Sealaska Corporation - Shareholders

Shareholders

At incorporation, Sealaska enrolled 15,782 Alaska Natives, each of whom received 100 shares of Sealaska stock. Approximately 1,800 additional Alaska Natives have since received Sealaska stock through inheritance of shares or gifting. As an ANCSA corporation, Sealaska has no publicly traded stock and its shares cannot legally be sold.

Sealaska shareholders will vote on June 23, 2007 whether to enroll qualified descendants of original shareholders by issuing them 100 shares of life estate stock in Sealaska. If the proposal passes, about 5,500 additional shareholders could be immediately enrolled, with additional descendants being enrolled when they reach age 18. However, unlike shares of original shareholders, the new shares would expire on the descendant's death and could not be willed or gifted. To be eligible, descendants must be children or grandchildren of original Sealaska shareholders, must be of at least one-quarter Alaska Native descent, and must not be a member of any other regional corporation unless through inheritance or gift. One effect of passage would be to dilute the corporate dividends and voting power of current shareholders. Shareholders will also vote whether to grant senior shareholders an additional 100 shares (nonvoting life estate) and whether to give 100 shares of life estate stock to eligible Alaska Natives born before 1972 who were not enrolled in Sealaska ("leftouts").

Sealaska has established a Permanent Fund, comprising investments in stocks, bonds, real estate and private equity funds, as a source of shareholder dividends. At the end of the 2005 fiscal year, it was valued at $90 million.