirmative vote at a meeting duly called and held for that purpose upon not less than thirty days prior written notice of (i) two-thirds of the shares entitled to vote generally in the election of directors and (ii) an Independent Majority of Shareholders. In addition, any vacancies on the board of directors for any reason, and any newly created directorships resulting from any increase in the number of directors, may be filled only by the board of directors (except if no directors remain on the board, in which case the shareholders may act to fill the vacant board).
Seacoast believes that the power of its board of directors to issue additional authorized but unissued shares of its common stock or preferred stock without further action by its shareholders, unless required by applicable law or the rules of any stock exchange or automated quotation system on which its securities may be listed or traded, will provide Seacoast with increased flexibility in structuring possible future financings and acquisitions and in meeting other needs that might arise. Seacoast’s board of directors could authorize and issue a class or series of stock that could, depending upon the terms of such class or series, delay, defer or prevent a transaction or a change in control that might involve a premium price for holders of Seacoast’s common stock or that its shareholders otherwise consider to be in their best interest.

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