Document:

Exhibit 4.30

 

EXECUTION VERSION

 

	
 
    

 

REGISTRATION RIGHTS AGREEMENT

 

 

between

 

 

DANAOS CORPORATION

 

 

and

 

 

THE HOLDERS IDENTIFIED ON THE SIGNATURE PAGES HERETO

 

 

 

Dated as of March 2, 2011

 

 

 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made as of March 2, 2011, between Danaos Corporation, a Marshall Islands corporation (the “Company”), and Holders of the Warrants identified on the signature pages hereto (the “Holders”).

 

WHEREAS, the Company is issuing, from time to time, up to an aggregate of 15,000,000 Warrants (the “Warrants”) to purchase shares of its common stock, par value U.S.$0.01 per share, which Warrants are governed by the Warrant Agreement, dated as of March 2, 2011 (the “Warrant Agreement”), between the Company and the American Stock Transfer and Trust Company, LLC, as Warrant Agent (the “Warrant Agent”); and

 

WHEREAS,  in connection with the issuance of the Warrants, the Company has agreed to provide the Holders with the registration rights set forth in this Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Certain Definitions.

 

As used in this Agreement, capitalized terms not otherwise defined herein shall have the meanings ascribed to them below:

 

“Commission” shall mean the U.S. Securities and Exchange Commission.

 

“Common Stock” shall mean the common stock, par value U.S.$0.01 per share, of the Company and any securities issued or issuable in exchange for or with respect to the common stock of the Company by way of a stock dividend, stock split or combination of shares or in connection with a reclassification, recapitalization, exchange, merger, consolidation or other reorganization.

 

“Common Stock Equivalent” shall mean all options, warrants and other securities convertible into, or exchangeable or exercisable for (at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which such securities may be subject) Common Stock.

 

“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.

 

“FINRA” shall mean Financial Industry Regulatory Authority, Inc.

 

“Holder” shall mean each holder of the Warrants, for so long as the holder owns any Registrable Securities (and includes any person that has a beneficial interest in any Registrable Security in book entry form).

 

“Majority Holders” shall mean all Holders which are parties to this Agreement and which hold more than 50% of the Registrable Securities.

 

“Person” shall mean any individual, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, unincorporated

 

 

organization or government or any agency or political subdivisions thereof.

 

“Registrable Securities” shall mean all Warrants and Warrant Shares, provided the Warrants and Warrant Shares shall cease to be Registrable Securities when (A) a registration statement with respect to the resale of the Warrants and the sale of Warrant Shares shall have been declared effective under the Securities Act and such Warrants or Warrant Shares shall have been disposed of in accordance with such registration statement, (B) such Warrants or Warrant Shares shall have been sold  pursuant to Rule 144 (or any successor provision) under the Securities Act, or (C) such Warrants or Warrant Shares are eligible to be sold to the public, without restriction, pursuant to Rule 144 (or any successor provision) or otherwise under the Securities Act.

 

“Rule 144” means Rule 144 promulgated under the Securities Act, as such Rule may be amended from time to time (or any successor provision).

 

“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company to be filed with the Commission pursuant to the provisions of Section 2 hereof which covers the Registrable Securities on an appropriate form together with any amendment and supplement to such registration statement, including a post-effective amendment, in each case including the prospectus contained therein, all exhibits thereto and any material incorporated by reference therein.

 

“Warrant Agreement” shall mean the Warrant Agreement, dated as of March 2, 2011, between the Company and the Warrant Agent, as it may be amended from time to time.

 

“Warrant Shares” shall mean the shares of Common Stock issuable upon exercise of the Warrants.

 

“Warrants” shall mean those warrants, issued by the Company and governed by the Warrant Agreement, from time to time to purchase up to an aggregate of 15,000,000 Warrant Shares.

 

2.             Shelf Registration.

 

2.1.       Registration Rights.  The Company shall:

 

(a)   as expeditiously as possible but no later than 120 days after the date of this Agreement cause to be filed with the Commission the initial Shelf Registration Statement, which Shelf Registration Statement shall provide for the registration of, and the offer and sale by the Holders on a continuous or delayed basis of, all of the Registrable Securities (provided that any Holder may request that some or all of its Registrable Securities not be included in the initial Shelf Registration Statement, without prejudice to such Holder’s right to have such Registrable Securities included in the second, and final, Shelf Registration Statement (the “Second Shelf Registration Statement”); in no event shall the Company be required to file more than two Shelf Registration Statements to cover all Warrants and Warrant Shares issued under the Warrant Agreement

 

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Exhibit A contains (i) a list of Holders electing not to include some or all of their Registrable Securities in the initial Shelf Registration Statement and (ii) a list of Persons electing to defer the issuance of their Registrable Securities, which Registrable Securities will not be included in the initial Shelf Registration Statement.

 

(b)   as expeditiously as possible but subject to Section 2.2, use its commercially reasonable efforts to cause the initial Shelf Registration Statement to be declared effective under the Securities Act;

 

(c)   use its commercially reasonable efforts to keep the initial Shelf Registration Statement continuously effective, supplemented and amended as required by the Securities Act in order to ensure that (A) it is available for resales by the Holders of Registrable Securities included therein and (B) conforms with the requirements of this Agreement and the Securities Act and the rules and regulations of the Commission promulgated thereunder as announced from time to time, for a period from the date the initial Shelf Registration Statement is declared effective by the Commission until the date on which no Registrable Securities remain outstanding; provided, however, the Company shall not be obligated to file more than one post-effective amendment to the Shelf Registration Statement or to amend or supplement the prospectus forming a part thereof in order to include information relating to an assignee of this Agreement pursuant to Section 5.4(a) hereof more frequently than once in any 90-day period.  If at any time the Warrants represent rights to purchase securities of the Company other than the Common Stock, the Company will use its commercially reasonable efforts to cause a replacement shelf registration statement covering such other securities to be filed and to become effective as promptly as practicable;

 

(d)   file the Second Shelf Registration Statement as expeditiously as possible following the request of Holders of a majority of Registrable Securities not included in the initial Shelf Registration Statement, who are or become parties to this Agreement; provided, however, that the Company shall have the right to delay the filing of the Second Shelf Registration Statement or to delay the effectiveness thereof, upon notice to the affected Holders, if there has occurred or there is pending a corporate development (including an offering of the Company’s securities) that, in the reasonable discretion of the Company, makes it appropriate to delay such filing or effectiveness of the Second Shelf Registration Statement.  Such delay or delays (each a “Period of Delay”) shall not exceed an aggregate of 90 days.  A Period of Delay shall continue only so long as the event continues and so long as the Company is pursuing with reasonable diligence the addressing of the matter that gave rise to the delay.  The Company shall promptly notify the Holders, whose Registrable Securities are to be included in the Second Shelf Registration Statement, when any Period of Delay has been lifted.

 

(e)   use its commercially reasonable efforts to keep the Second Shelf Registration Statement continuously effective, supplemented and amended as required by the Securities Act in order to ensure that (A) it is available for resales by the Holders of Registrable Securities included therein and (B) conforms with the requirements of this Agreement and the Securities Act and the rules and regulations of the Commission promulgated thereunder as announced from time to time, for a period from the date the Second Shelf Registration Statement is declared effective by the Commission until the date on which

 

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no Registrable Securities remain outstanding; provided, however, the Company shall not be obligated to file more than one post-effective amendment to the Second Shelf Registration Statement or to amend or supplement the prospectus forming a part thereof in order to include information relating to an assignee of this Agreement pursuant to Section 5.4(a) hereof more frequently than once in any 90-day period.  If at any time the Warrants represent rights to purchase securities of the Company other than the Common Stock, the Company will use its commercially reasonable efforts to cause a replacement shelf registration statement covering such other securities to be filed and to become effective as promptly as practicable.

 

2.2.       Notwithstanding anything to the contrary in Section 2.1, as a condition precedent to its obligations under Section 2.1, the Company may require that each Holder furnish the Company such information in writing regarding such Holder and the distribution of the Registrable Securities owned by such Holder, as the Company may reasonably request (including information required by the Commission), provided that such information is necessary for the Company to effect the registration of the Registrable Securities and shall be used only in connection with such registration.

 

3.             Registration Procedures.  In connection with its obligations under Section 2 hereof, the Company shall undertake to:

 

(a)           furnish, before filing a Shelf Registration Statement and prospectus and any amendments or supplements thereto, or comparable statements under securities or blue sky laws of any jurisdiction, or any free writing prospectus related thereto, to one counsel for the relevant Holders (selected by the Holders of a majority of Registrable Securities being registered under the applicable Registration Statement) copies of all such documents proposed to be filed (including all exhibits thereto), which documents will be subject to the review and reasonable comment of such counsel, and the Company shall not file a Shelf Registration Statement or any amendment thereto, any prospectus or any supplement thereto or any free writing prospectus related thereto to which the Holders of a majority of Registrable Securities being registered under the applicable Registration Statement shall reasonably object;

 

(b)           prepare and file with the Commission such amendments and supplements to a Shelf Registration Statement and the prospectus used in connection therewith as may be necessary to keep a Shelf Registration Statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all Registrable Securities covered by a Shelf Registration Statement in accordance with the intended methods of disposition by the relevant Holders thereof set forth in a Shelf Registration Statement;

 

(c)           furnish, without charge, to each Holder such number of copies of a Shelf Registration Statement, each amendment and supplement thereto (in each case including all exhibits), the prospectus (including each preliminary prospectus) included in a Shelf Registration Statement in conformity with the requirements of the Securities Act, each free writing prospectus utilized in connection therewith, and other documents, as such Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities owned by such Holder,  The Company consents to the use of the prospectus included in a Shelf Registration Statement and any amendment or supplement thereto by each of the

 

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Holders in connection with the offer and sale of the Registrable Securities covered by a Shelf Registration Statement;

 

(d)           use its commercially reasonable efforts to register or qualify the Registrable Securities covered by a Shelf Registration Statement under such other securities or “blue sky” laws where the Common Stock is listed for trading, and to do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder to consummate the disposition of the relevant Registrable Securities in such jurisdiction, except that in no event shall the Company be required to qualify to do business as a foreign corporation in any jurisdiction where it would not, but for the requirements of this paragraph (d), be required to be so qualified, to subject itself to taxation in any such jurisdiction or to consent to general service of process in any such jurisdiction;

 

(e)           promptly notify each Holder: (i) when a Shelf Registration Statement, any pre-effective amendment, the prospectus or any prospectus supplement related thereto, any post-effective amendment to a Shelf Registration Statement or any free writing prospectus has been filed and, with respect to such Shelf Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or state securities authority for amendments or supplements to a Shelf Registration Statement  or the prospectus related thereto or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Shelf Registration Statement or the initiation of any proceedings for that purpose and of the Company’s taking of any action pursuant to Section 3.1; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky laws of any jurisdiction or the initiation of any proceeding for such purpose; and (v) of the existence of any fact of which the Company becomes aware which, based on advice of the Company’s  counsel, results in a Shelf Registration Statement, any prospectus related thereto or any document incorporated therein by reference containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make any statement therein not misleading; and, if the notification relates to an event described in clause (v), the Company shall promptly prepare and furnish to each such Holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading;

 

(f)            use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Shelf Registration Statement;

 

(g)           use its commercially reasonable efforts to cause all Warrant Shares covered by a Shelf Registration Statement to be listed on the New York Stock Exchange or the principal securities exchange on which the Common Stock is then listed;

 

(h)           make generally available to its security holders an earnings statement satisfying the provisions of Section 11(a) of the Securities Act, and the applicable rules and regulations, as soon as practicable after the effective date of a Shelf Registration Statement

 

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and in any event no later than 18 months after the effective date (as defined in Rule 158(c) under the Securities Act) of a Shelf Registration Statement;

 

(i)            if requested by any Holder, promptly incorporate in a Shelf Registration Statement or related prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holder may reasonably request to have included therein, including, without limitation, information relating to the “Plan of Distribution” of the Registrable Securities; provided, however, that nothing herein shall be deemed to require the Company to participate in any underwritten offering of any Registrable Securities or to include information relating to an underwritten offering in the Plan of Distribution other than as set forth in Section 3 hereof;

 

(j)            cooperate and assist in any filings required to be made with the FINRA; and

 

(k)           cooperate with the relevant Holders, to facilitate the timely preparation and delivery of warrant certificates or stock certificates not bearing any restrictive legends representing the Registrable Securities to be sold, and cause such Registrable Securities to be issued in such denominations and registered in such names in accordance with the instructions of the relevant Holders at least three business days prior to any sale of Registrable Securities and instruct any transfer agent and registrar of Registrable Securities to release any stop transfer orders in respect thereof.

 

Each Holder agrees that upon receipt of any notice from the Company of the happening of any event of the kind described in clauses (ii) through (v) of paragraph (e) of Section 3, such Holder will discontinue disposing of Registrable Securities pursuant to a Shelf Registration Statement covering such Registrable Securities until the Company has remedied the basis for such suspension and, to the extent applicable, such Holder receives copies of the supplemented or amended prospectus contemplated by paragraph (e) of Section 3.

 

3.1.       Suspension of Shelf Registration Statement Availability.  The Company may suspend each Holder’s use of a Shelf Registration Statement (each such period, a “Suspension Period”) if (i) there has occurred or there is pending a corporate development that, in the reasonable discretion of the Company makes it appropriate to suspend the availability of a Shelf Registration Statement, (ii) there has occurred an event or some other fact exists as a result of which, based on advice of the Company’s  counsel, a Shelf Registration Statement or any document incorporated by reference therein, shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or any Prospectus, or any document incorporated by reference therein, shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (iii) the Commission or any U.S. state securities commission issues a stop order in respect of a Shelf Registration Statement or otherwise prohibits the use of the related prospectus.  Upon such suspension, the Company shall give notice to the Holders that the availability of a Shelf Registration Statement is suspended and, upon actual receipt of any such notice, each Holder agrees not to sell any Registrable Securities pursuant to such Shelf Registration Statement until such Holder’s receipt of copies of the

 

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supplemented or amended prospectus.  The Suspension Period or Suspension Periods shall not exceed an aggregate of 90  days in any 360-day period.  The Company shall not be required to specify in the written notice the Holders the nature of the event giving rise to the Suspension Period, nor shall the Company do so without the prior written consent of such Holder.  The Suspension Period shall continue only so long as the event continues and so long as the Company is pursuing with reasonable diligence the addressing of the matter that gave rise to the suspension.  The Company shall promptly notify the Holders when any Suspension Period with respect to a Shelf Registration Statement has been lifted.

 

3.2.       Registration Expenses.  The Company shall bear all expenses incurred in connection with the performance of its obligations under Sections 2 and 3 hereof.  The Holders will bear their individual selling expenses, including commissions and discounts and transfer taxes.

 

3.3.       No Required Sale.  Nothing in this Agreement shall be deemed to create an independent obligation on the part of any Holder to sell any Registrable Securities.

 

3.4.       Limitations on Sale or Distribution of Other Securities.  Each Holder of an amount of Registrable Securities that is equivalent to more than 5% of the underlying Common Stock outstanding at the time of any underwritten public offering effected by the Company agrees that, to the extent requested in writing by a managing underwriter of any underwritten public offering effected by the Company, not to sell any Common Stock or any Common Stock Equivalent (other than as part of such underwritten public offering) during the time period reasonably requested by the managing underwriter, which period shall not exceed 90 days provided, however, that in the event that either (a) during the last 17 days of the 90-day period referred to above the Company issues an earnings release or material news or a material event relating to the Company occurs or (b) prior to the expiration of the 90-day restricted period the Company announces that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the 90-day restricted period, the restrictions described above will continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event.

 

3.5.       Notice Information.  Subject to applicable law, each Holder shall be at liberty to disclose any information properly received by it under Section 3 hereof to (i) any Person, if any, who controls such Holder within the meaning of the Securities Act or any of its subsidiaries from time to time; (ii) any other company associated with the Holder; (iii) any of the Holder’s professional advisers; and (iv) any prospective transferee of Registrable Securities (provided that such prospective transferee is bound by an obligation of confidentiality).

 

4.             Indemnification.

 

(a)           The Company will, and hereby agrees to, indemnify and hold harmless, to the fullest extent permitted by law, (x) each Holder and their respective directors, officers, fiduciaries, employees, stockholders, members or general and limited partners (and the directors, officers, employees and stockholders thereof), and (y) each other Person, if any, who controls such Holder within the meaning of the Securities Act (any person referred to in clause

 

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(x) or (y) may hereinafter be referred to as an “Indemnified Holder”), from and against any and all losses, claims, damages or liabilities, joint or several, actions or proceedings (whether commenced or threatened) and expenses (including reasonable fees of counsel and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) to which each such Indemnified Holder may become subject under the Securities Act or otherwise (collectively, “Claims”) to the extent such Claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact in, or omission or alleged omission of a material fact from, a Shelf Registration Statement or amendment thereof or supplement thereto or any prospectus contained therein or any preliminary, final or summary prospectus or free writing prospectus utilized in connection therewith, and the Company will reimburse any such Indemnified Holder for any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claim as such expenses are incurred; provided, however, that the Company shall not be liable to any such Indemnified Holder in any such case to the extent such Claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact in, or omission or alleged omission of a material fact from, a Shelf Registration Statement or any amendment thereof or supplement thereto or any preliminary, final or summary prospectus or free writing prospectus utilized in connection therewith in reliance upon and in conformity with written information relating to any Holder furnished to the Company by or on behalf of such indemnified party specifically for use therein.  Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer of such securities by such Holder.

 

(b)           Each Holder shall, severally and not jointly, indemnify and hold harmless (in the same manner and to the same extent as set forth in paragraph (a) of this Section 4) to the extent permitted by law the Company, its officers and directors, each Person controlling the Company within the meaning of the Securities Act and all other prospective sellers and their respective directors, officers, fiduciaries, managing directors, employees, agents, affiliates, consultants, representatives, successors, assigns, general and limited partners, stockholders and respective controlling Persons with respect to any untrue statement or alleged untrue statement of any material fact in, or omission or alleged omission of any material fact from, a Shelf Registration Statement, any preliminary, final or summary prospectus contained therein, or any amendment or supplement thereto, or any free writing prospectus utilized in connection therewith, if such statement or alleged statement or omission or alleged omission was made in reliance upon and in conformity with written information relating to a Holder furnished to the Company or its representatives by or on behalf of such Holder expressly for use therein and reimburse such indemnified party for any legal or other expenses reasonably incurred in connection with investigating or defending any such Claim, to the extent such Claim arises out of or is based upon any untrue statement or alleged untrue statement of any material fact in, or omission or alleged omission of any material fact contained in written information relating to any Holder furnished to the Company by or on behalf of such Holder specifically for use therein, as such expenses are incurred; provided, however, that the aggregate amount which any such Holder shall be required to pay pursuant to Section 4(b) and Sections 4(c), (d) and (e) shall in no case be greater than the amount of the net proceeds received by such Holder upon the sale of the Registrable Securities pursuant to a Shelf Registration Statement giving rise to such Claim.  Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer of

 

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such Registrable Securities by such Holder.  Any Person entitled to indemnification under this Agreement shall notify promptly the indemnifying party in writing of the commencement of any action or proceeding with respect to which a claim for indemnification may be made pursuant to Section 4, but the failure of any such Person to provide such notice shall not relieve the indemnifying party of its obligations under the preceding paragraphs of Section 4, except to the extent the indemnifying party is materially prejudiced thereby and shall not relieve the indemnifying party from any liability which it may have to any such Person otherwise than under this Section 4.  In case any action or proceeding is brought against an indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, unless in the reasonable opinion of outside counsel to the indemnified party a conflict of interest between such indemnified and indemnifying parties may exist in respect of such Claim, to assume the defense thereof jointly with any other indemnifying party similarly notified, to the extent that it chooses, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party that it so chooses, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party; or (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction, except to the extent any indemnified party or parties reasonably shall have concluded that there may be legal defenses available to such party or parties which are not available to the other indemnified parties or to the extent representation of all indemnified parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct) and the indemnifying party shall be liable for any expenses therefor.  No indemnifying party shall, without the written consent of the indemnified party, which consent shall not be unreasonably withheld, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or proceeding) unless such settlement, compromise or judgment (A) includes an unconditional release of the indemnified party from all liability arising out of such action or proceeding and (B) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

 

(c)           If for any reason the foregoing indemnity is unavailable or is insufficient to hold harmless an indemnified party under Sections 4(a), (b) or (c), then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of any Claim in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to such offering of securities.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or

 

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alleged omission to state a material fact relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  If, however, the allocation provided in the second preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative benefits of the indemnifying party and the indemnified party as well as any other relevant equitable considerations.  The parties hereto agree that it would not be just and equitable if contributions pursuant to Section 4(e) were to be determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the preceding sentences of Section 4(e).  The amount paid or payable in respect of any Claim shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claim.  No Person guilty of fraudulent misrepresentation (within the meaning of section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  Notwithstanding anything in Section 4(e) to the contrary, no indemnifying party (other than the Company) shall be required pursuant to Section 4(e) to contribute any amount in excess of the net proceeds received by such indemnifying party from the sale of Registrable Securities in the offering to which the losses, claims, damages or liabilities of the indemnified parties relate, less the amount of any indemnification payment made by such indemnifying party pursuant to Sections 4(b) and (c).

 

(d)           The indemnity and contribution agreements contained herein shall be in addition to any other rights to indemnification or contribution which any indemnified party may have pursuant to law or contract and shall remain operative and in full force and effect regardless of any investigation made or omitted by or on behalf of any indemnified party and shall survive the transfer of any Registrable Securities by any such party.

 

(e)           The indemnification and contribution required by Section 4 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred.

 

5.             General.

 

5.1.       Rule 144A and Rule 144.

 

(a)           The Company agrees with each Holder, for so long as it holds any Registrable Securities and during any period in which the Company is not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any Holder, to such Holder or beneficial owner of Registrable Securities in connection with any sale thereof and any prospective purchaser of such Registrable Securities designated by such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act but only to the extent necessary to permit resales of such Registrable Securities pursuant to Rule 144 by a person who is not an affiliate of the Company.

 

(b)           In addition, if any Registrable Securities are held by any Holder at a time when the Company is not subject to the reporting requirements of Section 13(a) or 15(d)

 

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of the Exchange Act, the Company will make publicly available the information specified in Rule 144(c)(2) for the period specified in Rule 144(b)(1)(i).

 

5.2.       Amendments and Waivers.  The terms and provisions of this Agreement may be modified or amended, or any of the provisions hereof waived, temporarily or permanently, in a writing executed and delivered by the Company and the Majority Holders.  No waiver of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof (whether or not similar).  No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof.

 

5.3.       Notices.  All notices, requests, claims, demands and other communications required or permitted to be given hereunder to the Company or the Warrant Agent will be in writing and will be given when delivered by hand or sent by registered or certified mail (postage prepaid, return receipt requested) or by overnight courier (providing proof of delivery) or by telecopy or electronic mail (providing confirmation of transmission) or, if to a Holder, will be in writing by first class mail (postage prepaid).  All such notices, requests, claims, demands or other communications will be addressed as follows:

 

if to the Company, to:

 

Danaos Corporation

c/o Danaos Shipping Co., Ltd.

14 Akti Kondyli

185 45 Piraeus, Greece

Telephone No.:  + 30 210 419 6401

Fax No.: + 30 210 419 6489

Attention:  Chief Executive Officer

Email: ceo@danaos.com

 

With a copy to:

 

Morgan, Lewis & Bockius LLP

101 Park Avenue

New York, New York 10178

Telephone No.:  (212) 309-6050

Fax No.:  (212) 309-6001

Attention:  Stephen P. Farrell

Email: sfarrell@morganlewis.com

 

If to the Warrant Agent:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attention: Admin 8

Facsimile: (718) 765-8718

Email: admin8@amstock.com

 

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With a copy to:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attention: General Counsel

Facsimile: (718) 331-1852

Email: legalcontracts@amstock.com

 

If to a Holder, to the address of such Holder as it appears in the records of the Warrant Agent.

 

or such other address as the Company, the Warrant Agent or a Holder shall have specified to the other party in writing in accordance with Section 5.3.

 

5.4.       Miscellaneous.

 

(a)           This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and the respective successors, personal representatives and assigns of the parties hereto, whether so expressed or not.  This Agreement may not be assigned by any Holder without the prior written consent of the Company.  Notwithstanding the previous sentence, in connection with a sale or transfer of Registrable Securities, a Holder may assign its rights hereunder to the transferee, if following such transaction, the Warrants or Warrant Shares being sold or transferred, would constitute Registrable Securities in the hands of the transferee or the Warrant Shares issuable upon exercise of any Warrants being transferred would constitute Registrable Securities when issued to the transferee.  As a condition of such assignment, such Person shall execute an agreement in form and substance reasonably satisfactory to the Company, to become a party to this agreement and bound by its terms, and provide, in a timely fashion, the information required by Section 2.2 hereof.

 

(b)           This Agreement (with the documents referred to herein or delivered pursuant hereto) embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements.

 

(c)           THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF).

 

(d)           With respect to any suit, action or proceeding (“Proceeding”) arising out of or relating to this Agreement each of the parties hereto hereby irrevocably (i) submits to the exclusive jurisdiction of the state and federal courts of the State of New York (the “New York Courts”) and waives any objection to venue being laid in the New York Courts whether based on the grounds of forum non conveniens or otherwise and hereby agrees not to commence any such Proceeding other than before one of the New York Courts; provided,

 

12

 

however, that a party may commence any Proceeding in a court other than a New York Court solely for the purpose of enforcing an order or judgment issued by one of the New York Courts and (ii) consents to service of process in any Proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, or by recognized international express carrier or delivery service, in relation to the Company to American Stock Transfer & Trust Company, LLC,  6201 15th Avenue, Brooklyn, NY 11219, or such other location as the Company may designate upon notice from the Warrant Agent as the office or agency for such purpose or, in relation to a Stockholder, at its address referred to in Section 5.3; provided, however, that nothing herein shall affect the right of any party hereto to serve process in any other manner permitted by law.

 

(e)           WITH RESPECT TO ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

(f)            The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.  All section references are to this Agreement unless otherwise expressly provided.

 

(g)           This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

(h)           Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.

 

(i)            Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments, and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

13

 

5.5.       No Inconsistent Agreements.  The Company represents that the rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with any other agreements to which the Company is a party or by which it is bound.

 

14

 

IN WITNESS WHEREOF, the parties hereto have duly executed this agreement as of the date first above written.

 

 

	
DANAOS CORPORATION
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   John Coustas 
    	
 
    	
 
    
	
 
    	
Name:   John Coustas 
    	
 
    	
 
    
	
 
    	
Title:   President and Chief Executive Officer 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
THE ROYAL BANK OF SCOTLAND PLC
    	
 
    	
Number   of Warrants: 4,039,395
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
HSH NORDBANK AG
    	
 
    	
Number   of Warrants: 3,711,417
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
CREDIT SUISSE INTERNATIONAL
    	
 
    	
Number   of Warrants: 1,946,851
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EMPORIKI BANK OF GREECE S.A.
    	
 
    	
Number   of Warrants: 1,157,876
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    

 

 

	
DEUTSCHE BANK AKTIENGESELLSCHAFT
    	
 
    	
Number   of Warrants: 1,013,134
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
ABN AMRO BANK N.V.
    	
 
    	
Number   of Warrants: 745,193
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
DEUTSCHE SCHIFFSBANK
    	
 
    	
 
    
	
AKTIENGESELLSCHAFT
    	
 
    	
Number   of Warrants: 709,595
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
UBERIOR TRADING LIMITED
    	
 
    	
Number   of Warrants: 513,091
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
CITIBANK N.A. LONDON BRANCH
    	
 
    	
Number   of Warrants: 333,707
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    

 

 

	
PIRAEUS BANK S.A.
    	
 
    	
Number   of Warrants: 405,236
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
NATIONAL BANK OF GREECE S.A. 
    	
 
    	
Number   of Warrants: 232,102
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EFG EUROBANK ERGASIAS S.A.
    	
 
    	
Number   of Warrants: 77,009
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
COMMERZBANK AG, FILIALE LUXEMBOURG
    	
 
    	
Number   of Warrants: 74,870
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
AEGEAN   BALTIC BANK S.A.
    	
 
    	
Number   of Warrants: 40,524
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Authorised Signatory
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    	
Telephone   No.:
    	
 
    	
 
    

 

 

EXHIBIT A

 

UNREGISTERED HOLDERS

 

The following Holders will not be registering some or all of their Registrable Securities under the initial Shelf Registration Statement:

 

	
Name of Holder
    	
 
    	
Number of Unregistered
   Registrable Securities Held
    	
 
    	
Total Number of Registrable
   Securities Held
    	
 
    
	
HSH Nordbank AG
    	
 
    	
3,711,417
    	
 
    	
3,711,417
    	
 
    
	
Credit Suisse International
    	
 
    	
1,946,851
    	
 
    	
1,946,851
    	
 
    
	
Deutsche Schiffsbank Aktiengesellschaft 
    	
 
    	
709,595
    	
 
    	
709,595
    	
 
    
	
Uberior Trading Limited 
    	
 
    	
513,091
    	
 
    	
513,091
    	
 
    
	
Commerzbank AG, Filiale Luxembourg 
    	
 
    	
74,870
    	
 
    	
74,870
    	
 
    

 

HOLDERS ELECTING TO DEFER ISSUANCE

 

The following Holders have elected to defer the issuance of their respective Registrable Securities:

 

	
Name of Holder
    	
 
    	
Total Number of Deferred Registrable
   Securities
    	
 
    
	
HSH Nordbank AG 
    	
 
    	
3,711,417
    	
 
    
	
Commerzbank AG, Filiale Luxembourg 
    	
 
    	
74,870Exhibit 4.4

 

EXECUTION COPY

 

SUBSCRIPTION AGENT AGREEMENT

 

THIS SUBSCRIPTION AGENT AGREEMENT (“Agreement”) between CENTRAL PACIFIC FINANCIAL CORP., a Hawaii corporation (the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (“Wells Fargo”), is dated as of March 30, 2011.

 

1.                                       Appointment.

 

(a)                                  The Company will be distributing at no charge to its shareholders of record as of 5:00 p.m., Eastern time, on February 17, 2011 (the “Record Date”), transferable subscription rights (the “Rights”) to purchase up to an aggregate of two million (2,000,000) shares of the Company’s common stock, no par value per share (the “Common Stock”) in a rights offering (the “Rights Offering”).  Each shareholder will receive one Right for each share of Common Stock owned as of the Record Date.  Each Right entitles the holder thereof to purchase 1.3081 shares of Common Stock at a purchase price of $10 per share (the “Subscription Price”).  The term “Subscribed” shall mean submitted for purchase from the Company by a rights holder in accordance with the terms of the Rights Offering, and the term “Subscription” shall mean any such submission.

 

(b)                                 The Rights Offering will expire at 5:00 p.m., Eastern time, on the date specified in the Prospectus (as defined below) (the “Expiration Time”).

 

(c)                                  The Company filed a Registration Statement on Form S-1 (File No. 333-172479) relating to the Rights Offering with the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, on February 28, 2011 (the “Registration Statement”).  The terms of the Rights Offering will be more fully described in the Prospectus (the “Prospectus”) forming part of the Registration Statement at the time such Registration Statement is declared effective by the SEC.  A draft of the Prospectus has been previously to the Subscription Agent (as defined below).  The Company will provide the final Prospectus to the Subscription Agent as soon as it is available.  Wells Fargo, in its capacity as transfer agent, has provided the Company with a list of holders of Common Stock as of the Record Date (the “Record Stockholders List”).

 

(d)                                 The Company hereby appoints Wells Fargo to act as subscription agent (the “Subscription Agent”) for the Rights Offering in accordance with and subject to the following terms and conditions.

 

2.                                       Subscription Rights.

 

(a)                                  The Rights are evidenced by subscription rights certificates (the “Rights  Certificates”), a draft of which has been provided to the Subscription Agent and the final form of which will be filed as an exhibit to an amendment of the Registration Statement.  The Rights Certificates entitle the holders to subscribe, upon payment of the Subscription Price, for 1.3081 shares of Common Stock for each Right (the “Basic Subscription Right”).

 

(b)                                 The Rights Offering includes an over-subscription privilege entitling holders that timely and fully exercise their Basic Subscription Right to subscribe and pay the Subscription

 

 

Price for additional shares of Common Stock to the extent not subscribed by other rights holders (the “Over-Subscription Privilege”).  Reference is made to the Prospectus for a complete description of the Basic Subscription Right and the Over-Subscription Privilege and the proration thereof.

 

(c)                                  Fractional shares will not be issued. Fractional shares resulting from the exercise of the Basic Subscription Rights and the Over-Subscription Privileges on an aggregate basis as to any rights holder will be eliminated by rounding down to the nearest whole share.

 

3.                                       Duties of Subscription Agent.  As Subscription Agent, Wells Fargo is authorized and directed to:

 

(a)                                  Upon the Company’s instruction, issue the Rights Certificates in accordance with this Agreement in the names of the holders of the Common Stock of record or other nominees on the Record Date, keep such records as are necessary for the purpose of recording such issuance, and furnish a copy of such records to the Company.  The Rights Certificates may be signed on behalf of the Subscription Agent by the manual or facsimile signature of a Vice President or Assistant Vice President of the Subscription Agent, or by the manual signature of any of its other authorized officers.

 

(b)                                 If requested by the Company, print copies of all documents sent to Wells Fargo by the Company that are to be mailed by Wells Fargo to holders of Rights (listed in sections (3)(c)(i) and (ii) of this Agreement), including those documents to be mailed to the Company’s 401(k) participants (listed in section (3)(c)(iii) of this Agreement).

 

(c)                                  Promptly after the documents are finalized for mailing:

 

(i)                                     mail or cause to be mailed, by first class mail, or deliver (which delivery may be done electronically through the facilities of the Depository Trust Company (“DTC”) or otherwise) to each holder of Common Stock of record on the Record Date that is a resident of the United States, (1) a Rights Certificate evidencing the Rights to which such shareholder is entitled under the Rights Offering, (2) a copy of the Prospectus, (3) a suitable cover letter in the form supplied by the Company, (4) instructions as to the use of the Rights Certificate, (5) Notice of Guaranteed Delivery, (6) notice of tax information, and (7) a return envelope addressed to the Subscription Agent.

 

(ii)                                  mail or cause to be mailed, by first class mail, or deliver (which delivery may be done electronically through the facilities of DTC or otherwise) to each security dealer, commercial bank, trust company and other nominee that is a holder of Common Stock of record on the Record Date and that is a resident of the United States, (1) a form of letter that may be sent to their clients for whose accounts they hold shares of Common Stock registered in their name or the name of their nominee, (2) a Beneficial Owner Election Form, and (3) a Nominee Holder Certification, in addition to the mailing or delivery of the documents listed in paragraph (3)(c)(i) above.

 

(iii)                               if requested by the Company, mail or cause to be mailed, by first class mail, or deliver to each holder of Common Stock on the Record Date through the Company’s 401(k) plan, (1) a copy of the Prospectus, (2) a suitable cover letter in the form supplied by

 

2

 

Vanguard, (3) a Q&A letter explaining the election for 401(k) plan participants to participate in the Rights Offering, (4) a Rights Offering Election Form, and (5) a return envelope addressed to the 401(k) tabulating agent.  A list of 401(k) plan participants and addresses will be provided to Wells Fargo from Vanguard at least two (2) business days prior to the expected mailing date.

 

(d)                                 Mail or cause to be mailed, by first class mail, or deliver (which delivery may be done electronically through the facilities of DTC or otherwise) to each assignee or transferee of Rights upon receiving appropriate documents to register the assignment or transfer thereof the documents listed in section 3(c)(i) of this Agreement. All Rights Certificates issued upon any registration of transfer or exchange of Rights Certificates shall be the valid obligations of the Company, evidencing the same obligations, and entitled to the same benefits under this Agreement, as the Rights Certificates surrendered for such registration of transfer or exchange.

 

(e)                                  Accept Subscriptions upon the due exercise (including payment of the Subscription Price) on or prior to the Expiration Time of Rights in accordance with the terms of the Rights Certificates and the Rights Offering.

 

(f)                                    Subject to the next sentence, accept Subscriptions from shareholders whose Rights Certificates are alleged to have been lost, stolen or destroyed upon receipt by Wells Fargo of an affidavit of theft, loss or destruction and a bond of indemnity in form and substance reasonably satisfactory to Wells Fargo, accompanied by payment of the Subscription Price for the total number of Rights Subscribed for.  Upon receipt of such affidavit and bond of indemnity and compliance with any other applicable requirements, stop orders shall be placed on said Rights Certificates and Wells Fargo shall withhold delivery of the Rights Subscribed for until after the Rights Certificates have expired and it has been determined that the Rights evidenced by the Rights Certificates have not otherwise been purported to have been exercised or otherwise surrendered.

 

(g)                                 Accept Subscriptions, without further authorization or direction from the Company, without procuring supporting legal papers or other proof of authority to sign (including without limitation proof of appointment of a fiduciary or other person acting in a representative capacity), and without signatures of co-fiduciaries, co-representatives or any other person:

 

(i)                                     if the Rights Certificate is registered in the name of a fiduciary and is executed by, and the shares of Common Stock are to be issued in the name of, such fiduciary;

 

(ii)                                  if the Rights Certificate is registered in the name of a corporation or other entity and is executed by a person in a manner which appears or purports to be done in the capacity of an officer, or agent thereof, provided the shares of Common Stock are to be issued in the name of such corporation or entity; or

 

(iii)                               if the Rights Certificate is registered in the name of an individual and is executed by a person purporting to act as such individual’s executor, administrator or personal representative, provided, the shares of Common Stock are to be registered in the name of the subscriber as executor or administrator of the estate of the deceased registered holder and there is no evidence indicating the subscriber is not the duly authorized representative that he purports to

 

3

 

be.  The signature of the person purporting to act as such individual’s executor, administrator or personal representative must be Medallion Signature Guaranteed.

 

(h)                                 Accept Subscriptions not accompanied by Rights Certificates if submitted by a broker, commercial bank or trust company that held the Rights in street name (electronically through the facilities of DTC) having an office in the United States and accompanied by proper payment for the total number of Rights Subscribed for.

 

(i)                                     Refer to the Company, for specific instructions as to acceptance or rejection, Subscriptions received after the Expiration Time, Subscriptions not authorized to be accepted, Subscriptions purported to be made by holders of Rights that are not residents of the United States, and Subscriptions otherwise failing to comply with the terms and conditions of the Rights Certificates and the Rights Offering.

 

4.                                       Acceptance of Subscriptions.  Upon acceptance of a Subscription, Wells Fargo shall from time to time during the Rights Offering:

 

(a)                                  Hold all monies received in a dedicated, non-interest bearing account for the benefit of the Company.

 

(b)                                 Advise the Company weekly by email transmission and confirm by facsimile transmission to the attention of Glenn K.C. Ching (the “Company Representative”) as to the total number of shares of Common Stock Subscribed for and the amount of funds received, with cumulative totals for each; and in addition advise the Company Representative, by email transmission and confirmed by facsimile transmission, of the amount of funds received identified in accordance with (a) above, deposited, available or transferred in accordance with (a) above, with cumulative totals; and

 

(c)                                  As promptly as possible but in any event on or before 3:30 p.m., Eastern time, on the first full business day following the Expiration Time, advise the Company Representative in accordance with (b) above of the number of shares Subscribed for and the amount of funds received.

 

(d)                                 As promptly as possible but in any event on or before 3:30 p.m., Eastern time, on the first full business day following the Expiration Time, advise the Company Representative of the number of shares subscribed for by each director and officer of the Company listed on a schedule previously provided to the Subscription Agent using such individual’s registered account with Wells Fargo and as promptly as possible but in any event on or before 3:30 p.m., Eastern time, on the first full business day following the date of issuance, advise the Company Representative of the number of shares issued to each such individual.

 

5.                                       Completion of Rights Offering. Promptly following the Expiration Time, Wells Fargo shall:

 

(a)                                  distribute to the Company the funds from exercise of the Basic Subscription Rights and Over-Subscription Privilege, and

 

4

 

(b)                                 shall issue (in physical form, by DRS book-entry or electronically through the facilities of DTC, in each case in a manner approved by the Company) shares of Common Stock issuable with respect to Subscriptions that have been accepted.  Wells Fargo will not be obligated to calculate or pay interest to any holder or any other party claiming through a holder or otherwise.

 

6.                                       Procedure for Discrepancies.  Wells Fargo shall follow its regular procedures to attempt to reconcile any discrepancies between the number of shares of Common Stock that any Rights Certificate may indicate are to be issued to a rights holder and the number that the Record Shareholders List indicates may be issued to such rights holder.  In any instance where Wells Fargo cannot reconcile such discrepancies by following such procedures, Wells Fargo will consult with the Company for instructions as to the number of shares of Common Stock, if any, it is authorized to issue.  In the absence of such instructions, Wells Fargo is authorized not to issue any shares of Common Stock to such rights holder.

 

7.                                       Procedure for Deficient Items.  Wells Fargo shall examine the Rights Certificates received by it as Subscription Agent to ascertain whether they appear to have been properly completed and executed.  In the event Wells Fargo determines that any Rights Certificate does not appear to have been properly completed or executed, or where any Rights Certificate does not appear to be in proper form for Subscription, or any other irregularity in connection with the Subscription appears to exist, Wells Fargo shall follow, where possible, its regular procedures to attempt to cause such irregularity to be corrected.  Wells Fargo is not authorized to waive any irregularity in connection with the Subscription, unless Wells Fargo shall have received from the Company instructions given by an authorized officer of the Company, that any irregularity in such Rights Certificate has been cured or waived and that such Subscription has been accepted by the Company.  If any such irregularity is neither corrected nor waived, Wells Fargo will return to the subscribing rights holder (at its option by either first class mail under a blanket surety bond or insurance protecting Wells Fargo and the Company from losses or liabilities arising out of the non-receipt or nondelivery of Rights Certificates or by registered mail insured separately for the value of such Rights Certificates) to such rights holder’s address as set forth in the Subscription any Rights Certificates surrendered in connection therewith and any other documents received with such Rights Certificates, and a letter of notice to be furnished by the Company explaining the reasons for the return of the Rights Certificates and other documents.

 

8.                                       Date/Time Stamp.  Each document received by Wells Fargo relating to its duties hereunder, including all subscription documents, shall be dated and time stamped when received.

 

9.                                       Transfer Procedures.  If shares of Common Stock are to be issued by Wells Fargo to a person other than the person in whose name a surrendered Rights Certificate is registered, Wells Fargo shall issue no shares until the signature on the Rights Certificate so surrendered has been Medallion Signature Guaranteed.

 

10.                                 Tax Reporting.  Should any issue arise regarding federal income tax reporting or withholding, Wells Fargo shall take such action as the Company reasonably instructs in writing.

 

11.                                 Termination.  The Company may terminate this Agreement at any time by so notifying Wells Fargo in writing.  Wells Fargo may terminate this Agreement upon 60 days’ prior written

 

5

 

notice to the Company.  Upon any such termination, Wells Fargo shall be relieved and discharged of any further responsibilities with respect to its duties hereunder.  Upon payment of all Wells Fargo’s outstanding fees and expenses, Wells Fargo shall forward to the Company or its designee promptly any Rights Certificate or other document relating to Wells Fargo’s duties hereunder that Wells Fargo may receive after its appointment has so terminated.  Sections 12, 13, 14 and 19 of this Agreement shall survive any termination of this Agreement.

 

12.                                 Authorizations and Protections.  As agent for the Company, Wells Fargo:

 

(a)                                  shall have no duties or obligations other than those specifically set forth herein or in the Prospectus or as may subsequently be agreed to in writing by Wells Fargo and the Company;

 

(b)                                 shall be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of any Rights Certificates surrendered to Wells Fargo hereunder or shares of Common Stock issued in exchange therefor, and will not be required to or be responsible for and will make no representations as to, the validity, sufficiency, value or genuineness of the Rights Offering;

 

(c)                                  shall not be obligated to take any legal action hereunder; if, however, Wells Fargo determines to take any legal action hereunder, and where the taking of such action might, in Wells Fargo’s reasonable judgment, subject or expose it to any expense or liability, Wells Fargo shall not be required to act unless it shall have been furnished with an indemnity reasonably satisfactory to it;

 

(d)                                 may rely on and shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter, telegram, telex, facsimile transmission or other document or security delivered to Wells Fargo and believed by it to be genuine and to have been signed by the proper party or parties;

 

(e)                                  shall not be liable or responsible for any statement contained in the Prospectus or any other documents relating thereto;

 

(f)                                    shall not be liable or responsible for any failure on the part of the Company to comply with any of its covenants and obligations relating to the Rights Offering, including without limitation obligations under applicable securities laws;

 

(g)                                 may rely on and shall be fully authorized and protected in acting or failing to act upon the written, telephonic or oral instructions of officers of the Company with respect to any matter relating to Wells Fargo acting as Subscription Agent covered by this Agreement (or supplementing or qualifying any such actions);

 

(h)                                 may consult with counsel satisfactory to Wells Fargo, including internal counsel, and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered, or omitted by Wells Fargo hereunder in good faith and in reliance upon the advice of such counsel; and

 

6

 

(i)                                     are not authorized, and shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person.

 

Notwithstanding the foregoing, Wells Fargo shall be required to carry out its responsibilities under this Agreement diligently and shall be responsible for acts or omissions resulting from its negligence or intentional misconduct.

 

13.                                 Indemnification.  The Company agrees to indemnify Wells Fargo for, and hold it harmless from and against, any loss, liability, claim or expense (“Loss”) arising out of or in connection with Wells Fargo’s performance of its duties under this Agreement or this appointment, including the costs and expenses of defending itself against any Loss or enforcing this Agreement, except to the extent that such Loss shall have been determined by a court of competent jurisdiction to be a result of Wells Fargo’s negligence or intentional misconduct.

 

14.                                 Limitation of Liability.

 

(a)                                  In the absence of negligence or intentional misconduct on its part, Wells Fargo shall not be liable for any action taken, suffered, or omitted by it or for any error of judgment made by it in the performance of its duties under this Agreement.  Anything in this Agreement to the contrary notwithstanding, in no event shall Wells Fargo be liable for special, indirect, incidental or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if Wells Fargo has been advised of the likelihood of such damages and regardless of the form of action.

 

(b)                                 In the event any question or dispute arises with respect to the proper interpretation of this Agreement or Wells Fargo’s duties hereunder or the rights of the Company or of any holders surrendering Rights Certificates for shares of Common Stock pursuant to the Rights Offering, Wells Fargo shall not be required to act and shall not be held liable or responsible for refusing to act until the question or dispute has been judicially or mutually settled (and Wells Fargo may, if it deems it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on all parties interested in the matter which is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory to Wells Fargo and executed by the Company and each such shareholder and party.  In addition, Wells Fargo may require for such purpose, but shall not be obligated to require, the execution of such written settlement by all the rights holders and all other parties that may have an interest in the settlement.

 

15.                                 Representations, Warranties and Covenants.  The Company represents, warrants and covenants that (a) it is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, (b) the making and consummation of the Rights Offering and the execution, delivery and performance of all transactions contemplated thereby (including without limitation this Agreement) have been duly authorized by all necessary corporate action and will not result in a breach of or constitute a default under the articles of incorporation or bylaws of the Company or any indenture, agreement or instrument to which either is a party or is bound, (c) this Agreement has been duly executed and delivered by the Company and constitutes a legal, valid, binding obligation of the Company, enforceable against the Company in accordance with

 

7

 

its terms and (d) the Rights Offering will comply in all material respects with all material applicable requirements of law.

 

16.                                 Notices.  All notices, demands and other communications given pursuant to the terms and provisions hereof shall be in writing, shall (except as provided for in Section 18 hereof) be deemed effective on the date of receipt, and may be sent by facsimile, overnight delivery services, or by certified or registered mail, return receipt requested to:

 

If to the Company:

 

Central Pacific Financial Corp.
 220 South King Street, 22nd Floor
 Honolulu, Hawaii 96813
 Attn:  Glenn K.C. Ching
 Telephone:  (808) 544-3531
 Fax:  (808) 532-5165

 

with a copy to:

 

Alison S. Ressler 
 Sullivan & Cromwell LLP
 1888 Century Park East, Suite 2100
 Los Angeles, California 90067
 Telephone:  (310) 712-6600
 Fax:  (310) 712-8800

 

If to Wells Fargo:

 

Wells Fargo Bank, N.A.
 Shareowner Services 
 Attn: Account Management 
 161 N. Concord Exchange 
 South St. Paul, MN 55075
 Telephone:  (800) 689-8788
 Fax:  (651) 450-4078

 

17.                                 Specimen Signatures.  Set forth in Exhibit 1 hereto is a list of the names and specimen signatures of the persons authorized to act for the Company under this Agreement.  The Secretary of the Company shall, from time to time, certify to Wells Fargo the names and signatures of any other persons authorized to act for the Company, as the case may be, under this Agreement.

 

18.                                 Instructions.  Any instructions given to Wells Fargo orally, as permitted by any provision of this Agreement, shall, upon the request of Wells Fargo, be confirmed in writing by the Company (which for these purposes only may be undertaken by e-mail transmission) as soon as practicable.  Wells Fargo shall not be liable or responsible and shall be fully authorized and protected for acting, or failing to act, in accordance with any oral instructions which do not conform with the written confirmation received in accordance with this Section.

 

8

 

19.                                 Fees.  Whether or not any Rights Certificates are surrendered to Wells Fargo, for its services as Subscription Agent hereunder, the Company shall pay to Wells Fargo those fees set forth on a schedule previously provided to the Company, together with reimbursement for reasonable, documented out-of-pocket expenses.  All amounts owed to Wells Fargo hereunder are due upon receipt of the invoice.

 

20.                                 Force Majeure.  Wells Fargo shall not be liable for any failure or delay arising out of conditions beyond its reasonable control including, but not limited to, work stoppages, fires, civil disobedience, riots, rebellions, storms, electrical, mechanical, computer or communications facilities failures, acts of God or similar occurrences.

 

21.                                 Miscellaneous.

 

(a)                                  This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to conflict of laws, rules or principles.

 

(b)                                 No provision of this Agreement may be amended, modified or waived, except in writing signed by both of the parties hereto.

 

(c)                                  In the event that any claim of inconsistency between this Agreement and the terms of the Rights Offering, as they may from time to time be amended, arises the terms of the Rights Offering shall control, except with respect to Wells Fargo’s duties, liabilities and rights, including without limitation compensation and indemnification, which shall be controlled by the terms of this Agreement.

 

(d)                                 If any provision of this Agreement shall be held illegal, invalid, or unenforceable by any court, this Agreement shall be construed and enforced as if such provision had not been contained herein and shall be deemed an Agreement among the parties hereto to the full extent permitted by applicable law.

 

(e)                                  This Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the respective successors and assigns of the parties hereto.

 

(f)                                    This Agreement may not be assigned by any party without the prior written consent of the other party.

 

(g)                                 This Agreement may be executed in counterparts, each of which, when taken together, shall constitute one and the same agreement, and each of which may be delivered by the parties by facsimile or other electronic transmission, which shall not impair the validity of such counterparts.

 

(Signature page follows)

 

9

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers as of the day and year above written.

 

	
 
    	
CENTRAL   PACIFIC FINANCIAL CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Glenn K.C. Ching
    
	
 
    	
 
    	
Name:
    	
Glenn   K.C. Ching
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and General Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Subscription Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Suzanne M. Swits
    
	
 
    	
 
    	
Name:
    	
Suzanne   M. Swits
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

Exhibit 1: List of Authorized Representatives

 

 

EXHIBIT 1

 

List of Authorized Representatives

 

	
Name
    	
 
    	
Title
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Glenn   K.C. Ching
    	
 
    	
Senior   Vice President and General Counsel
    	
 
    	
/s/   Glenn K.C. Ching
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
David   Morimoto
    	
 
    	
Senior   Vice President and Treasurer
    	
 
    	
/s/   David Morimoto
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Catherine   Ngo
    	
 
    	
Executive   Vice President and Chief Administrative Officer
    	
 
    	
/s/   Catherine Ngo
    

 

11

 

FEE SCHEDULE

 

CENTRAL PACIFIC FINANCIAL CORP COMMON STOCK

 

	
ADMINISTRATION, SET-UP & MAINTENANCE FEES
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
MAILING
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TRANSACTION PROCESSING
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXPENSES
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TOTAL ESTIMATED FEES AND   EXPENSES
    	
 
    	
$
    	
83,000.00

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