Document:

Guarantee Agreement Black River Energy and HELCO (TECO)

 HECO Exhibit 10.7(f) 
  
 EXHIBIT A 
  
 GUARANTEE AGREEMENT 
  
 between 
  
 BLACK RIVER ENERGY, LLC 
  
 and 
  
 HAWAII ELECTRIC LIGHT COMPANY, INC. 
  
 THIS GUARANTEE AGREEMENT (“Guarantee”) is made this 15 day of July
2004 by and between HAWAII ELECTRIC LIGHT COMPANY, INC., a Hawaii corporation (“HELCO”), with principal offices in Hilo, Hawaii, and BLACK RIVER ENERGY, LLC, a Delaware limited liability company (“Guarantor”), with principal
offices in Charlotte, North Carolina. 
  
 W I
T N E S S E T H: 
  
 WHEREAS, HELCO is a regulated public utility engaged in the business of generation, transmission and distribution of electric power to customers on the island of Hawaii, Hawaii; and 
  
 WHEREAS, TPS Hawaii, Inc., a Florida corporation (“TPS Hawaii”),
owns 50% of the outstanding interests of Hamakua A, LLC, a Delaware limited liability company (“Hamakua A”), which owns a 98% limited partner interest in Hamakua Energy Partners L.P., a Hawaii limited liability partnership
(“HEP”), and TPS Hamakua, Inc., a Florida corporation (“TPS Hamakua”) owns a 1% general partner interest in HEP; and 
  
 WHEREAS, HEP is party to that certain Power Purchase Agreement, dated as of October 22, 1997, by and between HEP and HELCO, as amended (the
“PPA”) ; and 
  
 WHEREAS, TPS Hawaii and TPS Hamakua
have entered into an acquisition agreement pursuant to which TPS Hawaii and TPS Hamakua have agreed to sell all of their outstanding equity interests in each of HEP and Hamakua A (the “TPS Interests”) to BR LANDING, LLC, a Delaware limited
liability company (“Buyer”) and a wholly-owned subsidiary of Guarantor, which in turn is a wholly-owned subsidiary of EIF Hamakua, LLC, a Delaware limited liability company; and 
  
 WHEREAS, TECO Energy, Inc. a Florida corporation, (“TECO”), the ultimate parent company of TPS Hawaii and TPS
Hamakua, has guaranteed HEP’s performance under the PPA pursuant to a Guarantee Agreement, dated November 8, 1999, by and between TECO and HELCO (the “TECO Guarantee”); and 
  
 WHEREAS, under the PPA, HELCO has certain rights of first refusal, or similar preference rights of purchase, that may be
triggered or otherwise activated in the event that HEP should sell or transfer its interests in the Facility (the “HELCO Rights”). 

 Although they do not believe that the transfer of the TPS Interests to Buyer will trigger the HELCO Rights or any
requirement to obtain HELCO’s consent, TECO, TPS Hawaii, TPS Hamakua, HEP, Black River Energy and EIF Hamakua, LLC would like to obtain HELCO’s acknowledgement and consent to the transactions described herein; and 
  
 WHEREAS, as part of the consideration to them for the sale of the TPS
Interests to Buyer, TECO, TPS Hawaii and TPS Hamakua would like to obtain from HELCO the termination of the TECO Guarantee and the release of TECO thereunder; and 
  
 WHEREAS, although HELCO does not necessarily concur with the conclusion that the HELCO Rights will not be triggered by the
transfer of the TPS Interests to Buyer, HELCO is willing to waive the HELCO Rights with respect to such sale, to acknowledge and consent to such sale, and to terminate the TECO Guarantee and release TECO thereunder, all on the terms and conditions
set forth in that certain Consent and Agreement dated on or about the date hereof (the “Consent and Agreement”); and 
  
 WHEREAS, among the terms and conditions set forth in the Consent and Agreement is the requirement that Guarantor enter into this Guarantee with HELCO;

  
 WHEREAS, to induce HELCO to enter into the Consent and
Agreement, Guarantor is willing to enter into this Guarantee with HELCO; and 
  
 WHEREAS, in connection with Guarantor’s purchase in May 2004 of the interests in HEP and Hamakua A theretofore owned by one or more entities affiliated with J.A. Jones, Inc., a Delaware corporation, Guarantor
entered into a guarantee on similar terms dated May 26, 2004 (the “Jones Replacement Guarantee”). 
  
 NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Guarantor hereby represents, warrants, covenants and agrees with HELCO as follows: 
  
 1. Definitions. All capitalized terms used herein and not defined herein, and which are defined in, or by reference in, the PPA, as the PPA may be
amended from time to time in accordance with its terms, shall have the meanings specified in the PPA. The term “Letter of Credit” shall have the meaning specified in the Consent and Agreement. 
  
 2. Guarantee and Letter of Credit. 
  
 a. Subject to the limitations contained in Section 3, and
without amending or modifying the Jones Replacement Guarantee in any way, Guarantor hereby guarantees to HELCO the due and punctual payment, as and when due, of fifty percent (50%) (the “Proportionate Share”) of all sums payable by HEP to
HELCO as the result of the non-performance of obligations under the PPA or other events or circumstances during the term of the PPA. This Guarantee is in addition to the Jones Replacement Guarantee and constitutes a separate and 
  
  

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 additional obligation of Guarantor, with respect to any sums payable by HEP to HELCO under the PPA. In no
event shall HELCO have recourse against Guarantor, pursuant to this Guarantee, in excess of the lesser of its Proportionate Share of HEP’s payment obligations or the limits set forth in Section 3 below. 
  
 b. This Guarantee is a primary and original obligation of
Guarantor and is an absolute, unconditional, continuing and irrevocable guarantee and is in no way conditioned or contingent upon any attempt to collect payment from or proceed against HEP except as stated otherwise herein. This Guarantee shall
remain in full force and effect until the earlier to occur of the following events: (i) all of HEP’s obligations under the PPA including, without limitation, any obligations for breach thereof, have been fulfilled, (ii) this Guarantee has been
substituted for in accordance with Section 21.1 of the PPA or (iii) the termination of the PPA; provided that obligations arising prior to such termination date shall survive such termination. Any notice required to be given by HELCO to HEP under
the PPA shall also be given by HELCO to Guarantor at: 
  
 Black River Energy, LLC 
 6000 Fairview 
 Charlotte, N.C. 28287 
 Attention: Mr. William Garnett 
 Telephone: (704) 553-3243 
 Facsimile: (704) 553-3037 
  
 (or such other address as Guarantor may designate in writing to HELCO). Guarantor shall have the same opportunity to cure defaults by HEP under the PPA as
HEP shall have; provided, however, that no time period provided in the PPA for cure shall be extended or start anew by virtue of this sentence. 
  
 c. In the event that the PPA shall be terminated as a result of the rejection or disaffirmance thereof by any trustee, receiver or
liquidating agency of HEP or any of its properties, in any assignment for the benefit of creditors or any bankruptcy, insolvency, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar proceeding,
Guarantor’s obligations hereunder shall continue to the same extent as if such PPA had not been so rejected or disaffirmed. Guarantor shall, and does hereby waive all rights and benefits which might relieve, in whole or in part, Guarantor from
the performance of its duties and obligations hereunder by reason of any such proceeding, and Guarantor agrees that it shall be liable for all sums and obligations guaranteed by this Guarantee without regard to any modification, limitation or
discharge of the liability of HEP that may result from any such proceeding. 
  
 d. As a material obligation of Guarantor under this Guarantee, Guarantor shall, from the date first written above through the thirtieth (30th) day 
  
  

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 following the period this Guarantee is to remain in full force and effect pursuant to the second sentence
of Section 2(b) hereof, maintain or cause to be maintained in full force and effect a Letter of Credit as required by the Consent and Agreement, and shall, no later than thirty (30) days prior to the expiration of the term of any Letter of Credit
then in effect, replace or cause to be replaced such Letter of Credit by delivery to HELCO of a newly issued Letter of Credit, and any failure to maintain such Letter of Credit in full force and effect as aforesaid, including but not limited to any
failure to replace a Letter of Credit no later than thirty (30) days prior to the expiration of the term thereof, shall constitute grounds for HELCO to draw the full amount of the Letter of Credit regardless of whether or not HELCO would then be
permitted to demand payment from Guarantor under this Guarantee. Any such amounts drawn on the Letter of Credit pursuant to the preceding sentence shall be (i) held by HELCO, as security for Guarantor’s performance of its obligation to maintain
the Letter of Credit as aforesaid, until such time as a new Letter of Credit is issued and delivered to HELCO, and (ii) upon the issuance and delivery of a new Letter of Credit as aforesaid, paid to Guarantor or its designee without interest.

  
 3. Guarantee Limits. Guarantor’s obligations under
Section 2(a) of this Guarantee in the aggregate shall be limited to the amounts shown below with respect to sums as payable by HEP to HELCO pursuant to the PPA as the result of events or circumstances during the period shown opposite such amounts:

  

				
	 Period

	  	Amount

	 From Phase 2 In-Service Date to End of Term
	  	$	1,500,000

  
 4. Generally.
Guarantor shall not be liable under Section 2 of this Guarantee to any extent greater than 50% of the liability it would have incurred if it had been the contracting party (in place of HEP) under the PPA, and all the representations and warranties
made by Guarantor in Section 5 hereof in respect of this Guarantee were true in respect of the PPA as well as the Guarantee and notwithstanding any bankruptcy or insolvency of the HEP. In addition, Guarantor shall have no obligation under Section
2(a) of this Guarantee for any claim for payment, performance or otherwise attributable to events or circumstances during the period prior to the Phase 2 In-Service Date, not asserted by HELCO in writing within one hundred eighty (180) days after
the Phase 2 In-Service Date. 
  
 5. Representations and
Warranties. Guarantor represents and warrants as follows: 
  
 a. Guarantor has full power, authority and legal right to execute and deliver and perform its obligations under this Guarantee. This Guarantee has been duly executed and delivered by Guarantor and constitutes a legal,
valid and 
  
  

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 binding obligation of Guarantor, enforceable in accordance with its terms, except to the extent that such
enforcement may be limited by any bankruptcy, reorganization, insolvency, moratorium or similar laws affecting generally the enforcement of creditors’ rights from time to time in effect and general principles of equity. 
  
 b. No consent, authorization or approval of, or filing with,
any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or has been required in respect of Guarantor in connection with the execution, delivery or performance by
Guarantor of this Guarantee, or the compliance by Guarantor with any of the remedies and provisions hereof. 
  
 c. The execution and delivery of, and performance by Guarantor of its obligations under this Guarantee will not result in a violation of,
or be in conflict with, any provision of the articles of organization or the operating agreement of Guarantor, or result in a violation of, or be in conflict with, or constitute a default or any event which would, with notice or lapse of time, or
both, become a default under, any mortgage, indenture, contract, agreement or other instrument to which Guarantor is a party or by which it or its property is bound, or result in a violation of, or be in conflict with, or result in a breach of any
term or provision of any judgment, order, decree or award of any court, arbitrator or governmental or public instrumentality binding upon Guarantor or its property, which individually or in the aggregate would materially adversely affect
Guarantor’s ability to perform its obligations under this Guarantee. 
  
 d. Guarantor is not in default, and no conditions exists which, with notice or lapse of time, or both, would constitute a default by Guarantor under any mortgage, loan agreement, deed or trust, indenture or other
agreement with respect thereto, evidence of indebtedness or other instrument of a material nature, to which it is party or by which it is bound, or in violation of, or in default under, any rule, regulation, order, writ, judgment, injunction or
decree of any court, arbitrator or federal, state, municipal or other governmental authority, commission, board, bureau, agency, or instrumentality, domestic or foreign, which individually or in the aggregate would materially adversely affect
Guarantor’s ability to perform its obligations under this Guarantee. 
  
 e. There is no action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any court, public board or body, pending against Guarantor, or of which Guarantor has otherwise received official
notice, or which to the knowledge of Guarantor is threatened against Guarantor, wherein an adverse decision, ruling or finding would have a material adverse effect on the Guarantor’s financial position or its ability to perform its obligations
under this Guarantee. 
  

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 f. All agreements, representations and warranties contained herein or made in writing by
or on behalf of Guarantor in connection with the transaction contemplated hereby shall survive the execution and delivery of this Guarantee. 
  
 6. Notice. Guarantor shall give written notice to HELCO and HEP within ten (10) days after (i) the occurrence of any event or circumstance that
results in any of the representations and warranties made by Guarantor in Section 5 ceasing to be accurate, or (ii) the occurrence, with respect to Guarantor, of any of the events specified in paragraphs (10) or (11) of Section 7.1A of the PPA as
constituting an Event of Default upon the occurrence thereof with respect to HEP. Such notice shall describe, with reasonable particularity, the event or circumstances that has caused such result and shall specify the effect thereof on all
representations and warranties of Guarantor that are affected thereby. 
  
 7. Miscellaneous. 
  
 a.
Severability. If any term or provision of this Guarantee or the application thereof to any person, entity or circumstance shall to any extent be invalid or unenforceable, the remainder of this Guarantee, or the application of such term or
provision to persons, entities or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Guarantee shall be valid and enforceable to the fullest extent permitted
by law. 
  
 b. No Waiver. Except as
specifically provided otherwise herein, the failure of either party to enforce at any time any of the provisions of this Guarantee, or to require at anytime performance by the other party of any of the provisions thereof, shall in no way be
construed to be a waiver of such provision, nor in any way to affect the validity of this Guarantee or any part hereof, or the right of such party thereafter to enforce every such provision. 
  
 c. Modification. No modification or waiver of all or
any part of this Guarantee shall be valid unless it is reduced to writing and signed by both parties. 
  
 d. Governing Law and Interpretation. Interpretation and performance of this Guarantee shall be in accordance with, and shall be
controlled by, the laws of the State of Hawaii, other than the laws thereof that would require reference to the laws of any other jurisdiction. 
  
 e. Counterparts. This Guarantee may be executed in several counterparts and all such executed counterparts shall constitute one
agreement, binding on both parties thereto, notwithstanding that both parties may not be signatories to the original or the same counterpart. 
  

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 f. Successors and Assigns. This Guarantee shall be binding upon Guarantor and its
successors and assigns and all persons claiming under or through Guarantor or any such successor or assigns, and shall inure to the benefit of, and be enforceable by, HELCO. 
  
 g. Consolidation. In the event that HELCO brings an action to enforce this Guarantee during the
pendency of any proceeding (arbitration or otherwise) between HELCO and HEP, Guarantor shall have the option to join such enforcement action with any such pending proceeding. Moreover, Guarantor shall have the option to join any such proceeding
first brought against Guarantor with any subsequent proceeding brought against HEP. In each of the cases described above, such joinder option shall extend until such time as a final judgment is rendered in the relevant proceeding. 
  
 IN WITNESS WHEREOF, HELCO and Guarantor have caused this Guarantee to be
executed by their respective duly authorized officers as of the date first above written. 
  

							
	 HELCO:
	 	 GUARANTOR:

		
	 HAWAII ELECTRIC LIGHT COMPANY, INC.
	 	 BLACK RIVER ENERGY, LLC

				
	 By
	 	 /s/ Richard A. von Gnechten

	 	 By
	 	 /s/ William A. Garnett

	 Name:
	 	 Richard A. von Gnechten
	 	 Name:
	 	 William A. Garnett

	 Its:
	 	 Financial Vice President
	 	 Its:
	 	 President

				
	 By
	 	 /s/ Lorie Ann Nagata

	 	 By
	 	  

	 Name:
	 	 Lorie Ann Nagata
	 	 Name:
	 	 
	 Its:
	 	 Treasurer
	 	 Its:
	 	 

  

 -7-HEI 1990 Nonemployee Director Stock Plan

 HEI Exhibit 10.14 
  
 HAWAIIAN ELECTRIC INDUSTRIES, INC. 
  

1990 Nonemployee Director Stock Plan 
  
 As Amended and Restated: March 8, 2005 
  
 1. Purposes of the Plan 
  
 The purposes of this Hawaiian Electric Industries, Inc. 1990 Nonemployee Director Stock Plan are to provide participating directors with additional incentives to improve
the Company’s performance by increasing the level of stock owned by such nonemployee directors to reinforce the participating directors’ role in enhancing shareholder value, and to provide an additional means of attracting and retaining
such nonemployee directors through the issuance of Common Stock under the Plan as compensation to Nonemployee Directors. As amended and restated herein, this Plan incorporates all amendments effective on or before May 1, 2002, including provisions
formerly memorialized in the Hawaiian Electric Industries, Inc. 1999 Nonemployee Company Director Stock Grant Plan, which is hereby superceded. 
  
 2. Definitions 
  
 When used herein, the following terms shall have the respective meanings set forth below: 
  
 (a) “Annual Retainer” means the annual fee payable to all Nonemployee Company Directors and Nonemployee Participating Company
Directors as provided in Section 6 below (exclusive of any expense reimbursements). 
  
 (b) “Annual Meeting of Shareholders” means the annual meeting of shareholders of the Company, or any Participating Company, at which directors of the Company or the Participating Company, as the case may be, are elected.

  
 (c) “Board” means the Board of Directors of the Company. 

 
 (d) “Committee” means the Nominating and Corporate Governance Committee of the
Board or such other committee appointed from time to time by the Board to administer the Plan in accordance with Section 4(a) hereof. 
  
 (e) “Common Stock” means the common stock, without par value, of the Company. 
  
 (f) “Company” means Hawaiian Electric Industries, Inc., a Hawaii corporation, and any successor corporation. 
  
 (g) “Employee” means any officer or employee of the Company or any of its direct or
indirect subsidiaries or affiliates (whether or not such subsidiary or affiliate participates in the Plan). 
  
 (h) “Nonemployee Company Director” means any person who is elected or appointed to the Board of Directors of the Company and who is not an employee. 

 (i) “Nonemployee Participating Company Director” means any person who is elected or appointed to the Board of
Directors of any one or more Participating Companies and who is not an Employee. 
  
 (j) “Participating Company” means any direct or indirect subsidiary or affiliate of the Company whose participation in the Plan has been approved by the Board. 
  
 (k) “Plan” means the Company’s 1990 Nonemployee Director Stock Plan, as amended and restated as set forth herein, as it may
be further amended from time to time. 
  
 (l) “Stock Payment” means the
grant of shares of Common Stock to Nonemployee Company Directors or Nonemployee Participating Company Directors for services rendered as a director of the Company or a Participating Company, as provided in Section 7 hereof. 
  
 3. Shares of Common Stock Subject to the Plan 
  
 Subject to adjustment as provided in Section 9 below, the maximum aggregate number of shares
of Common Stock that may be issued under the Plan, when taken together with any shares ever granted under the provisions of the Hawaiian Electric Industries, Inc. 1999 Nonemployee Company Director Stock Grant Plan, is 200,000 shares. The Common
Stock to be issued under the Plan will be made available from authorized but unissued shares of Common Stock, and the Company shall set aside and reserve for issuance under the Plan said number of shares. 
  
 4. Administration of the Plan 
  
 (a) The Plan will be administered by the Committee, which will consist of three or more
Nonemployee Company Directors.. Members of the Committee need not be members of the Board. The Company shall pay all costs of administration of the Plan. 
  
 (b) Subject to the express provisions of the Plan, the Committee has and may exercise such powers and authority of the Board as may be necessary or appropriate for the
Committee to carry out its functions under the Plan. Without limiting the generality of the foregoing, the Committee shall have full power and authority (i) to determine all questions of fact that may arise under the Plan, (ii) to interpret the Plan
and to make all other determinations necessary or advisable for the administration of the Plan, and (iii) to prescribe, amend, and rescind rules and regulations relating to the Plan, including, without limitation, any rules which the Committee
determines are necessary or appropriate to ensure that the Company, each Participating Company and the Plan will be able to comply with all applicable provisions of any federal, state or local law, including securities laws and laws relating to the
withholding of tax. All interpretations, determinations, and actions by the Committee will be final, conclusive, and binding upon all parties. Any action of the Committee with respect to the administration of the Plan shall be taken pursuant to a
majority vote at a meeting of the Committee (at which members may participate by telephone) or by the unanimous written consent of its members. 
  

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 (c) Neither the Company, nor any Participating Company, nor any representatives, employees or agents of the Company or
any Participating Company, nor any member of the Board or the Committee or any designee thereof will be liable for any damages resulting from any action or determination made by the Board or the Committee with respect to the Plan or any transaction
arising under the Plan or any omission in connection with the Plan in the absence of willful misconduct or gross negligence. 
  
 5. Participation in the Plan 
  
 (a) All Nonemployee Company Directors and Nonemployee Participating Company Directors shall participate in the applicable provisions of the Plan, subject to the
conditions and limitations of the Plan, so long as they remain eligible to participate in the Plan. 
  
 (b) Nonemployee Company Directors and Nonemployee Participating Company Directors shall be eligible for Annual Retainers pursuant to the terms of Section 6 of the Plan and for Stock Payments pursuant to the terms of
Section 7 of the Plan. 
  
 6. Determination of
Nonemployee Directors’ Annual Retainers 
  
 The Committee shall meet
annually to determine the Annual Retainer for all Nonemployee Directors, subject to approval by the Board. Unless there are material changes in the duties of a Nonemployee Company Director or a Nonemployee Participating Company Director during the
course of any calendar year, the Annual Retainer shall not be determined more than once each calendar year. The Annual Retainer shall be paid to each Nonemployee Company Director and each Nonemployee Participating Company Director by the respective
company for which the person serves as a director. The Annual Retainer shall be paid at such times and in such manner as may be determined by the Board or the Committee. 
  
 7. Determination of Nonemployee Directors’ Stock Payments 
  
 (a) Each Nonemployee Company Director who serves in that capacity immediately following the
date of the Annual Meeting of Stockholders of the Company shall receive, in addition to the Annual Retainer payable to such Nonemployee Company Director, a Stock Payment equal to one thousand four hundred (1,400) shares of Common Stock for serving
as a Nonemployee Company Director (two thousand (2,000) shares in the case of the first Stock Payment to a Nonemployee Company Director pursuant to this sentence). Each Nonemployee Participating Company Director (who is not also a director of the
Company) who serves in that capacity immediately following the date of the Annual Meeting of Stockholders of one or more Participating Companies shall receive, in addition to the Annual Retainer payable to such Nonemployee Participating Company
Director, a Stock Payment equal to one thousand (1,000) shares of Common Stock for serving as a Nonemployee Participating Company Director. Each Director who during any calendar year becomes a Nonemployee Company Director or Nonemployee
Participating Company Director for the first time, other than at the Annual Meeting of Stockholders (whether by election or appointment as a director of the Company or a Participating Company), shall receive, in addition to any Annual Retainer
payable, a Stock Payment equal to two thousand (2,000) shares of Common Stock (in the case of the Company) or 

  

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one thousand (1,000) shares of Common Stock (in the case of a Participating Company), for serving as a Nonemployee Company Director or Nonemployee
Participating Company Director, as the case may be. Such Stock Payments shall be paid by the Company as soon as practicable following the date such director is first elected or appointed to the Board of Directors of the Company or the Board of
Directors of a Participating Company, as the case may be. 
  
 (b) No Nonemployee
Company Director or Nonemployee Participating Company Director shall be required to forfeit or otherwise return to the Company any shares of Common Stock issued to him or her as a Stock Payment pursuant to the Plan notwithstanding any change in
status of such director which renders him or her ineligible to continue as a participant in the Plan. 
  
 8. Shareholder Rights 
  
 (a) Nonemployee Company Directors and Nonemployee Participating Company Directors shall not be deemed for any purpose to be or have rights as shareholders of the Company
with respect to any shares of Common Stock except as and when such shares are issued and then only from the date of the certificate therefore. No adjustment shall be made for dividends or distributions or other rights for which the record date
precedes the date of such stock certificate. 
  
 (b) Subject to the provisions of
Section 8(a) above, Nonemployee Company Directors and Nonemployee Participating Company Directors will have all rights of a shareholder with respect to Common Stock issued, including the right to vote the shares and receive all dividends and other
distributions paid or made with respect thereto. 
  
 9. Adjustment for Changes in Capitalization 
  
 If the outstanding
shares of Common Stock of the Company are increased, decreased, or exchanged for a different number or kind of shares or other securities, or if additional shares or new or different shares or other securities are distributed with respect to such
shares of Common Stock or other securities, through merger, consolidation, sale of all or substantially all of the property of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split,
combination of shares, rights offering, distribution of assets or other distribution with respect to such shares of Common Stock or other securities or other change in the corporate structure or shares of Common Stock, the maximum number of shares
and/or the kind of shares that may be issued under the Plan may be appropriately adjusted by the Committee. Any determination by the Committee as to any such adjustment will be final, binding, and conclusive. The maximum number of shares issuable
under the Plan as a result of any such adjustment shall be rounded up to the nearest whole share. 
  
 10. Continuation of Director or Other Status 
  
 Nothing in the Plan or in any instrument executed pursuant to the Plan or any action taken pursuant to the Plan shall be construed as creating or constituting evidence of
any agreement or understanding, express or implied, that the Company or any other Participating Company, as the case may be, will retain a Nonemployee Company Director or Nonemployee Participating Company Director as a director or in any other
capacity for any period of time or at a particular 
  

 -4- 

 retainer or other rate of compensation, as conferring upon any director any legal or other right to continue as a
director or in any other capacity, or as limiting, interfering with or otherwise affecting the right of the Company or a Participating Company to terminate a director in his or her capacity as a director or otherwise at any time for any reason, with
or without cause, and without regard to the effect that such termination might have upon him or her as a participant under the Plan. 
  
 11. Compliance with Government Regulations 
  
 Neither the Plan nor the Company shall be obligated to issue any shares of Common Stock pursuant to the Plan at any time unless and until all applicable requirements
imposed by any federal and state securities and other laws, rules, and regulations, by any regulatory agencies or by any stock exchanges upon which the Common Stock may be listed have been fully met. As a condition precedent to any issuance of
shares of Common Stock and delivery of certificates evidencing such shares pursuant to the Plan, the Board or the Committee may require a Nonemployee Company Director or Nonemployee Participating Company Director to take any such action and to make
any such covenants, agreements and representations as the Board or the Committee, as the case may be, in its discretion deems necessary or advisable to ensure compliance with such requirements. The Company shall in no event be obligated to register
the shares of Common Stock issued or issuable under the Plan pursuant to the Securities Act of 1933, as now or hereafter amended, or to qualify or register such shares under any securities laws of any state upon their issuance under the Plan or at
any time thereafter, or to take any other action in order to cause the issuance and delivery of such shares under the Plan or any subsequent offer, sale or other transfer of such shares to comply with any such law, regulation or requirement.
Nonemployee Company Directors and Nonemployee Participating Company Directors are responsible for complying with all applicable federal and state securities and other laws, rules and regulations in connection with any offer, sale or other transfer
of the shares of Common Stock issued under the Plan or any interest therein including, without limitation, compliance with the registration requirements of the Securities Act of 1933, as amended (unless an exemption therefrom is available), or with
the provisions of Rule 144 promulgated thereunder, if available, or any successor provisions. 
  
 12. Nontransferability of Rights 
  
 No Nonemployee Company Director or Nonemployee Participating Company Director shall have the right to assign the right to receive any Stock Payment or any other right or
interest under the Plan, contingent or otherwise, or to cause or permit any encumbrance, pledge or charge of any nature to be imposed on any such payment (prior to the issuance of stock certificates evidencing such Stock Payment) or any such right
or interest. 
  
 13. Amendment and Termination of
Plan 
  
 (a) The Board will have the power in its discretion, to amend, suspend
or terminate the Plan at any time. No such amendment will, without approval of the shareholders of the Company: 
  

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 (i) Change the class of persons eligible to receive Stock Payments under the Plan or
otherwise modify the requirements as to eligibility for participation in the Plan; or 
  
 (ii) Increase the number of shares of Common Stock which may be issued under the Plan (except for adjustments as provided in Section 9
hereof). 
  
 (b) No amendment, suspension or termination of the Plan will, without
the consent of the Nonemployee Company Director or Nonemployee Participating Company Director, alter, terminate, impair, or adversely affect any right or obligations under any Stock Payment previously granted under the Plan to such Participant,
unless such amendment, suspension or termination is required by applicable law. 
  
 (c) Notwithstanding the foregoing, the Board may, without further action by the shareholders of the Company, amend the Plan or modify Stock Payments under the Plan (i) in response to changes in securities or other laws, or rules,
regulations or regulatory interpretations thereof, applicable to the Plan, or (ii) to comply with stock exchange rules or requirements. 
  
 14. Governing Law 
  
 The laws of the State of Hawaii shall govern and control the interpretation and application of the terms of the Plan. 
  
 15. Effective Date and Duration of the Plan 
  
 The Plan, as amended and restated herein, will become effective as of March 8, 2005. Unless
previously terminated by the Board, the Plan will terminate on April 27, 2010. 
  

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