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  Exhibit 10.22    
    


 
  SETTLEMENT AGREEMENT    
    


        This Agreement (the "Agreement"), is entered into this 19th day of April, 2011 (the "Effective Date"), by and
between Maui Land & Pineapple Company, Inc. ("MAUI") and the Pension Benefit Guaranty Corporation, a United States government corporation (the "PBGC"; and, collectively with MAUI, the
"Parties"). 


 
 

WITNESSETH    
    


        WHEREAS, PBGC is a wholly-owned United States government corporation established under
section 4002 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), 29
U.S.C. § 1302 (2006 & Supp. III 2009) to administer the pension plan termination insurance program created by Title IV of ERISA, 29 U.S.C.
§§ 1301-1461; and 


        WHERAS, MAUI is a corporation incorporated under the laws of the state of Hawaii; and 


        WHERAS, MAUI is, and has been at all relevant times, the contributing sponsor (as that term is defined in 29 U.S.C.
§ 1301(a)(13) of the Maui Land & Pineapple Company, Inc. Pension Plan for Bargaining Unit and Hourly Employees ("Pension
Plan"); and 


        WHERAS, the PBGC asserts that MAUI ceased operations on or about December 31, 2009 at its facilities located in Maui, Hawaii, and
as a result, certain employees who are participants in the Plan were separated from employment (the "Cessation of Operations" or the
"Event"); and 


        WHERAS, the PBGC asserts that the Cessation of Operations is an event described in ERISA §4062(e), and that MAUI and any other
members of its controlled group (as defined in ERISA §4001(a)(14) (MAUI or any other such member, a "Controlled Group Member") are therefore
subject to the provisions of ERISA §4063 and liable thereunder to PBGC with respect to the Plan; and 


        WHERAS, PBGC has estimated that MAUI's liability under ERISA §4063(b) as a result of the Event is $5.2 million (the
"Event Liability"); and 


        WHERAS, in lieu of the PBGC attempting to apply the provisions of subsections 4063(b), (c) or (d) of ERISA, 29 U.S.C.
§ 1363(b), (c) and (d), or otherwise enforcing against MAUI such liability that has resulted from the Cessation of Operations, the PBGC and MAUI have reached an understanding
with respect to the Event and such liability, under which MAUI will provide security to PBGC. 



        NOW THEREFORE, MAUI and PBGC, for good and valuable consideration set out herein, the receipt and sufficiency of which are hereby
acknowledged, agree as follows: 


1.     Mortgage Security  


        1.1   To
secure up to $5.2 million of liability under 29 U.S.C. § 1362(a)(1) incurred upon any termination of the Pension Plan under 29 U.S.C.
§ 1341(c) or 29 U.S.C. § 1342 on or before the Agreement Termination Date, MAUI will, on or before the thirtieth (30th) day following the Effective
Date, execute a first lien Mortgage in favor of PBGC (the "PBGC Mortgage") on the real property described in Exhibit A hereto (the
"Mortgaged Property"). 


        1.2.  Following
the Agreement Termination Date (as defined in Section 3.1 below), and at MAUI's sole expense, MAUI will
provide to PBGC a recordable discharge and release of the PBGC Mortgage. PBGC shall promptly execute and record such discharge and release. PBGC agrees, following the Agreement Termination Date, to
execute such other documents as may be necessary to effect and evidence the termination, discharge and release of such PBGC Mortgage. 


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2.     Notice Requirements  


        2.1   During
the term of the Agreement, MAUI will provide notices and information to PBGC as follows: 



        (a)   The
Pension Plan's actuarial valuation report by October 31 of each plan year; 


        (b)   Written
notice no later than ten (10) days after the due date of any quarterly installment or other contribution to the Pension Plan required under 26 U.S.C.
§ 430(j) (a "Required Contribution") that MAUI has failed to timely pay; and 


        (c)   Copies
of all Internal Revenue Service ("IRS") Forms 5310-A on the date filed with the IRS for any
plan merger or consolidation, spinoff, or transfer of plan assets or liabilities to another plan that involves the Pension Plan. In the event that any such Form 5310-A will not be
timely filed with the IRS, MAUI will notify PBGC at least 30 days before any plan merger or consolidation, spinoff, or transfer of plan assets or liabilities to another plan that involves the
Pension Plan. 




3.     Termination of the Agreement  


        3.1   This
Agreement will terminate upon the later of (the "Agreement Termination Date"): 



        (a)   the
fifth anniversary of the effective date of this Agreement (the "Fifth Anniversary"); or 


        (b)   if
an Event of Default (as defined in Section 5.1 below) that has not been waived by the PBGC in writing exists on
the Fifth Anniversary, the date upon which such Event of Default is cured. 




        3.2   Effective
on the Agreement Termination Date and in consideration of the terms, conditions, mutual covenants and agreements set forth herein, the adequacy and sufficiency
of which are hereby acknowledged, the PBGC, on its own behalf, and in every other capacity in which it may now or in the future act, will be deemed to release and forever discharge each Controlled
Group Member, from any claim whatsoever with respect to any and all of such member's liability and/or obligations under sections 4062(e) and/or 4063 of ERISA with regard to the Cessation of
Operations. 


4.     Representations and Warranties  


        4.1   MAUI
hereby represents and warrants to PBGC that each of the following is true and correct as of the Effective Date: 



        (a)   MAUI
has full power and authority to enter into and perform its obligations under the Agreement and to carry out and consummate the transactions contemplated by the
Agreement; 


        (b)   MAUI's
execution, delivery and performance of the Agreement and all other Settlement Documents executed or to be executed by MAUI in connection with the Agreement have
been duly authorized by all necessary corporate action; and 


        (c)   This
Agreement has been duly executed by authorized officers or other representatives of MAUI. This Agreement shall constitute a legal, valid and binding contract and
agreement of MAUI enforceable by PBGC, and only by PBGC, against MAUI in accordance with its terms. 




        4.2   PBGC
hereby represents and warrants to MAUI that each of the following is true and correct as of the Effective Date: 



        (a)   PBGC
has full power and authority to enter into and perform its obligations under the Agreement and to carry out and consummate the transactions contemplated by the
Agreement; 



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        (b)   PBGC's
execution, delivery and performance of the Agreement have been duly authorized by all necessary corporate action and are within PBGC's statutory authorization and
authority; and 


        (c)   This
Agreement shall be duly executed by authorized officers or other representatives of PBGC. This Agreement shall constitute a legal, valid and binding contract and
agreement of PBGC enforceable against PBGC in accordance with its terms. 




5.     Default; Remedies  


        5.1    Event of Default.    Each of the following shall constitute an "Event of
Default" under this Agreement: 



        (a)   MAUI
fails to make any Required Contributions in accordance with the minimum funding standards of ERISA and the Internal Revenue Code (the
"Code"); 


        (b)   MAUI
materially breaches any other covenant, term or condition of this Agreement and, if curable, fails to cure such breach within thirty (30) days after such
breach provided, however, that if the breach cannot by its nature be cured within the thirty (30) day period, but is susceptible to being cured
within a
reasonable time greater than thirty (30) days, then MAUI shall have an additional period (which shall not in any case exceed thirty (30) days, for a maximum total of sixty
(60) days to accept to cure such breach, and within any such additional period the failure to cure the breach shall not be deemed an Event of Default; 


        (c)   Any
representation or warranty made by MAUI in Section 4.1 above is untrue in any material respect as of the
Effective Date; 


        (d)   MAUI
(i) becomes insolvent; or (ii) is unable, or admits in writing its inability to pay debts as they generally mature; or (iii) makes a general
assignment for the benefit of creditors or to an agent authorized to liquidate any of its property; or (iv) makes or sends notice of a bulk transfer; or (v) files or, consents to the
filing against it, of a petition or other papers commencing a proceeding under Title 11 of the United States Code or any similar type of insolvency proceeding ("Insolvency
Proceeding"); or (vi) has an Insolvency Proceeding filed or instituted against it which has not been dismissed within forty-five (45) days after its
commencement, or in which an order for relief has been entered against it, or (vii) applies to a court for appointment of a receiver, trustee or custodian for any of its property; or
(viii) has a receiver, trustee or custodian appointed for any of its property (with or without its consent); 


        (e)   MAUI
dissolves or discontinues (other than on a temporary basis) doing business; 


        (f)    The
Pension Plan terminates under 29 U.S.C. § 1341(c) or 29 U.S.C. § 1342; 


        (g)   The
occurrence of a "default" (as defined therein) under the PBGC Mortgage. 




        5.2    Notice.    Maui shall immediately give written notice to PBGC upon the occurrence of any Event of Default. 



        5.3    General Remedies.    If any Event of Default occurs, then PBGC may take any one or more of the following
actions: 



        (a)   exercise
any or all of the rights and remedies available to it as a secured party under the UCC or any other applicable law, including (but not limited to) the right to
repossess the Mortgaged Property and the right to sell the Mortgaged Property; 



        (b)   foreclose
on the Mortgaged Property non-judicially, to the fullest extent permitted by law, or proceed by a suit or suits at law or in equity to foreclose on
the Mortgaged Property. 



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        5.4    Forbearance.    So long as no Event of Default exists and remains uncured, the PBGC will forbear during the
term of this Agreement from taking any action against MAUI or other Controller Group Member to enforce sections 4062(e) and/or 4063 of ERISA, 29 U.S.C.
§§ 1362(e), 1363, on account of the Cessation of Operations. 


        5.5    Remedies Not Exclusive.    No remedy recited in this Agreement with respect to the occurrence of an Event of
Default shall limit the PBGC in any manner from pursuing after the occurrence of an Event of Default any and all remedies provided under the UCC, ERISA, the Code, or other applicable law. The rights
and remedies provided for in this Agreement or which PBGC may otherwise have at law or in equity shall be distinct, separate, and cumulative. The right and remedies shall not be deemed to be
inconsistent with each other, and none of them, whether or not exercised by PBGC, shall be deemed to be in exclusion of any other. Any two or more of such rights and remedies may be exercised at the
same time, all to the fullest extent permitted by law. 


6.     General Provisions  


        6.1    Compliance with ERISA.    Nothing in this Agreement affects MAUI's obligations to comply with ERISA and the
Code, including, without limitation, MAUI's obligation to make all Required Contributions in accordance with the minimum funding standards of ERISA and the Code. 



        6.2    Limitation of Rights.    This Agreement is intended to be and is for the sole and exclusive benefit of PBGC and
MAUI. Nothing expressed or mentioned in or to be implied from the Agreement gives any person other than PBGC or MAUI any legal or equitable right, remedy, or claim against PBGC or MAUI under or in
respect of this Agreement. 


        6.3    Notices.    All notices, demands, instructions and other communications required or permitted under the
Agreement to any Party shall be in writing and shall be personally delivered or sent by registered, certified, or express mail, postage prepaid, return receipt requested, facsimile (which shall be
immediately followed by the original of such communication), or prepaid overnight delivery service with confirmed receipt, and shall be deemed to be given for purposes of this Agreement on the date
the writing is personally delivered or sent to the intended recipient, or in the case of facsimile, on the date transmitted to the intended recipient. Unless otherwise specified in a notice sent or
delivered in 


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accordance
with the foregoing provisions of this Section, all such notices, demands, instructions and other communications shall be sent to the Parties as indicated below: 

 






			
	To MAUI:	 	Adele Sumida

Controller & Secretary

Maui Land & Pineapple Co., Inc.

870 Haliimaile Road

Makawao, Hawaii 96768-9768

Telephone: (808) 877-3895

Facsimile: (808) 442-1172

asumida@mlpmaui.com
	

 	
 	
Robert Katz

Torkildson, Katz, Moore, Hetherington & Harris

700 Bishop Street, 15th Floor

Honolulu, Hawaii 96813

Telephone: (808) 523-6000

Facsimile: (808) 523-6001

RSK@torkildson.com
	
 To PBGC:	
 	
Department of Insurance Supervision and Compliance

Pension Benefit Guaranty Corporation

1200 K Street, N.W.

Washington, D.C. 20005-4026

Telephone: (202) 326-4070

Facsimile: (202) 842-2643

Gran.Christopher@pbgc.gov
	

 	
 	
Office of the Chief Counsel

Pension Benefit Guaranty Corporation

1200 K Street, N.W.

Washington, D.C. 20005-4026

Telephone: (202) 326-4020

Facsimile: (202) 326-4112

Hansen.Courtney@pbgc.gov and efile@pbgc.gov






 

         6.4    Counterparts.    This Agreement may be executed and delivered (including by facsimile or electronic pdf
transmission) in one or more counterparts and by different Parties on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 


        6.5    Entire Agreement.    This Agreement, including the Mortgage, contains the complete and exclusive statement of
the agreement and understanding by and among the Parties and supersedes all prior agreements, understandings, commitments, representations, communications, and proposals, oral or written, among the
Parties or any of them relating to the subject matter of this Agreement. This Agreement may not be amended, modified, or supplemented except by an instrument in writing executed by the Parties hereto. 


        6.6    No Waivers.    The failure of any Party to enforce a provision of the Agreement shall not constitute a waiver
of such Party's right to enforce that provision of the Agreement. 


        6.7    Headings.    The section and paragraph headings contained in this Agreement are for convenience only and shall
not affect the meaning or interpretation of this Agreement. 


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        6.8    Governing Law.    Except to any extent preempted by federal law, the laws of the State of Hawaii, without
giving effect to Hawaii's rules concerning conflicts of law, shall govern all disputes arising out of or relating to this Agreement. 


        6.9    Jurisdiction; Venue.    Any action, suit or proceeding arising out of or relating to this Agreement, except for
one brought with respect to the Mortgaged Property, shall be brought in the United States District Court for the District of Columbia. 



        6.10    Construction.    The language used in this Agreement shall be deemed to be the language chosen by the Parties
to express their mutual intent, and no rule of strict construction shall be applied against any Party hereto, nor shall any rule of construction that favors a non-draftsman be applied. A
reference to any statute shall be deemed also to refer to all rules and regulations promulgated under the statute, unless the context requires otherwise. 


        6.11    Assignment.    No Party may assign this Agreement in whole or in part, or delegate any of its duties
hereunder, without the express prior written consent of the other Party. Any such assignment or delegation made without such express prior written consent shall be null and void ab initio. 


        6.12    Unenforceable, Invalid Provisions.    If any provision in this Agreement shall be invalid, inoperative or
unenforceable as applied in any particular case, this shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance. If any provision
of this Agreement shall be invalid, inoperative or unenforceable in all cases, this shall not have the effect of rendering any other provision of the Agreement invalid, inoperative, or unenforceable.
The invalidity of any portion of this Agreement shall not affect the remaining portions of the Agreement. 


        6.13    Inapplicability to Pension Plan.    This Agreement is not a document or instrument governing the Pension Plan,
nor does anything in this Agreement amend, supplement or derogate from the documents and instruments governing the Pension Plan. Further, nothing in this Agreement alters, amends or otherwise modifies
the operation or administration of the Pension Plan. 


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        IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered by their respective duly authorized officers
as of the Effective Date. 

 






							
	 MAUI LAND & PINEAPPLE COMPANY, INC.	 	 PENSION BENEFIT GUARANTY CORPORATION
	
 By:	
 	
/s/ RYAN CHURCHILL






  Ryan Churchill	
 	
By:	
 	
/s/ ROBERT BACON






  Robert Bacon
	
 Title:	
 	
President & Chief Operating Officer	
 	
Title:	
 	
Acting Director, Department of Insurance Supervision and Compliance
	
 Date:	
 	
April 26, 2011	
 	
Date:	
 	
April 19, 2011
	
 By:	
 	
/s/ ADELE H. SUMIDA






  Adele H. Sumida	
 	

 	
 	

 
	
 Title:	
 	
Controller & Corporate Secretary	
 	

 	
 	

 
	
 Date:	
 	
April 26, 2011	
 	

 	
 	

 



 

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Exhibit 10.22


SETTLEMENT AGREEMENT

WITNESSETH