Document:

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Exhibit 10.35
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Contract No. MA/CCF-316
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FORM OF CAPITAL CONSTRUCTION FUND AGREEMENT
WITH
MATSON NAVIGATION COMPANY
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This CAPITAL CONSTRUCTION FUND AGREEMENT (“Agreement”), made on the date hereinafter set forth, by and between the UNITED STATES OF AMERICA, represented by the Assistant Secretary of Commerce for Maritime Affairs (“Assistant Secretary”), and Matson Navigation Company, a corporation organized and existing under the laws of the State of California (“Party”), a citizen of the United States of America.
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W H E R E A S:
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1.The Party has applied for the establishment of a Capital Construction Fund (“Fund”) under section 607 of the Merchant Marine Act, 1936, as amended (“Act”);
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2.The Party is the owner or lessee or has contracted for the construction of one or more eligible vessels as defined in section 607(k) of the Act, which vessels are listed in Schedule A hereof;
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3.The Party has a program for the construction or acquisition of qualified agreement vessels as defined in section 607(k) of the Act, which program is described in Schedule B hereof;
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4.The Assistant Secretary and the Party desire to enter into an Agreement for the purpose of providing replacement vessels, additional
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vessels, or reconstructed vessels, built in the United States and documented under the laws of the United States for operation in the United States foreign, Great Lakes, or noncontiguous domestic trade;
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5.The Assistant Secretary has determined that the Party qualifies for an Agreement under the Act; and
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6.The Assistant Secretary has authorized the award of an Agreement upon the terms and conditions set forth herein subject to the Act, as it may be amended from time to time, and such rules and regulations as shall be prescribed by the Secretary of Commerce or his delegate, either alone or jointly with the Secretary of the Treasury, as necessary to carry out the powers, duties, and functions vested in them by the Act (“rules and regulations”).
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NOW, THEREFORE, in consideration of the premises the Assistant Secretary and the Party hereby agree as follows:
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1.Establishment of a Fund
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(A)A Fund is hereby established for the purposes set forth in Article 2 hereof, pursuant to such terms and conditions as shall be prescribed in this Agreement, the Act, or the rules and regulations.
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(B)The Fund shall be established in the depositories listed in Schedule C hereof.
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2.Purpose of the Fund
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The Fund established hereunder shall be utilized to provide for replacement vessels, additional vessels, or reconstructed vessels, built in the United States and documented under the laws of the United States for operation in the United States foreign, Great Lakes, or noncontiguous domestic trade, and to provide for qualified withdrawals to achieve the program set forth in Schedule B hereof.
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3.Term of the Agreement
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This Agreement shall be effective on the date of execution by the Assistant Secretary and shall continue until terminated under Article 4.
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4.Termination of Agreement
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(A)This Agreement may be terminated at any time under any of the following circumstances:
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(1)Upon written mutual agreement by the parties;
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(2)Upon written notice by the Party that a change has been made in the rules and regulations which would have a substantial effect upon the rights or obligations of the Party.
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(B)This Agreement shall terminate upon completion of the program as set forth in Schedule B hereof.
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(C)Upon termination of this Agreement pursuant to paragraphs (A) and/or (B) hereof all amounts remaining in the Fund shall be treated as if withdrawn in a nonqualified withdrawal (as that term is defined in the Act and the rules and regulations) on the date of termination of this Agreement.
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5.Deposits to be made into the Fund
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(A)Subject to any restrictions contained in the Act, the rules and regulations, or this Agreement, the Party may deposit, for each taxable year to which this Agreement applies, amounts representing:
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(1)Taxable income attributable to the operation of the vessels listed in Schedule A or B hereof;
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(2)The depreciation allowable under section 167 of the Internal Revenue Code of 1954 on the vessels listed in Schedule A or B hereof;
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(3)The net proceeds from the sale or other disposition of any of the vessels listed in Schedule A or B hereof;
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(4)The net proceeds from insurance or indemnity attributable to the vessels listed in Schedule A or B hereof;
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(B)The Party shall deposit for each taxable year to which this Agreement applies:
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(1)All receipts from the investment or reinvestment of amounts held in the Fund, except that the Party shall not be permitted to deposit more than is necessary to complete its program set out in Schedule B hereof; and
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(2)The net proceeds from the mortgage of any vessel listed in Schedule B hereof for which qualified withdrawals from the Fund have been made.
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(C)Notwithstanding anything in paragraphs (A) or (B) hereof to the contrary, the Party shall make the minimum deposits set forth in Schedule D hereof at the time and in such amounts as may be set forth therein. The Party specifically agrees to deposit one hundred percent of allowable taxable income attributable to the operation of agreement vessels, in order to meet its obligations under this paragraph.
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(D)In the event that any leased vessel listed in Schedule A hereof is included in another capital construction fund agreement, the maximum amount of depreciation which the Party may deposit in respect to that vessel shall be calculated by using the allowable percentage of the depreciation ceiling listed for that vessel in Schedule A hereof.
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6.Withdrawals from the Fund
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(A)The Party may make such qualified withdrawals (as that term is defined in the Act and the rules and regulations) as shall be necessary to fulfill the obligations set forth in Schedule B hereof.  Any such qualified withdrawal may be made without the consent of the Assistant Secretary, except as required by the rules and regulations.
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(B)Any other withdrawal from the Fund shall be made only upon the prior written consent of the Assistant Secretary, as required by the rules and regulations.
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7.Investment of the Fund
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(A)The Party, at its discretion, may invest assets held in the Fund in accordance with the Act and the rules and regulations.
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(B)The Party agrees, when investing assets held in the Fund, to make such investments as will insure that sufficient cash is available at the time qualified withdrawals are required in accordance with the program described in Schedule B hereof.
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8.Pledges, Assignments and Transfers
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(A)The Party agrees not to assign, pledge or otherwise encumber, either directly or indirectly or through any reorganization, merger, or consolidation, all or any part of this Agreement, the Fund, or any assets in the Fund without the prior written consent of the Assistant Secretary; provided, however, the Party may transfer the assets of the Fund, in whole or in part, to an investment trustee, as provided in the rules and regulations.
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(B)The Party shall not obligate any assets in the Fund as a compensating balance.
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(C)The Party may not sell, transfer, or otherwise dispose of any vessel, or part thereof, described in Schedule B hereof without the prior written consent of the Assistant Secretary.
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9.Records and Reports
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(A)The Party and each affiliate, domestic agent, subsidiary or holding company connected with, or directly or indirectly controlling or controlled by the Party shall keep its books, records, and accounts relating to the maintenance, operation, and servicing of the vessel(s) and/or service(s) covered by this Agreement in such form as may be prescribed by the Assistant Secretary under the rules and regulations.
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(B)The Assistant Secretary agrees not to require the duplication of books, records and accounts required to be kept in some other form by the Interstate Commerce Commission or the Secretary of the Treasury, so long as the information required in paragraph (A) hereof is made available to the Assistant Secretary.
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(C)The Party agrees to file, upon notice from the Assistant Secretary, balance sheets, profit and loss statements, and such other statements of financial operations, special reports, charters, ships’ logs, memoranda of facts and transactions, as in the opinion of the Assistant Secretary may affect the Party’s performance under this Agreement.
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(D)The Assistant Secretary may require by regulation that any of such statements, reports and memoranda shall be certified by independent certified public accountants acceptable to the Assistant Secretary.
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(E)The Assistant Secretary may require the Party to establish and maintain systems of control of expenses and revenues in connection with the operation of the agreement vessel(s).
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(F)The Party agrees to submit promptly to the Assistant Secretary any contract executed in connection with the program described in Schedule B hereof.
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(G)The Assistant Secretary is hereby authorized to examine and audit the books, records, and accounts of all persons referred to in this Article whenever he may deem it necessary or desirable.
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10.Modification and Amendment
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This Agreement may be modified or amended at any time by mutual written consent.
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11.Incorporation of Schedules
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The attached Schedules A, B, C, and D are incorporated into and made a part of this Agreement.
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12.Liquidated Damages
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(A)In the event that the Party operates any qualified agreement vessel described in Schedule B hereof in geographic trades other than those permitted by section 607 of the Act, this Agreement, and/or the rules and regulations, the Party shall pay to the United States an amount of liquidated damages for each day of such impermissible geographic trading which shall constitute the time value of the deferral of Federal income tax which the Party has received.  The amount shall be calculated as follows:
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(1)For each vessel constructed or acquired within one year of final delivery from the shipyard with the aid of qualified withdrawals the daily rate shall be $0.07523 for each $1,000 which has been or may be withdrawn from the Fund pursuant to Schedule B hereof.
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(2)For each vessel reconstructed or acquired more than one year after final delivery from the shipyard after construction with the aid of qualified withdrawals the daily rate shall be $0.04763 for each $1,000 which has been or may be withdrawn from the Fund pursuant to Schedule B hereof.
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(3)For each vessel included in Schedule B hereof as a qualified agreement vessel in regard to which qualified withdrawals from the Fund have been made to pay existing indebtedness, the daily rate shall be $0.04763  for each $1,000 which has been or may be withdrawn from the Fund pursuant to Schedule B hereof, provided, however, that if the vessel was more than 15 years old on the date of the first qualified withdrawal, the daily rate shall be $0.03857 for each $1,000 which has been or may be withdrawn from the Fund pursuant to Schedule B hereof.
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(B)The Party agrees to pay the daily rate of liquidated damages to the Assistant Secretary, for deposit in the Treasury of the United States, within the time limits provided for in the rules and regulations.
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(C)Nothing in this Article shall in any way be construed to diminish or waive any of the Assistant Secretary’s other remedies for breach under the Act, the Agreement, or the rules and regulations.
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(D)Notwithstanding the fact that the Agreement may be terminated pursuant to the provisions of Article 4 hereof, or otherwise, the provisions of this Article 12 shall continue in effect as follows:
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(1)In the case of a vessel constructed or acquired within one year of final delivery from the shipyard after construction with the aid of qualified withdrawals, for a period of twenty (20) years from the date of such vessel’s final delivery;
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(2)In the case of a vessel reconstructed or acquired more than one year after final delivery from the shipyard after construction with the aid of qualified withdrawals, for a period of ten (10) years from the date of such vessel’s final delivery from the shipyard after reconstruction or the date of such vessel’s acquisition;  and
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(3)In the case of a vessel included in Schedule B hereof as a qualified agreement vessel in regard to which qualified withdrawals from the Fund have been made to pay existing indebtedness, for a period of ten (10) years from the date of the first qualified withdrawal in
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regard to such vessel, provided, however, that if such vessel was more than fifteen (15) years old on the date of the first qualified withdrawal in regard thereto, such conditions shall continue for a period of five (5) years in regard to such vessel.
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13.Warranties and Representations by the Party
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The Party hereby warrants and represents that:
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(A)The Party is a citizen of the United States within the meaning of section 2 of the Shipping Act, 1916, as amended, and will continue to be so for the term of this Agreement. The Party agrees that, each year, within 30 days after the annual meeting of its stockholders, it shall file a supplemental affidavit as evidence of its continuing United States citizenship, provided that, any changes in data last furnished with respect to officers, directors, and stockholders holding five percent or more of the issued and outstanding stock of each class or series which would result in a loss of the Party’s status as a United States citizen shall be promptly reported to the Assistant Secretary.
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(B)The Party owns, is the lessee, or has contracted for the construction of one or more eligible vessels (within the meaning of section 607(k) of the Act) as listed is Schedule A hereof.
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(C)The qualified vessels described in Schedule B hereof:
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(1)Were or will be constructed or reconstructed in the United States, except as provided in the Act and the rules and regulations;
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(2)Are or will be documented under the laws of the United States and will continue to remain so documented; and
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(3)Will be operated in the foreign, Great Lakes or noncontiguous domestic trade of the United States within the meaning of the Act and the rules and regulations.
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(D)The Party will meet its deposit obligations as agreed upon in Article 5 of this Agreement.
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(E)The Party will promptly inform the Assistant Secretary, in writing, of any change in circumstances which would tend to adversely affect the ability of the Party to carry out its obligations under the Agreement.
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(F)The Party will faithfully conform to all rules and regulations governing the Agreement and the Fund.
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(G)Nothing of monetary value has been improperly given, promised, or implied for entering into this Agreement. The Party further warrants that no improper personal, political or other activities have been used or attempted in an effort to influence the outcome of the discussions or negotiations leading to the award of this Agreement. Breach of this warranty shall constitute an event of default for which the Assistant Secretary shall have the right, notwithstanding Article 4, to terminate this Agreement without liability to the United States.
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14.Default in Obligations
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(A)If the Assistant Secretary determines that any substantial obligation under this Agreement is not being fulfilled by the Party, he may, under the rules and regulations and after the Party has been given notice and an opportunity to be heard, declare a breach and treat the entire Fund, or any portion thereof, as an amount withdrawn in a non-qualified withdrawal.
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(B)The Assistant Secretary shall provide an opportunity for the Party to cure a breach declared pursuant to Paragraph (A) of this Article 13.
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(C)Events of breach by the Party shall include, but shall not be limited to:
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(1)Failure in any respect to use due diligence in performing the program set forth in Schedule B hereof;
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(2)Obligating the assets in the Fund as a compensating balance;
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(3)Failure to make deposits required in Schedule D hereof;
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(4)Failure to secure written permission from the Assistant Secretary when such permission is required by the rules and regulations;
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(5)Failure to submit reports and/or records on a timely basis as provided in Article 9 hereof;
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(6)Any material misrepresentation made by the Party or any failure by the Party to disclose material information, in connection with this Agreement whether before or after execution hereof and whether made in an application, report, affidavit, or otherwise; or
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(7)Failure by the Party to comply with any provisions of section 607 of the Act, the rules and regulations, or this Agreement.
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(15).Extension of Federal Income Tax Benefits
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The Assistant Secretary agrees that the Federal income tax benefits provided in the Act and the rules and regulations shall be available to the Party if the Party shall carry out its obligations under this Agreement.
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	UNITED STATES OF AMERICA

	 
	​
	ASSISTANT SECRETARY OF COMMERCE

	ATTEST:
	​
	FOR MARITIME AFFAIRS

	 
	​
	 

	By:
		​
	By:
	
		Secretary
	​
		Contracting Officer

	 
	​
	 

	 
	​
	 
	 

	 
	​
	 
	(Date of Execution)

	 
	​
	 

	 
	​
	 

	 
	​
	 

	ATTEST:
	​
	MATSON NAVIGATION COMPANY

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
		Assistant Secretary
	​
		Vice President

	 
	​
	 

	 
	​
	 

	Approved as to form:
	​
	 

	 
	​
	 

	 
	​
	 

	Assistant General Counsel
	​
	 

	Maritime Administration
	​
	 

​
​

​

​

	

	

	 
	COUNTERPART III

	 
	 

	 
	Addendum No. 2

	 
	Contract No.  MA/CCF-316

​
FORM OF ADDENDUM TO
MARITIME ADMINISTRATION
CAPITAL CONSTRUCTION FUND AGREEMENT
WITH
MATSON NAVIGATION COMPANY
​
THIS AGREEMENT, made by and between the Secretary of Commerce (the “Secretary”) and Matson Navigation Company (the “Party”), a citizen of the United States, as an addendum to that certain Capital Construction Fund Agreement, Contract No. MA/CCF-316 (the “Agreement”),
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WITNESSETH:
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WHEREAS:
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l.The parties hereto entered into the Agreement on September 21, 1976, under section 607 of the Merchant Marine Act, l936, as amended (the “Act”);
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2.A new agreement form was published in the Federal Register on August 30, 1977;
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3.The parties hereto desire to amend the Agreement to conform with the new agreement form; and
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4.The parties hereto have agreed to amend the Agreement in the manner hereinafter set forth.
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NOW, THEREFORE, in consideration of the premises, the Secretary and the Party agree as follows:
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I.Effective October 28, 1977, the Agreement is amended in the following respects:
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A.Article 5 of the Agreement is amended by changing the last sentence of Paragraph (C) thereof to read as follows:
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“The Party specifically agrees to deposit up to one hundred percent of allowable taxable income attributable to the operation of agreement vessels in order to meet its obligations under this paragraph.”
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B.Article 12 of the Agreement is amended by deleting from Paragraph (A) thereof the subparagraphs numbered (l), (2), and (3) and by changing the last sentence of Paragraph (A) to read as follows:
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“The amount shall be calculated in accordance with the rules and regulations.”
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C.Article 14 of the Agreement is amended by changing Paragraph (B) thereof to read as follows:
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“(B)  The Assistant Secretary shall provide an opportunity for the Party to cure a breach declared pursuant to Paragraph (A) of this Article 14.”
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II.Except as herein otherwise expressly provided, the Agreement, as hereto-fore amended, shall remain in full force and effect.
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IN WITNESS WHEREOF, the Secretary and the Party have executed this addendum in quadruplicate, effective as of the date(s) indicated herein and actually on the 16th day of December 1977.
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	​

	 
	​
	UNITED STATES OF AMERICA

	 
	​
	SECRETARY OF COMMERCE 

	​
	​
	ASSISTANT SECRETARY OF COMMERCE

	ATTEST:
	​
	FOR MARITIME AFFAIRS

	 
	​
	 

	By:
		​
	By:
	
		Secretary
	​
		Contracting Officer

	 
	​
	 

	 
	​
	 

	 
	​
	 

	ATTEST:
	​
	MATSON NAVIGATION COMPANY

	 
	​
	 

	By:
		​
	By:
	
		Assistant Secretary
	​
	 
	Vice President and Treasurer

	 
	​
	 

	Approved as to form:
	​
	 

	 
	​
	 

	 
	​
	 

	Assistant General Counsel
	​
	 

	Maritime Administration
	​
	 

​
​

​

​

	

	

	 
	COUNTERPART III

	 
	 

	 
	Addendum No. 5

	 
	Contract No. MA/CCF-316

​
FORM OF ADDENDUM TO
MARITIME ADMINISTRATION
CAPITAL CONSTRUCTION FUND AGREEMENT
WITH
MATSON NAVIGATION COMPANY
​
THIS AGREEMENT, made by and between the Secretary of Commerce (the “Secretary”) and MATSON NAVIGATION COMPANY (the “Party”), a citizen of the United States, as an addendum to that certain Capital Construction Fund Agreement, Contract No. MA/CCF-316 (the “Agreement”).
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WITNESSETH:
​
WHEREAS:
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1.The parties hereto entered into the Agreement on September 21, 1976, under section 607 of the Merchant Marine Act, 1936, as amended (the “Act”); and
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2.The parties hereto desire to amend the Agreement in the manner hereinafter set forth.
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NOW, THEREFORE, in consideration of the premises, the Secretary and the Party agree as follows:
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I.Effective May 7, 1980, Article 4(B) of the Agreement is amended by inserting a comma in lieu of the period after the word “hereof” and by adding after the comma the words “unless otherwise mutually agreed by the parties.”
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II.Except as herein otherwise expressly provided, the Agreement, as heretofore amended, shall remain in full force and effect.
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IN WITNESS WHEREOF, the Secretary and the Party have executed this addendum in quadruplicate, effective as of the date(s) indicated and actually on the 15th day of August, 1980.
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	​

	

	

	

	 
	    
	​

	 
	​
	UNITED STATES OF AMERICA 

	 
	​
	SECRETARY OF COMMERCE

	​
	​
	ASSISTANT SECRETARY OF COMMERCE

	ATTEST:
	​
	FOR MARITIME AFFAIRS

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	Secretary
	​
	 
	Contracting Officer

	 
	​
	 

	 
	​
	 

	 
	​
	 

	ATTEST:
	​
	MATSON NAVIGATION COMPANY

	 
	 
	​
	 
	 

	 
	 
	​
	 
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Assistant Secretary
	​
	Title:
	Senior Vice President

	 
	(print or type)
	​
	 
	(print or type)

	 
	​
	 

	 
	​
	 

	Approved as to form:
	​
	 

	 
	​
	 

	 
	​
	 

	for Assistant General Counsel
	​
	 

	Maritime Administration
	​
	 

​
​

​

​

COUNTERPART III
​
	 
	 

	 
	Addendum No. 18

	 
	Contract No. MA/CCF-316

​
FORM OF ADDENDUM TO
MARITIME ADMINISTRATION
CAPITAL CONSTRUCTION FUND AGREEMENT
WITH
MATSON NAVIGATION COMPANY, INC.
​
This Addendum is made by and among the Maritime Administrator (the “Administrator”) and Matson Navigation Company, Inc. (individually “Matson”) and certain wholly-owned subsidiaries or sub-subsidiaries thereof, Matson Agencies, Inc., Matson Freight Agencies, Inc., Matson Freight Agencies (Eastern), Inc., Matson Intermodal System, Inc., Matson Services Company, Inc., and Matson Terminals, Inc. (Matson and such subsidiaries referred to collectively as the “Party”), each of which is a citizen of the United States, as an addendum to that certain Capital Construction Fund Agreement Contract No. MA/CCF-316  (the “Agreement”).
​
WHEREAS:
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1.The Administrator and Matson entered into the Agreement on September 21, 1976, under Section 607, Merchant Marine Act, 1936, as amended (the “Act”);
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2.The Administrator approved the addition of each of the subsidiaries to the Agreement on February 23, 1989;
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3.The Administrator on May 23, 1989 approved an amendment of the Agreement which changes from mandatory to permissible Matson’s deposit of the receipts from the investment or reinvestment of amounts held in the CCF, subject to the condition that Matson shall not be permitted to deposit more than necessary to complete its program objectives outlined in Schedule B; and
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4.The parties desire to amend the Agreement as set forth in this Addendum.
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NOW, THEREFORE, the Administrator and the Party agree as follows:
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I.Effective for Matson’s 1988 tax year, the agreement is amended as follows:
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A.Matson Agencies, Inc., Matson Freight Agencies, Inc., Matson Freight Agencies (Eastern), Inc., Matson Intermodal System, Inc., Matson Services Company, Inc. and Matson Terminals, Inc. are added as parties to the Agreement.
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B.Each of the parties added agrees to be bound by all the provisions of Contract No. MA/CCF-316, as heretofore amended, and the Act applicable thereto, and the rules and regulations issued pursuant to the Act.
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II.Effective May 23, 1989, the Agreement is amended as follows:
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A.Article 5, paragraph (A), item (4) is amended to change the period at the end of item (4) to a semicolon and to add the word “and”;
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B.Article 5, paragraph (A) is amended to add item (5) to read as follows:
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(5)The receipts from the investment or reinvestment of amounts held in the Fund, except that the Party shall not be permitted to deposit more than is necessary to complete its program set out in Schedule B hereof.
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2

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C.Article 5, paragraph (B) is amended to delete item (1) and to renumber the following item as item (1).
​
II.Except as herein otherwise expressly provided, the Agreement, as heretofore amended, shall remain in full force and effect.
​
IN WITNESS WHEREOF, the Parties have executed this Addendum No. 18 in four counterparts, effective as of the dates specified hereinabove and actually on the 5th day of July, 1989.
​
	

	

	

	​

	

	

	

	 
	    
	UNITED STATES OF AMERICA

	 
	​
	SECRETARY OF TRANSPORTATION

	ATTEST:
	​
	MARITIME ADMINISTRATOR

	 
	​
	 

	 
	​
	 

	BY:
		​
	By:
	
	 
	Secretary
	​
	 
	Contracting Officer

	 
	​
	 

	 
	​
	 

	 
	​
	 

	 
	​
	 

	ATTEST:
	​
	MATSON NAVIGATION COMPANY, INC.

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Assistant Secretary
	​
	Title:
	Senior Vice President

	 
	​
	 

	 
	​
	 

	 
	​
	 

	 
	​
	 

	ATTEST:
	​
	MATSON AGENCIES, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

​
​

3

​

	

	

	​

	

	

	ATTEST:
	    
	MATSON FREIGHT AGENCIES, INC.

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	​
	​
	​

	ATTEST:
	​
	MATSON FREIGHT AGENCIES
(EASTERN), INC.

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	​
	​
	​

	ATTEST:
	​
	MATSON INTERMODAL SYSTEM, INC.

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

​
​

4

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	​

	​

	

	

	ATTEST:
	    
	MATSON SERVICES COMPANY, INC.

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	​
	​
	​

	ATTEST:
	    
	MATSON TERMINALS, INC.

	 
	​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	​
	 
	 

	Name:
		​
	Name:
	
	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

​
	

	

	

	Approved as to form:
	 

	 
	 

	 
	 

	By:
		 

	 
	Assistant Chief Counsel
	 

	 
	Maritime Administration
	 

​
​

5

​

	

	

	 
	Counterpart II

	 
	Addendum No. 20

	 
	Contract No. MA/CCF-316

​
FORM OF ADDENDUM TO
MARITIME ADMINISTRATION
CAPITAL CONSTRUCTION FUND AGREEMENT
WITH
MATSON NAVIGATION COMPANY, INC.
​
This Addendum is made by and among the Maritime Administrator (the “Administrator”) and Matson Navigation Company, Inc. (individually “Matson”) and certain wholly-owned subsidiaries or sub-subsidiaries thereof, Matson Agencies, Inc., Matson Freight Agencies, Inc., Matson Freight Agencies (Eastern), Inc., Matson Intermodal System, Inc., Matson Leasing Company, Inc., Matson Services Company, Inc., and Matson Terminals, Inc. (Matson and such subsidiaries referred to collectively as the “Party”), each of which is a citizen of the United States, as an addendum to that certain Capital Construction Fund Agreement Contract No. MA/CCF-316 (the “Agreement”).
​
WHEREAS:
​
1.The Administrator and Matson entered into the Agreement on September 21, 1976, under Section 607, Merchant Marine Act, 1936, as amended (the “Act”);
​
2.The Administrator approved the addition of each of the following subsidiaries to the Agreement on February 23, 1989;
​
Matson Agencies, Inc.
Matson Freight Agencies, Inc.
Matson Freight Agencies (Eastern), Inc.
Matson Intermodal System, Inc.
Matson Services Company, Inc.
Matson Terminals, Inc.
​
​

​

​

3.The parties hereto desire to amend the Agreement as set forth in this Addendum.
​
NOW, THEREFORE, the Administrator and the Party agree as follows:
​
I.Effective for Matson’s 1989 tax year, the agreement is amended as follows:
​
A.Matson Leasing Company, Inc. is added as a party to the Agreement.
​
B.Matson Leasing Company, Inc. agrees to be bound by all the provisions of Contract No. MA/CCF-316 as heretofore amended, and the Act applicable thereto, and the rules and regulations issued pursuant to the Act.
​
II.Except as herein otherwise expressly provided, the Agreement, as heretofore amended, shall remain in full force and effect.
​
IN WITNESS WHEREOF, the parties hereto have executed this Addendum No. 20, in four counterparts, effective as of May 8, 1989 and actually on the 23rd day of July, 1990.
​
	

	

	​

	

	

	 
	    
	UNITED STATES OF AMERICA

	 
	​
	SECRETARY OF TRANSPORTATION

	 
	​
	MARITIME ADMINISTRATION

	 
	 
	​
	 

	By:
		​
	By:
	
	 
	Secretary
	​
	 
	Contracting Officer

	 
	Maritime Administration
	​
	 

	​
	​
	​

	ATTEST:
	    
	MATSON NAVIGATION COMPANY, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Assistant Secretary
	​
	Title:
	Senior Vice President

	 
	(print or type)
	​
	 
	(print or type)

​
​

2

​

	

	

	​

	

	

	ATTEST:
	    
	MATSON AGENCIES, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	 
	(print or type)
	​
	 
	(print or type)

	​
	​
	​

	ATTEST:
	    
	MATSON FREIGHT AGENCIES, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	 
	(print or type)
	​
	 
	(print or type)

	​
	​
	​

	ATTEST:
	    
	MATSON FREIGHT AGENCIES
(EASTERN), INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	 
	(print or type)
	​
	 
	(print or type)

	​
	​
	​

	ATTEST:
	    
	MATSON INTERMODAL SYSTEM, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
		​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
		​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	 
	(print or type)
	​
	 
	(print or type)

​
​

3

​

	

	

	​

	

	

	ATTEST:
	    
	MATSON LEASING COMPANY, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type) 
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Controller

	 
	(print or type) 
	​
	 
	(print or type)

	​
	​
	​

	ATTEST:
	    
	MATSON SERVICES COMPANY, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	 
	(print or type)
	​
	 
	(print or type)

	​
	​
	​

	ATTEST:
	    
	MATSON TERMINALS, INC.

	 
	​
	 

	By:
		​
	By:
	
	 
	 
	​
	 
	 

	Name:
		​
	Name:
	
	 
	(print or type)
	​
	 
	(print or type)

	 
	 
	​
	 
	 

	Title:
	Secretary
	​
	Title:
	Vice President

	 
	(print or type)
	​
	 
	(print or type)

​
	

	

	

	Approved as to form:
	 

	 
	 

	 
	 

	By:
		 

	 
	for Assistant Chief Counsel
	 

	 
	Maritime Administration
	 

​
​

4

​

	

	

	 
	Addendum No. 31

	 
	Contract No. MA/CCF-316

​
FORM OF ADDENDUM TO
MARITIME ADMINISTRATION
CAPITAL CONSTRUCTION FUND AGREEMENT
WITH
MATSON NAVIGATION COMPANY, INC.
​
THIS AGREEMENT is made by and between the MARITIME ADMINISTRATOR (the “Administrator”), and MATSON NAVIGATION COMPANY, INC., a citizen of the United States (the “Contractor”), as an addendum to that certain Capital Construction Fund (“CCF’’) Agreement Contract No. MA/CCF-316 (the “Agreement”).
​
WHEREAS:
​
1.The Administrator and the Contractor entered into the Agreement on September 21, 1976, under Section 607 of the Merchant Marine Act, 1936, as amended, now codified as Chapter 535 to Title 46 United States Code (the “Act”); and
​
2.The parties hereto desire to amend the Agreement as set forth in this Addendum.
​
NOW, THEREFORE, the Administrator and the Contractor agree, effective as of August 26, 2005, as follows:
​
I.The Agreement is amended to add each of the following corporations to the Agreement, each of which is a wholly owned subsidiary of the Contractor:
Matson Integrated Logistics, Inc.
Matson Terminals,  Inc.
Matson Ventures, Inc.
​
II.Acceptance by each of the additional corporations of the obligations of the Agreement shall be established by its execution of the acceptance of the addendum.
​
III.Except as herein otherwise expressly provided, the Agreement, as heretofore amended, shall remain in full force and effect.
​
CONFIDENTIAL BUSINESS INFORMATION EXEMPT FROM FOIA DISCLOSURE PURSUANT TO 5 U.S.C. 552(b)(4)
​

​

​

IN WITNESS WHEREOF, the parties have executed this Addendum No. 31 in four counterparts, effective as the date set forth hereinabove and actually on 22nd day of July, 2010.
​
	

	

	

	

	

	 
	    
	UNITED STATES OF AMERICA

	 
	​
	SECRETARY OF TRANSPORTATION

	 
	​
	MARITIME ADMINISTRATION

	ATTEST:
	​
	​

		​
	 

	 
	​
	 

	By:
		​
	By:
	
	 
	Assistant Secretary
	​
	 
	Contracting Officer

	​
	​
	​

	 
	​
	 

		​
	 MATSON NAVIGATION COMPANY, INC.

	ATTEST:
	​
	​

	 
	​
	 

	By:
		​
	By:
	 

	 
	 
	​
	 
	 

	Name:
		​
	Name:
	 

	 
	(print or type) 
	​
	 
	(print or type)

	 
		​
	 
	 

	Title:
	Assistant Secretary 
	​
	Title:
	President

	 
	(print or type) 
	​
	 
	(print or type)

	​

	ADDENDUM ACCEPTED

	​
	​
	​

		    
	MATSON INTEGRATED LOGISTICS, INC.

	 ATTEST:
	​
	​

	 
	​
	 

		​
	By:
	
	 
	​
	 
	 

	By:
		​
	Name:
	
	 
	 
	​
	 
	 

	Name:
		​
	Title:
	Chairman of the Board & President

	 
	 
	​
	 
	 

	Title:
	Assistant Secretary
	​
	 
	 

​
CONFIDENTIAL BUSINESS INFORMATION EXEMPT FROM FOIA DISCLOSURE PURSUANT TO 5 U.S.C. 552(b)(4)
​

2
​

​

	

	

	​

	

	

		    
	MATSON TERMINALS, INC.

	​
	​
	​

	ATTEST:
	​
	By:
	​

	 
	​
	 
	​

	By:
	​
	​
	Name:
	
	 
	​
	 
	 
	 

	Name:
	​
	​
	Title:
	Chairman of the Board and President

	 
	 
	​
	 
	 

	Title:
	Assistant Secretary
	​
	​
	​

	​
	​
	​

		    
	MATSON VENTURES, INC.

	​
	​
	​

	ATTEST:
	​
	By:
	​

	 
	​
	 
	​

	By:
		​
	Name:
	
	 
		​
	 
	
	Name:
		​
	Title:
	Chairman of the Board and President

	 
		​
	 
	 

	Title:
	Assistant Secretary 
	​
	​
	​

​
	

	

	

	Approved as to form:
	 

	 
	 

	By:
		 

	 
	Assistant Chief Counsel
	 

	 
	Maritime Administration
	 

​
CONFIDENTIAL BUSINESS INFORMATION EXEMPT FROM FOIA DISCLOSURE PURSUANT TO 5 U.S.C. 552(b)(4)
​
​

3

​

Addendum No. 33
Contract No.  MA/CCF-316
​
Recommendation
​
It is recommended with respect to the request from Matson Navigation Company, Inc. (MatNav), pursuant to 46 CFR Part 390, that the Associate Administrator for Business and Finance Development take the following actions with respect to Capital Construction Fund Agreement (CCF), Contract No. MA/CCF-316,  effective as of the date of the acquisition of Horizon Lines, Inc. by MatNav.
​
	I.
	Approve adding the following companies as parties to the CCF: Horizon Lines, Inc., Horizon Lines Holding Corp., Horizon Lines, LLC, Horizon Lines of Alaska, LLC, Horizon Lines Merchant Vessels, LLC and Horizon Lines Alaska Vessels, LLC.

​
	II.
	Approve replacing the existing Schedule A with the attached revised Schedule A that adds three D-7 Vessels, the HORIZON ANCHORAGE (O.N. 910306), the HORIZON KODIAK (O.N. 910308) and HORIZON TACOMA (O.N. 910307) and one SL-18 containership the HORIZON CONSUMER (O.N. 552818) (the Vessels), which will be acquired by MatNav from Horizon Lines, Inc., as eligible agreement vessels.

​
	III.
	Approve replacing the existing Schedule B-I with the attached revised Schedule B-I that adds acquisition of the Vessels as a qualified program objective and adds updates the estimated costs and amount to be withdrawn from the CCF for two unnamed 3600–TEU container vessels that are currently under construction.

​
	IV.
	Approve replacing the existing Schedule B-III with the attached revised Schedule B-III that adds reconstruction of the HORIZON ANCHORAGE, HORIZON KODIAK and HORIZON TACOMA (installation of exhaust gas cleaning systems) and reconstruction of the HORIZON CONSUMER (re-engining) as program qualified objectives.

​
	V.
	Approve replacing the existing Schedule B-IV with the attached revised Schedule B-IV that adds repayment of principal portion of acquisition-related indebtedness on the Vessels as well as repayment of the principal portion of reconstruction-related indebtedness of the HORIZON ACHORAGE, the HORIZON KODIAK and HORIZON TACOMA as a qualified program objective. Note that MatNav has demonstrated to the satisfaction of the Maritime Administration that the indebtedness has been incurred in direct connection with the acquisition or reconstruction of a qualified agreement vessel.

​
Note that the acquisition-related indebtedness and reconstruction-related indebtedness placed on the Vessels is to a related party. Determine that no portion of the repayment of the indebtedness constitutes a dividend, return of capital or a contribution of capital under the Internal Revenue Code.
​
Grant MatNav permission,  pursuant to 46 CFR 390.10(b)(1), to make non-qualified withdrawals to pay the principal portion of qualified vessel acquisition indebtedness if (a) the tax basis in the Vessels has been reduced to zero and (b) any remaining tax basis reduction pertaining to the withdrawal has been applied to all of the other vessels, if any, then owned by MatNav or its subsidiaries.
​
	VI.
	Require that MatNav sign below indicating its acceptance of addendum No. 33 and incorporating the foregoing into the agreement.

​

​

	​

	​

	​

	​
	Approved:

	​
	​

	​
	​

	​
	Owen Doherty, Associate

	​
	Administrator for Business and

	​
	Finance Development

	​

	​

	​

	​

	​
	Date
	​

​
Accepted as Addendum No. 33 to Capital Construction Fund Agreement No. MA/CCF-316, as of the date that MatNav acquires Horizon Lines, Inc.
​
	​

	​

	​

	​

	​

	Matson Navigation Company, Inc.
	    
	Matson Terminals, Inc.

	​
	​
	​

	By:
	​
	​
	By:
	​

	​
	​
	​
	​
	​

	Title:
	Senior Vice President and Chief Financial Officer
	​
	Title:
	Vice President and Chief Financial Officer

	​
	​
	​
	​
	​

	Matson Logistics, Inc.
	​
	Matson Ventures, Inc.

	(fka Matson Integrated Logistics, Inc.)
	​
	​

	​
	​
	​

	By:
	​
	​
	By:
	​

	​
	​
	​
	​
	​

	Title:
	Vice President and Chief Financial Officer
	​
	Title:
	Vice President and Chief Financial Officer

	​
	​
	​
	​
	​

​

​Document

EXHIBIT 4.1

    
DESCRIPTION OF THE REGISTRANT’S SECURITIES
 REGISTERED PURSUANT TO SECTION 12 OF THE 
SECURITIES EXCHANGE ACT OF 1934
AS OF DECEMBER 31, 2021

The following is a brief description of the rights of the authorized capital stock of Enterprise Financial Services Corp (the “Company”) and related provisions of our Certificate of Incorporation, as amended (the “Certificate of Incorporation”), our Amended and Restated Bylaws (the “Bylaws”) and applicable Delaware law.  This description is not complete, and is subject to and qualified in its entirety by, and should be read in conjunction with, the Certificate of Incorporation and the Bylaws, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein, and the applicable provisions of the Delaware General Corporation Law, as amended from time to time (the “DGCL”) and federal law governing bank holding companies. 
AUTHORIZED CAPITAL STOCK
Under our Certificate of Incorporation, we are authorized to issue up to 75,000,000 shares of common stock, $0.01 par value ( “Common Stock”), and 5,000,000 shares of preferred stock, $0.01 par value ( “Preferred Stock”).  
LISTING
The Company’s Common Stock is listed on the Nasdaq Global Select Market under the trading symbol “EFSC”. The Company’s Preferred Stock is listed on the Nasdaq Global Select Market under the trading symbol “EFSCP”.
DESCRIPTION OF COMMON STOCK
Fully Paid and Nonassessable
All of the issued and outstanding shares of Common Stock are fully paid and nonassessable. 
Voting Rights
The holders of our Common Stock are entitled to vote upon all matters submitted to a vote of our stockholders and are entitled to one vote for each share of Common Stock held. There is no cumulative voting.
Dividends
Subject to the prior rights and preferences applicable to shares of Preferred Stock or any series of Preferred Stock, the holders of Common Stock are entitled to participate ratably in all dividends, payable in cash, stock or otherwise, that may be declared by our Board of Directors out of any funds legally available for the payment of dividends. Each such distribution will be payable to holders of record as they appear on our stock transfer books on such record dates and dividend dates as may be fixed by our Board of Directors. The payment of dividends is also subject to the restrictions set forth in the DGCL and the limitations imposed under bank regulatory requirements and capital guidelines.
Liquidation/Dissolution Rights
If we voluntarily or involuntarily liquidate, dissolve or wind-up, or upon any distribution of our assets, the holders of our Common Stock will be entitled to receive, after distribution in full of the preferential amounts, if any, to be distributed to the holders of Preferred Stock or any series of Preferred Stock, all of the remaining assets available for distribution equally and ratably in proportion to the number of shares of Common Stock held by them.

Other Rights
Holders of our Common Stock do not have preemptive rights under the DGCL, or our Certificate of Incorporation or Bylaws. Shares of our Common Stock are not redeemable and have no subscription or conversion rights.
Transfer Agent 
The transfer agent and registrar for our Common Stock is Computershare N.A.
DESCRIPTION OF PREFERRED STOCK
On November 16, 2021, the Company filed a certificate of designations to its Certificate of Incorporation (the “Certificate of Designation”) with the Secretary of State of the State of Delaware, establishing the voting powers, designations, preferences, special rights, and qualifications of the Series A Preferred Stock (as defined below). On November 17, 2021, the Company issued and sold 3,000,000 depositary shares each representing a 1/40th ownership interest in the 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), par value $.01 per share, with a liquidation preference of $1,000 per share of Series A Preferred Stock (equivalent to $25.00 per depositary share) (the “Depositary Shares”), all of which were outstanding as of December 31, 2021. For additional information, see “Series A Preferred Stock” and “Depositary Shares” below.
Series A Preferred Stock
Generally
 The Series A Preferred Stock is a single series of Preferred Stock. 75,000 shares of Preferred Stock are designated as Series A Preferred Stock. The Series A Preferred Stock is not convertible into, or exchangeable for, shares of Common Stock or any other class or series of other securities of the Company. The Series A Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company to redeem, retire or repurchase the Series A Preferred Stock. The Series A Preferred Stock represents non-withdrawable capital, is not an account of an insurable type, and is not insured or guaranteed by the Federal Deposit Insurance Corporation (the “FDIC”) or any other governmental agency or instrumentality.
The number of designated shares of Series A Preferred Stock may from time to time be increased (but not in excess of the total number of authorized shares of Preferred Stock) or decreased (but not below the number of shares of Series A Preferred Stock then outstanding) by resolution of our Board of Directors (or a duly authorized committee thereof), without the vote or consent of the holders of the Series A Preferred Stock. Shares of Series A Preferred Stock that are redeemed, purchased or otherwise acquired by us will be cancelled and will revert to authorized but unissued shares of Preferred Stock undesignated as to series. We have the authority to issue fractional shares of Series A Preferred Stock.
We reserve the right to re-open this series and issue additional shares of the Series A Preferred Stock and the related Depositary Shares either through public or private sales at any time and from time to time without notice to or the consent of holders of the Series A Preferred Stock, provided that such additional shares of Series A Preferred Stock will only be issued if they are fungible with the original shares for U.S. federal income tax purposes. The additional shares of Series A Preferred Stock and the related Depositary Shares will form a single series with the Series A Preferred Stock and the related Depositary Shares, respectively.
Rank
With respect to the payment of dividends by, and distributions of assets upon any liquidation, dissolution or winding up of, the Company, the Series A Preferred Stock rank:

•senior to our Common Stock and any class or series of our stock that may be issued in the future that is not expressly stated to be on parity with or senior to the Series A Preferred Stock with respect to such dividend and distributions (“Junior Stock”);
•on parity with, or equally to, any class or series of our capital stock we have issued and may issue in the future that is expressly stated to be on parity with the Series A Preferred Stock with respect to such dividends and distributions;
•junior to any class or series of our capital stock we may issue in the future that is expressly stated to be senior to the Series A Preferred Stock with respect to such dividends and distributions, if the issuance is approved by the holders of at least two-thirds of the outstanding shares of Series A Preferred Stock; and
•junior to our secured and unsecured debt.
Dividends
Dividends on the Series A Preferred Stock are not cumulative or mandatory. If our Board of Directors, or a duly authorized committee thereof, does not declare a dividend on the Series A Preferred Stock in respect of a dividend period, then no dividend shall be deemed to be payable for such dividend period, or be cumulative, and we will have no obligation to pay any dividend for that dividend period, whether or not our Board of Directors, or a duly authorized committee thereof, declares a dividend on the Series A Preferred Stock or any other class or series of our capital stock for any future dividend period. A “dividend period” is the period from and including a dividend payment date to but excluding the next dividend payment date.
Holders of Series A Preferred Stock will be entitled to receive, when, as and if declared by our Board of Directors, or a duly authorized committee thereof, only out of funds legally available for the payment of dividends, non-cumulative cash dividends payable on the stated amount of $1,000 per share at a rate of 5.00% per annum, and no more, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year; provided, however, that if any such dividend payment date is not a business day, then such date shall nevertheless be a dividend payment date but dividends on the Series A Preferred Stock shall be paid on the next succeeding business day (without interest or any other adjustment to the amount of dividends paid in respect of such delayed payment). In the event that we issue additional shares of Series A Preferred Stock after the original issue date, those shares will be entitled to dividends that are declared on or after the date they are issued.
If any dividend payment date is not a business day, then the applicable dividend will be paid on the next business day without any adjustment to, or interest on, the amount of dividends paid. We will not pay interest or any sum of money instead of interest on any dividend, or in lieu of dividends not declared. A business day means any weekday that is not a legal holiday in New York, New York, and is not a day on which banking institutions in New York, New York or Clayton, Missouri, are closed.
Dividends will be payable to holders of record of Series A Preferred Stock as they appear on our stock register on the applicable record date, which shall be the 15th calendar day before the applicable dividend payment date, or such other record date, not exceeding 60 days nor less than 10 days before the applicable dividend payment date, as shall be fixed by our Board of Directors, or a duly authorized committee thereof, in advance of payment of each particular dividend. The corresponding record dates for the Depositary Shares will be the same as the record dates for the Series A Preferred Stock.
Dividends payable on the Series A Preferred Stock will be calculated for each dividend period (or portion thereof) on the basis of a 360-day year consisting of twelve 30-day months. Dollar amounts resulting from that calculation will be rounded to the nearest cent, with one-half cent being rounded upward. Dividends on the Series A Preferred Stock will cease to accrue on the redemption date, if any, unless we default in the payment of the redemption price of the shares of the Series A Preferred Stock called for redemption.

            Restrictions on Dividends, Redemptions and Repurchases
            Under the DGCL, subject to limited exceptions relating to our net earnings in specified periods, we may declare or pay dividends on the Series A Preferred Stock only if, after payment of such dividends, we would be able to pay our indebtedness as it becomes due in the usual course of business and only to the extent by which our total assets after payment of such dividends exceed the sum of our total liabilities. When the need to make these determinations arises, our Board of Directors will determine the amount of our total assets, total liabilities and liquidation preference amount with regard to outstanding shares of Series A Preferred Stock in accordance with the DGCL.
Our ability to pay dividends on the Series A Preferred Stock also depends on the ability of the Enterprise Bank & Trust, our wholly-owned bank subsidiary, to pay dividends to the Company. The ability of the Company and Enterprise Bank & Trust to pay dividends in the future is subject to bank regulatory requirements and capital guidelines and policies established by the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the FDIC and the Missouri Division of Finance, as applicable.
So long as any share of Series A Preferred Stock remains outstanding, unless dividends on all outstanding shares of Series A Preferred Stock for the most recently completed dividend period have been paid in full or declared and a sum sufficient for the payment thereof has been set aside for payment:
•no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any Junior Stock (other than (i) a dividend payable solely in Junior Stock or (ii) any dividend in connection with the implementation of a stockholders’ rights plan, or the redemption or repurchase of any rights under any such plan);
•no monies may be paid or made available for a sinking fund for the redemption or retirement of any Junior Stock nor shall any shares of Junior Stock be repurchased, redeemed or otherwise acquired for consideration by us, directly or indirectly, during a dividend period (other than (i) as a result of a reclassification of Junior Stock for or into other Junior Stock, (ii) the exchange or conversion of one share of Junior Stock for or into another share of Junior Stock, (iii) through the use of the proceeds of a substantially contemporaneous sale of other shares of Junior Stock, (iv) purchases, redemptions or other acquisitions of shares of the Junior Stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants, (v) purchases of shares of Junior Stock pursuant to a contractually binding requirement to buy Junior Stock existing prior to or during the most recently completed preceding dividend period, including under a contractually binding stock repurchase plan, (vi) the purchase of fractional interests in shares of Junior Stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged or (vii) the acquisition by us or any of our subsidiaries of record ownership in Junior Stock for the beneficial ownership of any other persons (other than for the beneficial ownership by us or any of our subsidiaries), including as trustees or custodians, nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by us); and
•no monies may be paid or made available for a sinking fund for the redemption or retirement of any Parity Stock nor shall any shares of Parity Stock, be repurchased, redeemed or otherwise acquired for consideration by us, directly or indirectly, during a dividend period (other than (i) any purchase or other acquisition of shares of Series A Preferred Stock and Parity Stock in accordance with a purchase offer made in writing or by publication (as determined by our Board of Directors, or a duly authorized committee thereof), to all holders of such shares on such terms as our Board of Directors (or a duly authorized committee thereof), after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes, (ii) as a result of a reclassification of Parity Stock for or 

into other Parity Stock, (iii) the exchange or conversion of Parity Stock for or into other Parity Stock or Junior Stock, (iv) through the use of the proceeds of a substantially contemporaneous sale of other shares of Parity Stock, (v) purchases of shares of Parity Stock pursuant to a contractually binding requirement to buy Parity Stock existing prior to or during the preceding dividend period, including under a contractually binding stock repurchase plan, (vi) the purchase of fractional interests in shares of Parity Stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged, or (vii) the acquisition by us or any of our subsidiaries of record ownership in Parity Stock for the beneficial ownership of any other persons (other than for the beneficial ownership by us or any of our subsidiaries), including as trustees or custodians).
If our Board of Directors (or a duly authorized committee thereof) elects to declare only partial instead of full dividends for a dividend payment date and the related dividend period on the shares of Series A Preferred Stock or any class or series of our stock that ranks on a parity with the Series A Preferred Stock in the payment of current dividends, then, to the extent permitted by the terms of the Series A Preferred Stock and each outstanding series of Dividend Parity Stock, such partial dividends shall be declared on shares of Series A Preferred Stock and Dividend Parity Stock, and dividends so declared shall be paid, as to any such dividend payment date and related dividend period in amounts such that the ratio of the partial dividends declared and paid on each such series to full dividends on each such series is the same. As used in this paragraph, “full dividends” means, as to any Dividend Parity Stock that bears dividends on a cumulative basis, the amount of dividends that would need to be declared and paid to bring such Dividend Parity Stock current in dividends, including undeclared dividends for past dividend periods. To the extent a dividend period with respect to the Series A Preferred Stock or any series of Dividend Parity Stock (in either case, the “First Series”) coincides with more than one dividend period with respect to another series applicable (in either case, a “Second Series”), then, for purposes of this paragraph, our Board of Directors (or a duly authorized committee thereof) may, to the extent permitted by the terms of each affected series, treat such dividend period for the First Series as two or more consecutive dividend periods, none of which coincides with more than one dividend period with respect to the Second Series, or may treat such dividend period(s) with respect to any Dividend Parity Stock and dividend period(s) with respect to the Series A Preferred Stock for purposes of this paragraph in any other manner that it deems to be fair and equitable in order to achieve ratable payments of dividends on such Dividend Parity Stock and the Series A Preferred Stock.
As used herein, “Parity Stock” means any other class or series of stock of the Company that ranks on a parity with the Series A Preferred Stock in the payment of dividends and in the distribution of assets on any liquidation, dissolution or winding up of the Company. As used herein, “Dividend Parity Stock” means any class or series of our stock that ranks on a parity with the Series A Preferred Stock in the payment of current dividends. As of the date hereof, there are no series of Parity Stock outstanding. 
As used herein, “Senior Stock” means any other class or series of stock of the Company ranking senior to the Series A Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of the Company. As of the date hereof, there are no series of Senior Stock outstanding.
Subject to the considerations described above, and not otherwise, dividends (payable in cash, stock or otherwise), as may be determined by our Board of Directors, or a duly authorized committee thereof, may be declared and paid on our Common Stock and any other Junior Stock from time to time out of any assets legally available for such payment, and the holders of Series A Preferred Stock shall not be entitled to participate in any such dividend.
Dividends on the Series A Preferred Stock will not be declared, paid or set aside for payment to the extent such act would cause us to fail to comply with applicable laws and regulations, including applicable capital adequacy rules.
Redemption

Optional Redemption
The Series A Preferred Stock is perpetual and has no maturity date. The Series A Preferred Stock is not subject to any mandatory redemption, sinking fund or other similar provisions. We may redeem the Series A Preferred Stock at our option, in whole or in part, from time to time, on any dividend payment date on or after December 15, 2026, at a redemption price equal to the stated amount of $1,000 per share (equivalent to $25.00 per Depositary Share), together (except as otherwise provided herein) with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Neither the holders of Series A Preferred Stock nor holders of Depositary Shares will have the right to require the redemption or repurchase of the Series A Preferred Stock, and should not expect such redemption or repurchase. Notwithstanding the foregoing, we may not redeem shares of the Series A Preferred Stock without having received the prior approval of the Appropriate Federal Banking Agency (as defined below) with respect to us, as defined in Section 3(q) of the Federal Deposit Insurance Act, or any successor provision (the “Appropriate Federal Banking Agency”), if then required under capital rules applicable to us. Our Appropriate Federal Banking Agency is the Federal Reserve.
Redemption Following a Regulatory Capital Treatment Event
We may redeem shares of the Series A Preferred Stock at any time within 90 days following a Regulatory Capital Treatment Event (as defined below), in whole but not in part, at a redemption price equal to $1,000 per share (equivalent to $25.00 per Depositary Share), together (except as otherwise provided herein) with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Such redemption shall be subject to prior approval of the Federal Reserve, if the Series A Preferred Stock is capital for bank regulatory purposes or such approval is otherwise required.
A “Regulatory Capital Treatment Event” means the good faith determination by the Company that, as a result of (i) any amendment to, or change in, the laws, rules or regulations of the United States (including, for avoidance of doubt, any agency or instrumentality of the United States, including the Federal Reserve and other federal bank regulatory agencies) or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of any share of Series A Preferred Stock, (ii) any proposed change in those laws, rules or regulations that is announced or becomes effective after the initial issuance of any share of the Series A Preferred Stock, or (iii) any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules or regulations or policies with respect thereto that is announced after the initial issuance of any share of the Series A Preferred Stock, there is more than an insubstantial risk that the Company will not be entitled to treat the full stated amount of $1,000 per share of Series A Preferred Stock then outstanding as Tier 1 Capital (or its equivalent) for purposes of the capital adequacy rules of the Federal Reserve (or, as and if applicable, the capital adequacy rules or regulations of any successor Appropriate Federal Banking Agency), as then in effect and applicable, for as long as any share of Series A Preferred Stock is outstanding. Dividends will cease to accrue on those shares on the redemption date.
Redemption Procedures
If shares of the Series A Preferred Stock are to be redeemed, the notice of redemption shall be given by first class mail, postage prepaid, addressed to the holders of record of the shares to be redeemed at their respective last addresses appearing on our books, mailed not less than 30 days nor more than 60 days prior to the date fixed for redemption thereof (provided that, if the Series A Preferred Stock or any Depositary Shares representing interests in the Series A Preferred Stock are held in book-entry form through The Depositary Trust Company (“DTC”) or any other similar facility, we may give such notice at such time and in any manner permitted by such facility). Any notice delivered as provided in this paragraph shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the delivery thereof, to any holder of shares of Series A Preferred Stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock. Each notice of redemption will include a statement setting forth:
•the redemption date;

•the number of shares of the Series A Preferred Stock to be redeemed and, if less than all the shares held by the holder are to be redeemed, the number of shares of Series A Preferred Stock to be redeemed from the holder;
•the redemption price;
•the place or places where the certificates evidencing shares of Series A Preferred Stock are to be surrendered for payment of the redemption price; and
•that dividends on such shares will cease to accrue on the redemption date.
If notice of redemption of any shares of Series A Preferred Stock has been duly given and if on or before the redemption date specified in the notice all funds necessary for such redemption have been irrevocably set aside by us separate and apart from our other assets, in trust for the pro rata benefit of the holders of any shares of Series A Preferred Stock so called for redemption so as to be and continue to be available therefor, then, notwithstanding that any certificate for any share so called for redemption has not been surrendered for cancellation in the case that the shares of Series A Preferred Stock are issued in certificated form, on and after the redemption date, unless we default in the payment of the redemption price of the shares of the Series A Preferred Stock called for redemption, dividends will cease to accrue on all shares of Series A Preferred Stock so called for redemption, and all such shares of Series A Preferred Stock so called for redemption shall no longer be deemed outstanding and all rights of the holders of such shares with respect to such shares will terminate, including rights described below under the heading “Voting Rights”, except the right to receive the amount payable on such redemption, without interest. Any funds unclaimed at the end of two years from the redemption date, to the extent permitted by law, shall be released from the trust so established and may be commingled with our other funds, and after that time the holders of the shares so called for redemption shall look only to us for payment of the redemption price of such shares.
The redemption price for any shares of Series A Preferred Stock shall be payable on the redemption date to the holder of such shares against surrender of the certificate(s) evidencing such shares to us or our agent, if the shares of Series A Preferred Stock are issued in certificated form. Any declared but unpaid dividends payable on a redemption date that occurs subsequent to the applicable record date for a dividend period shall not be paid to the holder entitled to receive the redemption price on the redemption date, but rather shall be paid to the holder of record of the redeemed shares on such record date relating to the applicable dividend payment date.
In case of any redemption of only part of the shares of the Series A Preferred Stock at the time outstanding, the shares to be redeemed shall be selected pro rata or by lot. Subject to the provisions hereof (or, if the Depositary Shares are issued or held in book-entry form through DTC or another facility, in accordance with the procedures of such facility), our Board of Directors, or a duly authorized committee thereof, has full power and authority to prescribe the terms and conditions upon which shares of Series A Preferred Stock shall be redeemed from time to time. If we have issued certificates for the Series A Preferred Stock and fewer than all shares represented by any certificates are redeemed, new certificates shall be issued representing the unredeemed shares without charge to the holders thereof.
Under the Federal Reserve’s current capital regulations applicable to financial holding companies, any redemption of the Series A Preferred Stock is subject to prior approval by the Federal Reserve and we must either replace the shares to be redeemed with an equal amount of Tier 1 Capital or additional Tier 1 Capital or demonstrate to the Federal Reserve that the Company will continue to hold capital commensurate with its risk. Any redemption of the Series A Preferred Stock is subject to our receipt of any required prior approval by the Federal Reserve and to the satisfaction of any conditions set forth by the Federal Reserve applicable to redemption of the Series A Preferred Stock.
The Series A Preferred Stock is not subject to any mandatory redemption, sinking fund or other similar provisions. Neither the holders of the Series A Preferred Stock nor the holders of the related Depositary Shares have the right to require the redemption or repurchase of the Series A Preferred Stock.

Liquidation Rights
In the event we liquidate, dissolve or wind-up our business and affairs, either voluntarily or involuntarily, before any distribution or payment out of our assets may be made to or set aside for the holders of any Junior Stock, holders of the Series A Preferred Stock are entitled to receive out of our assets legally available for distribution to our stockholders (i.e., after satisfaction of all our liabilities to creditors, if any) an amount equal to the stated amount of $1,000 per share (equivalent to $25.00 per Depositary Share), together with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the date of such payment (the “Liquidation Preference”). Holders of the Series A Preferred Stock will not be entitled to any other amounts from us after they have received their full liquidating distribution.
In any such distribution, if the assets of the Company are not sufficient to pay the Liquidation Preference in full to all holders of the Series A Preferred Stock and all holders of any class or series of our stock that ranks on parity with the Series A Preferred Stock in the distribution of assets on liquidation (the “Liquidation Preference Parity Stock”), the amounts paid to the holders of Series A Preferred Stock and to the holders of all Liquidation Preference Parity Stock will be paid pro rata in accordance with the respective aggregate Liquidation Preferences of the Series A Preferred Stock and all such Liquidation Preference Parity Stock. In any such distribution, the “liquidation preference” of any holder of our stock other than the Series A Preferred Stock means the amount otherwise payable to such holder in such distribution (assuming no limitation on our assets available for such distribution), including an amount equal to any declared but unpaid dividends in the case of any holder or stock on which dividends accrue on a noncumulative basis and, in the case of any holder of stock on which dividends accrue on a cumulative basis, an amount equal to any unpaid, accrued, cumulative dividends, whether or not earned or declared, as applicable. If the Liquidation Preference has been paid in full to all holders of Series A Preferred Stock and all holders of any Liquidation Preference Parity Stock, the holders of our Junior Stock will be entitled to receive all remaining assets of the Company according to their respective rights and preferences.
For purposes of this section, the merger, consolidation or other business combination of the Company with any other entity, including a transaction in which the holders of Series A Preferred Stock receive cash, securities or property for their shares, or the sale, lease, conveyance, transfer or exchange of all or substantially all of the assets of the Company for cash, securities or other property, shall not constitute a liquidation, dissolution or winding up of the Company.
Because we are a holding company, our rights and the rights of our creditors and our stockholders, including the holders of the Series A Preferred Stock, to participate in the distribution of assets of any of our subsidiaries upon that subsidiary’s liquidation or recapitalization may be subject to the prior claims of that subsidiary’s creditors, except to the extent that we are a creditor with recognized claims against the subsidiary.
Voting Rights
Except as provided below or otherwise required by law, the holders of the Series A Preferred Stock will have no voting rights.
Right to Elect Two Directors upon Nonpayment of Dividends
If and whenever dividends payable on Series A Preferred Stock or any class or series of Parity Stock having voting rights equivalent to those described in this paragraph (“Voting Parity Stock”), have not been declared and paid (or, in the case of Voting Parity Stock bearing dividends on a cumulative basis, shall be in arrears) in an aggregate amount equal to full dividends for at least six quarterly dividend periods or their equivalent, whether or not consecutive (a “Nonpayment Event”), the number of directors on the Board of Directors shall automatically be increased by two and the holders of Series A Preferred Stock, together with the holders of any outstanding Voting Parity Stock then entitled to vote for additional directors, voting together as a single class, shall be entitled to elect by a vote of the holders of record of a majority of the outstanding Series A Preferred Stock the two additional directors (the “Preferred Stock Directors”); provided that the election of any such directors shall not cause us to violate the corporate governance requirement of Nasdaq Global Select Market (“Nasdaq”) (or any other exchange 

on which our securities may be listed) that listed companies must have a majority of independent directors and provided further that our Board of Directors shall at no time include more than two Preferred Stock Directors (including, for purposes of this limitation, all directors that the holders of any series of voting Preferred Stock are entitled to elect pursuant to like voting rights).
In the event that the holders of Series A Preferred Stock and such other holders of Voting Parity Stock shall be entitled to vote for the election of the Preferred Stock Directors following a Nonpayment Event, such directors shall be initially elected following such Nonpayment Event only at a special meeting called at the request of the holders of record of at least 20% of the stated amount of the Series A Preferred Stock and each other series of Voting Parity Stock then outstanding (unless such request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of our stockholders, in which event such election shall be held only at such next annual or special meeting of stockholders), and at each subsequent annual meeting of our stockholders. Such request to call a special meeting for the initial election of the Preferred Stock Directors after a Nonpayment Event shall be made by written notice, signed by the requisite holders of Series A Preferred Stock or Voting Parity Stock, and delivered to our Corporate Secretary in such manner as provided for in the Certificate of Designation, or as may otherwise be required or permitted by applicable law. If our Corporate Secretary fails to call a special meeting for the election of the Preferred Stock Directors within 20 days of receiving proper notice, any holder of Series A Preferred Stock or Voting Parity Stock may call such a meeting at our expense solely for the election of the Preferred Stock Directors, and for this purpose and no other (unless provided otherwise by applicable law) such Series A Preferred Stock holder shall have access to our stock ledger.
Any Preferred Stock Director may be removed at any time without cause by the holders of record of a majority of the outstanding shares of Series A Preferred Stock and Voting Parity Stock, voting together as a single class in proportion to their respective stated amounts. The Preferred Stock Directors elected at a special meeting shall hold office until the next annual meeting of the stockholders if such office shall not have previously terminated as described below. In case any vacancy shall occur among the Preferred Stock Directors, a successor shall be elected by our Board of Directors to serve until the next annual meeting of the stockholders on the nomination of the then remaining Preferred Stock Director or, if no Preferred Stock Director remains in office, by a vote of the holders of record of a majority of the outstanding Series A Preferred Stock and such Voting Parity Stock for which dividends have not been paid, voting as a single class, provided that the election of any such directors shall not cause us to violate the corporate governance requirement of Nasdaq (or any other exchange on which our securities may be listed) that listed companies must have a majority of independent directors. Any such vote of stockholders to remove, or to fill a vacancy in the office of, a Preferred Stock Director may be taken only at a special meeting of such stockholders, called as provided above for an initial election of a Preferred Stock Director after a Nonpayment Event (unless such request is received less than 90 days before the date fixed for the next annual or special meeting of the stockholders, in which event such election shall be held at such next annual or special meeting of stockholders). The Preferred Stock Directors shall each be entitled to one vote per director on any matter that shall come before our Board of Directors for a vote.
When (i) dividends have been paid (or declared and a sum sufficient for payment thereof set aside) in full on the Series A Preferred Stock on four consecutive dividend payment dates following a Nonpayment Event and (ii) the rights of holders of any Voting Parity Stock to participate in electing the Preferred Stock Directors shall have ceased, the right of holders of the Series A Preferred Stock to participate in the election of Preferred Stock Directors shall cease (but subject always to the revesting of such voting rights in the case of any future Nonpayment Event), the terms of office of all the Preferred Stock Directors shall immediately terminate, and the number of directors constituting our Board of Directors shall automatically be reduced accordingly. In determining whether dividends have been paid for at least four consecutive quarterly dividend periods following a Nonpayment Event, we may take account of any dividend we elect to pay for any dividend period after the regular dividend payment date for that period has passed.
In addition, if and when the rights of holders of Series A Preferred Stock terminate for any reason, including under circumstances described above under the heading “Redemption”, such voting rights shall terminate along with the other rights (except, if applicable, the right to receive the redemption price, together with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date) and the terms 

of any additional directors elected by the holders of Series A Preferred Stock and any Voting Parity Stock shall terminate automatically and the number of directors reduced by two, assuming that the rights of holders of Voting Parity Stock have similarly terminated.
Under regulations adopted by the Federal Reserve, if the holders of any series of preferred stock (including the Series A Preferred Stock) are or become entitled to vote for the election of directors, such series, along with any other holders of stock that are entitled to vote for the election of directors with that series, will be deemed a class of voting securities. A company holding 25% or more of that class, or less if it otherwise exercises a “controlling influence” over us, will be subject to regulation as a bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”). In addition, at the time the series is deemed a class of voting securities, any other bank holding company will be required to obtain the prior approval of the Federal Reserve under the BHC Act to acquire or retain more than 5% of that class. Any other person (other than a bank holding company) will be required to obtain the non-objection of the Federal Reserve under the Change in Bank Control Act of 1978, as amended, to acquire or retain 10% or more of that class.
Other Voting Rights
So long as any shares of Series A Preferred Stock remain outstanding, in addition to any other vote or consent of stockholders required by law or our Certificate of Incorporation, the affirmative vote or consent of the holders of at least two-thirds of all outstanding shares of the Series A Preferred Stock, voting together with any other series of Preferred Stock that would be adversely affected in substantially the same manner and entitled to vote as a single class in proportion to their respective stated amounts (to the exclusion of all other series of Preferred Stock), given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, will be necessary to:
•amend or alter our Certificate of Incorporation to authorize or increase the authorized amount of, or issue shares of, any class or series of our capital stock ranking senior to the Series A Preferred Stock in the payment of dividends or in the distribution of assets on any liquidation, dissolution or winding up of the Company, or issue any obligation or security convertible into or evidencing the right to purchase any such shares;
•amend, alter or repeal the provisions of our Certificate of Incorporation so as to materially and adversely affect the powers, preferences, privileges or rights of the Series A Preferred Stock, taken as a whole; provided, however, that any amendment to authorize or create, or increase the authorized amount of, any class or series of stock that does not rank senior to the Series A Preferred Stock in either payment of dividends (whether such dividends are cumulative or non-cumulative) or in the distribution of assets upon liquidation, dissolution or winding up of the Company will not be deemed to affect adversely the powers, preferences, privileges or rights of the Series A Preferred Stock; or
•consummate (i) a binding share-exchange or reclassification involving the Series A Preferred Stock or (ii) a merger or consolidation of the Company with or into another entity (whether or not a corporation), unless in each case (A) the shares of the Series A Preferred Stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, the Series A Preferred Stock is converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent and (B) such shares remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers, and restrictions and limitations thereof, of the Series A Preferred Stock immediately prior to such consummation, taken as a whole.
If an amendment, alteration, repeal, share exchange, reclassification, merger or consolidation described above would adversely affect one or more but not all series of Preferred Stock (including the Series A Preferred 

Stock for this purpose), then only the series affected and entitled to vote shall vote to the exclusion of all other series of Preferred Stock.
Without the consent of the holders of the Series A Preferred Stock, so long as such action does not adversely affect the rights, preferences, privileges and voting powers of the Series A Preferred Stock, we may amend, alter, supplement or repeal any terms of the Series A Preferred Stock:
•to cure any ambiguity, or to cure, correct or supplement any provision contained in the Certificate of Designation for the Series A Preferred Stock that may be defective or inconsistent; or
•to make any provision with respect to matters or questions arising with respect to the Series A Preferred Stock that is not inconsistent with the provisions of the Certificate of Designation.
The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series A Preferred Stock shall have been redeemed or called for redemption on proper notice and sufficient funds have been set aside by us for the benefit of the holders of the Series A Preferred Stock to effect the redemption.
Voting Rights under the DGCL
Delaware law provides that the holders of preferred stock will have the right to vote separately as a class on any amendment to our Certificate of Incorporation that would increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely. If any such proposed amendment would alter or change the powers, preferences or special rights of one or more series of preferred stock so as to affect them adversely, but would not so affect the entire class of preferred stock, only the shares of the series so affected shall be considered a separate class for purposes of this vote on the amendment. This right is in addition to any voting rights that may be provided for in our Certificate of Incorporation.
            Depositary Agent, Transfer Agent and Registrar
Computershare N.A. is the depositary and transfer agent and registrar for the Series A Preferred Stock. We may, in our sole discretion, remove the depositary in accordance with the agreement between us and the depositary; provided that we will use our best efforts to ensure that there is, at all relevant times when the Series A Preferred Stock is outstanding, a person or entity appointed and serving as transfer agent and/or registrar. The transfer agent and/or registrar may be a person or entity affiliated with us.
Preemptive and Conversion Rights
The holders of the Series A Preferred Stock do not have any preemptive rights. The Series A Preferred Stock is not convertible into or exchangeable for property or shares of any other series or class of our capital stock.
Depositary Shares, Each Representing 1/40th Interest in a Share of Series A Preferred Stock 
General
Each Depositary Share represents a 1/40th ownership interest in a share of Series A Preferred Stock and will be evidenced by depositary receipts. We will deposit the underlying shares of the Series A Preferred Stock with Computershare N.A., acting as depositary (the “Depositary”) pursuant to a deposit agreement among us, the Depositary, and the holders from time to time of the depositary receipts evidencing the Depositary Shares (the “Deposit Agreement”). Subject to the terms of the Deposit Agreement, each holder of a Depositary Share will be entitled, through the Depositary, in proportion to the applicable fraction of a share of Series A Preferred Stock represented by such Depositary Share, to all the rights and preferences of the Series A Preferred Stock represented thereby (including dividend, voting, redemption and liquidation rights). References herein to “holders” of 

Depositary Shares mean those who own Depositary Shares registered in their own names on the books that we or the Depositary maintain for this purpose, and not indirect holders who own beneficial interests in Depositary Shares registered in street name or issued in book-entry form through DTC.
Amendment and Termination of the Deposit Agreement
We may amend the form of depositary receipt evidencing the Depositary Shares and any provision of the Deposit Agreement at any time and from time to time by agreement with the Depositary without the consent of the holders of depositary receipts. However, any amendment that will materially and adversely alter the rights of the holders of depositary receipts will not be effective unless the holders of at least two-thirds of the affected Depositary Shares then outstanding approve the amendment. Every holder of an outstanding depositary receipt at the time any such amendment becomes effective shall be deemed, by continuing to hold such depositary receipts, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby.
We will make no amendment that impairs the right of any holder of Depositary Shares to receive shares of the Series A Preferred Stock and any money or other property represented by those Depositary Shares, except in order to comply with mandatory provisions of applicable law or the rules and regulations of any governmental body, agency, or commission, or applicable securities exchange.
The Deposit Agreement may be terminated:
•if all outstanding Depositary Shares have been redeemed pursuant to the Deposit Agreement;
•if there shall have been a final distribution made in respect of the Series A Preferred Stock in connection with any liquidation, dissolution or winding up of the Company and such distribution shall have been distributed to the holders of depositary receipts representing Depositary Shares pursuant to the terms of the Deposit Agreement; or
•upon the consent of holders of depositary receipts representing in the aggregate not less than two-thirds of the Depositary Shares outstanding.
We may terminate the Deposit Agreement at any time, and the Depositary will give notice of that termination to the holders of all outstanding depositary receipts not less than 30 days before the termination date. In that event, the Depositary will deliver or make available for delivery to holders of Depositary Shares, upon surrender of the depositary receipts evidencing the Depositary Shares, the number of whole or fractional shares of the Series A Preferred Stock as are represented by those Depositary Shares.
Dividends and Other Distributions
Each dividend payable on a Depositary Share will be in an amount equal to 1/40th of the dividend declared and payable on the related share of the Series A Preferred Stock.
The Depositary will distribute any cash dividends or other cash distributions received in respect of the deposited Series A Preferred Stock to the record holders of Depositary Shares relating to the underlying Series A Preferred Stock in proportion to the number of Depositary Shares held by the holders. If we make a distribution other than in cash, the Depositary will distribute any property received by it to the record holders of Depositary Shares entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or that it is not feasible to make a distribution. In that event, the Depositary may, with our approval, sell the property and distribute the net proceeds from the sale to the holders of the Depositary Shares.
Record dates for the payment of dividends and other matters relating to the Depositary Shares will be the same as the corresponding record dates for the Series A Preferred Stock.

The amounts distributed to holders of Depositary Shares will be reduced by any amounts required to be withheld by the Depositary or by us on account of taxes or other governmental charges. The Depositary may refuse to make any payment or distribution, or any transfer, exchange or withdrawal of any Depositary Shares or the shares of the Series A Preferred Stock until such taxes or other governmental charges are paid.
Redemption of Depositary Shares
If we redeem the Series A Preferred Stock represented by the Depositary Shares, the Depositary Shares will be redeemed from the proceeds received by the Depositary resulting from the redemption of the Series A Preferred Stock held by the Depositary. The redemption price per Depositary Share is expected to be equal to 1/40th of the redemption price per share payable with respect to the Series A Preferred Stock (or $25.00 per Depositary Share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date, on the shares of the Series A Preferred Stock.
Whenever we redeem shares of Series A Preferred Stock held by the Depositary, the Depositary will redeem, as of the same redemption date, the number of Depositary Shares representing shares of Series A Preferred Stock so redeemed. If fewer than all of the outstanding Depositary Shares are redeemed, the Depositary will select the Depositary Shares to be redeemed pro rata or by lot. In any case, the Depositary will redeem the Depositary Shares only in increments of 40 Depositary Shares and any integral multiple thereof. The Depositary will provide notice of redemption to record holders of the depositary receipts not less than 30 and not more than 60 days prior to the date fixed for redemption of the Series A Preferred Stock and the related Depositary Shares.
Voting of the Series A Preferred Stock
Because each Depositary Share represents a 1/40th interest in a share of the Series A Preferred Stock, holders of depositary receipts will be entitled to 1/40th of a vote per Depositary Share under those limited circumstances in which holders of the Series A Preferred Stock are entitled to a vote, as described above.
When the Depositary receives notice of any meeting at which the holders of the Series A Preferred Stock are entitled to vote, the Depositary will mail (or otherwise transmit by an authorized method) the information contained in the notice to the record holders of the Depositary Shares relating to the Series A Preferred Stock. Each record holder of the Depositary Shares on the record date, which will be the same date as the record date for the Series A Preferred Stock, may instruct the Depositary to vote the amount of the Series A Preferred Stock represented by the holder’s Depositary Shares. To the extent possible, the Depositary will vote the amount of the Series A Preferred Stock represented by Depositary Shares in accordance with the instructions it receives. We will agree to take all reasonable actions that the Depositary determines are necessary to enable the Depositary to vote as instructed. If the Depositary does not receive specific instructions from the holders of any Depositary Shares representing the Series A Preferred Stock, it will vote all Depositary Shares held by it proportionately with instructions received.
Depositary Agent, Transfer Agent and Registrar
Computershare N.A. is the depositary and transfer agent and registrar for the Depositary Shares. We may, in our sole discretion, remove the Depositary in accordance with the agreement between us and the Depositary; provided that we will appoint a successor depositary who will accept such appointment prior to the effectiveness of the prior depositary’s removal.
Form and Notices
The Series A Preferred Stock will be issued in registered form to the Depositary, and the Depositary Shares will be issued in book-entry form through DTC. The Depositary will forward to the holders of the Depositary Shares all reports, notices, and communications from us that are delivered to the Depositary and that we are required to furnish to the holders of the Series A Preferred Stock.

Other Preferred Stock
Our Certificate of Incorporation authorizes our Board of Directors to create and provide for the issuance of one or more series of Preferred Stock, without the approval of our stockholders. Our Board of Directors or a duly authorized committee thereof can also determine the terms, including the designations, powers, preferences and rights (including conversion, voting and other rights) and the qualifications, limitations or restrictions, of any Preferred Stock.
CERTAIN ANTI-TAKEOVER EFFECTS
Certificate of Incorporation and Bylaws
Our Certificate of Incorporation and Bylaws contain various protective provisions that would have the effect of impeding an attempt to change or remove our Board of Directors or to gain control of our outstanding capital stock.
Our Certificate of Incorporation and Bylaws provide:
•that directors can be removed only upon the vote of the holders of a majority of shares then entitled to votes at an election of directors;
•that we may issue Preferred Stock with such rights, preferences, privileges and limitations as our Board of Directors may, without prior stockholder approval, establish;
•that special meetings of stockholders may only be called by the Chairman of the Board or Directors, the Chief Executive Officer, resolution of a majority of our Board of Directors, or the holders of not less than 50% of the shares of Common Stock then-outstanding; and
•advance notice procedures with regard to the nomination, other than by or at the direction of our Board of Directors or a committee of the Board of Directors, of candidates for election as directors.
Restrictions on Ownership
The BHC Act requires any bank holding company, as defined in the BHC Act, to obtain the approval of the Federal Reserve prior to the acquisition of 5% or more of our Common Stock. 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 Stock under the Change in Bank Control Act. Any holder of 25% or more of our Common Stock, 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 BHC Act.
Delaware General Corporation Law.
Section 203 of the DGCL applies to the Company because it is listed on a national securities exchange. Pursuant to Section 203, with certain exceptions, a Delaware corporation may not engage in any of a broad range of business combinations, such as mergers, consolidations and sales of assets, with an “interested stockholder,” as defined below, for a period of three years from the date that person became an interested stockholder, unless:
•the transaction that results in a person becoming an interested stockholder or the business combination is approved by the board of directors of the corporation before the person becomes an interested stockholder;
•upon consummation of the transaction that results in the stockholder becoming an interested stockholder, the interested stockholder owned 85% or more of the voting stock of the corporation outstanding at the time 

the transaction commenced, excluding shares owned by persons who are directors and also officers and shares owned by certain employee stock plans; or
•at or after the time the person becomes an interested stockholder, the business combination is approved by the corporation’s board of directors and by holders of at least two-thirds of the corporation’s outstanding voting stock, excluding shares owned by the interested stockholder, at a meeting of stockholders.
Under Section 203, an “interested stockholder” is defined as any person, other than the corporation and any direct or indirect majority-owned subsidiary, that is:
•the owner of 15% or more of the outstanding voting stock of the corporation; or
•an affiliate or associate of the corporation and was the owner of 15% or more of the outstanding voting stock of the corporation at any time within the three-year period immediately before the date on which it is sought to be determined whether such person is an interested stockholder.

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