Document:

Exhibit
10.5

 

CHANGE
OF TERMS TO LINE OF CREDIT

 

April 21, 2010

 

American
Wagering, Inc. and Subsidiaries

John Salerno

675
Grier Drive

Las
Vegas, Nevada 89119

 

Re:  Extending the maturity date of the April 21,
2008 Guaranty Agreement and Line of Credit

 

Dear  John:

 

We are pleased to confirm
that Victor Salerno (“Salerno”)
have approved a line of credit (the “Line of Credit”) to American Wagering, Inc.
and its subsidiaries (the “Borrower”) on the following terms and conditions:

 

Borrower: American Wagering, Inc. and subsidiaries

 

Amount: $1,000,000

 

Purpose: Commercial
investment needs of the Borrower

 

Type: A line of credit
available November 7, 2007 through February 1, 2012, unless earlier
terminated by the Borrower.  Advances
will be made available at the request of the Borrower (“Advances”). The
outstanding amount of all Advances shall be payable on February 1, 2012.

 

Interest: At a rate per
annum which at all times shall equal ten percent (10%) simple interest per
annum.

 

Interest will be calculated
on the basis of a 360-day year for the actual number of days elapsed. Interest
on Advances will be payable in arrears on the last day of each month.

 

Advances: Prior to any
Advance, the Borrower shall submit to Salerno a written description of the
intended use of such Advance. In addition, for each Advance equal to or greater
than Five Thousand Dollars ($5,000),
Salerno shall have the additional right, in its sole discretion, to approve the
use of such Advance. Advances shall be in the minimum amount of Five Thousand Dollars ($5,000) and
integral multiples thereof.

 

Note: Advances under the
Line of Credit shall be evidenced by a revolving line of credit promissory note
(the “Note “) payable to the order of Salerno. The Borrower acknowledges that,
in the absence of manifest error, the actual crediting of the amount of any
Advance hereunder to an account of the Borrower shall constitute presumptive
evidence that such Advance was made hereunder, and Salerno’ records with
respect to Advances under the Note shall constitute presumptive evidence of
principal amounts outstanding, advanced and repaid from time to time and at any
time under the Line of Credit.

 

Repayments: Repayments of
Advances may be made to Salerno without premium, penalty or other fees at any
time in the minimum amount of One
Dollar ($1) or integral multiples thereof. Advances shall be repaid at
any time and to the extent that they exceed the maximum amount of the Line of
Credit available hereunder.

 

 

Conditions Precedent: The
obligation of Salerno to make the first Advance under this Line of Credit will
not arise until all of the following documents in form and substance
satisfactory to Salerno have been received by Salerno:

 

A) The Note; and

 

B) Such other documents as
Salerno may reasonably request.

 

Conditions to Utilization:
Advances shall be made at the request of the Borrower so long as the Borrower’s
representations and warranties continue to be true and correct in all material
respects and no Event of Default, or event, which alone or with the giving of
notice, or the passage of time, or both, would constitute an Event of Default,
has occurred hereunder. The Borrower’s request for any Advance shall constitute
a certification by the Borrower that the representations and warranties
contained herein shall be true and correct, and no event shall have occurred
and be continuing which alone or with the giving of notice, or the passage of
time, or both, would constitute an Event of Default hereunder.

 

Representations and
Warranties: The Borrower represents and warrants that:

 

A) The Borrower has full
legal right to borrow in the manner and on the terms of this Agreement and the
Note.

 

B) The execution, delivery
and performance of this Agreement, the Note, and any other documents delivered
or to be delivered by the Borrower to Salerno,

 

(i) do not require any
approval or consent of, or filing with, any governmental agency or entity;

 

(ii) do not and will
not

 

(a) result in, or
require, the creation or imposition of any mortgage, deed of trust, pledge,
lien, security interest or other charge or encumbrance of any nature on any
property now owned or hereafter acquired by the Borrower, except as provided in
this Agreement.

 

C) This Agreement and the
Note are valid and are legally enforceable against the Borrower in accordance
with their terms.

 

D) The financial statements
of  AWI as at year ending January 31
of each year (previously delivered by the Borrower to Salerno) have been
prepared in accordance with generally accepted accounting principles
consistently applied throughout the periods involved and present fairly in
accordance with generally accepted accounting principles the financial
condition of AWI and all such information so furnished is to the Borrower’s
best knowledge true, correct and complete.

 

Reporting Requirements: The
Borrower shall furnish Salerno with the following statements and reports:

 

A) Within one hundred twenty
(120) days after the end of the fiscal year, a copy of the audited annual
financial statements of Piercy Bowler Taylor & Kern, Ltd.

 

 

B) Within forty-five (45)
days after the end of each fiscal quarter, a copy of the quarterly financial
statements of AWI, certified by
the Borrower to the best of her knowledge to present fairly the financial
condition of AWI.

 

C) From time to time at the
request of Salerno, the Borrower will deliver a certificate as to its
representations and warranties and no Events of Default hereunder.

 

Events of Default: If any of
the events set forth below ( “Events of Default”) shall occur and be
continuing, Salerno may, but shall not be obligated to, declare the Note
immediately due and payable and withhold Advances and pursue any other rights
and remedies available to Salerno or both:

 

A) A payment of interest on
the Note is not made within ten (10) business days following the date on
which it is due;

 

B) A representation or
warranty contained herein proves to be incorrect in any material respect;

 

C) The Borrower shall be
involved in financial difficulties as evidenced by the entry of an order by a
court of competent jurisdiction finding him to be bankrupt or insolvent and
such order shall not be vacated or stayed on appeal or otherwise stayed within
sixty (60) days;

 

D) If at any time Salerno
reasonably believes in good faith that the prospect of payment of any
Obligation or the performance of any agreement of the Borrower, or that there
is such a change in the assets, liabilities, financial condition or business of
AWI, which, in each case,
impairs Salerno’s security or increases its risk of non-collection.

 

Following any Event of
Default which is continuing, Salerno may decline to make any or all further
Advances hereunder; Salerno may proceed to protect and enforce its rights by
suit in equity, action at law and/or other appropriate proceeding either for specific
performance of any covenant or condition contained in the Line of Credit or any
other outstanding agreement with Salerno or in any instrument delivered to
Salerno pursuant hereto or thereto, or in aid of the exercise of any power
granted in the Line of Credit, any outstanding agreement with Salerno or any
such instrument.

 

Notices: All communications
herein provided shall be in writing and shall be sufficient if sent by United
States mail, registered or certified, postage prepaid, delivered by messenger,
or so-called overnight courier, addressed as follows:

 

If to the Pledgor:

Victor
Salerno

675
Grier Drive

Las
Vegas, Nevada 89119

 

If to the Pledgee:

American Wagering, Inc.

675 Grier Drive

Las Vegas, Nevada 89119

Attention:  Secretary

 

or to such other address as
the party to receive any such communication or notice may have designated by
written notice to the other party.

 

 

Expenses: All reasonable
legal expenses reasonably incurred by Salerno in connection with the
preparation, administration and enforcement of this Agreement and the Note
shall be payable by the Borrower to Salerno on demand.

 

WAIVER OF JURY TRIAL:TO THE
EXTENT PERMITTED BY LAW, EACH OF THE Borrower AND Salerno HEREBY WAIVES ITS
RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN
RESPECT OF OR ARISING OUT OF THIS AGREEMENT, THE NOTE, THE STOCK PLEDGE
AGREEMENT AND THE OTHER AGREEMENTS AND TRANSACTIONS CONTEMPLATED HEREBY AND THE
CONDUCT OF THE RELATIONSHIP BETWEEN THE Borrower AND Salerno.

 

Laws: This Agreement shall
be construed as an instrument under seal and in accordance with and governed in
all respects by the laws of the State of Nevada.  The parties subject to personal jurisdiction
to the State of Nevada and venue shall be in Clark County, Nevada.

 

If the above terms and
conditions are satisfactory, please so indicate on the enclosed copy hereof
whereupon this letter will then constitute an Agreement between the Borrower
and Salerno.

 

	
   

  	
   

  	
  BORROWER

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Salerno

  	
   

  
	
   

  	
   

  	
  John Salerno

  	
   

  
	
   

  	
  Title: Secretary

  	
   

  
	
   

  	
  Agreed and Accepted on
  April 21, 2010

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SALERNO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor Salerno

  	
   

  
	
   

  	
   

  	
  Victor Salerno

  	
   

  
	
   

  	
  Agreed and Accepted on
  April 21, 2010

  	
   

  

 

 

	
  Copy to:

  	
  General Counsel

  	
   

  
	
   

  	
  American
  Wagering, Inc.Exhibit 10.1

 

FORM OF CONVERTIBLE
NOTE PURCHASE AGREEMENT

 

This Convertible Note Purchase Agreement (this “Agreement”) is made and entered into as of June     ,
2010, by and between Maui Land & Pineapple Company, Inc., a
Hawaii corporation (the “Company”) and 
                                      
(including any other persons or entities selling Notes hereunder for whom the
undersigned Holder holds contractual and investment authority, “Holder”).  The Company
and Holder are sometimes referred to individually as a “Party”
and collectively as the “Parties.”  Capitalized terms used but not defined herein
shall have the meanings given to them in the Securities Purchase Agreement or
the Notes, as applicable (each as defined in Recital A below).  This Agreement is one of multiple agreements
entered into between holders of Notes (the “Holders”)
and the Company on the same terms as this Agreement (collectively referred to
as the “Agreements”).  The Holders entering into the Agreements are
referred to herein as the “Participating Holders.”

 

R E C I T A L S

 

A.                                    Pursuant to
that certain Securities Purchase Agreement (the “Securities
Purchase Agreement”), dated as of July 27, 2008, the Company
sold an aggregate of Forty Million Dollars ($40,000,000) in principal amount of
Senior Secured Convertibles Notes (the “Notes”) to the
investors listed on the Schedule of Buyers attached thereto.

 

B.                                    Holder is
currently the holder of the Sold Notes (as defined in Article I
below).

 

C.                                    Holder desires
to sell the Sold Notes to the Company, and the Company desires to purchase the
Sold Notes from Holder, on the terms and subject to the conditions of this
Agreement.

 

D.                                    In order to
fund the purchase of the Sold Notes, the Company intends to enter into and
consummate a financing transaction structured as an offering of rights to its
shareholders to purchase shares of the Company’s common stock (the “Common Stock”) pursuant to a registration statement (the “Registration Statement”) filed with the Securities Exchange
Commission (the “Rights Offering”).

 

E.                                      Pursuant to Section 9(e) of
the Securities Purchase Agreement, provisions of the Securities Purchase
Agreement can be amended or waived by a written instrument signed by the
Company and holders of at least sixty percent (60%) of the aggregate number of
Registrable Securities issued under the Securities Purchase Agreement, and
pursuant to Section 16 of the Notes, provisions of the Notes can be
amended or waived by the written consent of Holders of Notes representing at
least sixty percent (60%) of the aggregate principal amount of the Notes then
outstanding.

 

F.                                      On June 22,
2010 (the “Initial Effective Date”), the
Company entered into Agreements with Holders holding in excess of sixty percent
(60%) of the aggregate number of Registrable Securities issued under the
Securities Purchase Agreement and the aggregate principal amount of the Notes
outstanding as of such date.

 

G.                                    In connection
with the sale of the Sold Notes hereunder, and the consummation of the Rights
Offering, Holder, together with certain other holders of the Notes holding the
requisite amount of Registrable Securities, desires to waive and amend certain
provisions of the Securities Purchase Agreement, and Holder, together with
certain other holders of the Notes representing the Required Holders (as
defined in the Notes), desires to waive and amend certain provisions of the
Notes.

 

 

A G R E E M E N T

 

NOW THEREFORE, in consideration for the mutual covenants and
representations set forth herein, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Parties hereto
hereby agree as follows:

 

ARTICLE I: 
SALE AND PURCHASE OF THE NOTES; LOCK-UP FEE

 

Section 1.1                                   Sale
and Purchase of Notes.  Subject to satisfaction of the conditions set
forth in Section 1.3 below, Holder hereby agrees to sell and
deliver to the Company, and the Company hereby agrees to purchase from Holder,
the following Notes and all accrued but unpaid interest thereon for the cash
purchase price specified immediately below (the “Sale”).

 

a.                                       Principal
Amount of Notes to be Sold:
                              
($          ) (the “Sold Notes”).

 

b.                                       Cash
Purchase Price:
                              
($          ), representing
eighty eight percent (88.0%) (the “Base Percentage”)
of the aggregate principal amount of the Sold Notes, plus all accrued and
unpaid interest on the Sold Notes through the date immediately prior to the
closing of the Sale (the “Purchase Price”).

 

c.                                       Most Favored Nation.  Should the Company enter into an arrangement
with any other Holder (who is not a Participating Holder) between the date
hereof and the date that is 180 calendar days from the Initial Effective Date
(the “End Date”), which, by its
terms, provides such Holder with payment of the principal amount of its Note of
greater than ninety percent (90.0%) (the “Relevant
Percentage”) of the face value of such Note (the “More Favorable Transaction”), the Company
shall promptly provide notice to the Holder containing all provisions of the
More Favorable Transaction and the terms of this Agreement shall be deemed
automatically amended to include the terms of such More Favorable
Transaction.  If such an amendment is
given effect prior to Closing (as defined in Section 1.4), the Base
Percentage shall equal (A) eighty eight percent (88.0%) plus (B) (i) the
Relevant Percentage minus (ii) ninety percent (90.0%) (the sum of (A) and
(B), the “Revised Percentage”).  If such an amendment is given effect after
the Closing but prior to the End Date, the Company shall apply the Revised
Percentage to the Purchase Price and pay to the Holder within two (2) Business
Days of the amendment an amount that is equal to the difference between the
Purchase Price at Closing and the new Purchase Price determined by substituting
the Revised Percentage for the Base Percentage.

 

Section 1.2                                   No
Liens.  Holder shall
deliver or cause to be delivered to the Company all right, title and interest
in and to the Sold Notes free and clear of any mortgage, lien, pledge, charge,
security interest, encumbrance, option, equity or other adverse claim thereto
(collectively, “Liens”), together, at the Company’s
expense, with any customary documents of conveyance or transfer that the
Company may deem necessary or desirable to transfer to and confirm in the
Company all right, title and interest in and to the Sold Notes free and clear
of any Liens.

 

Section 1.3                                   Condition
to Obligations.

 

a.                                       The obligation
of the Company to consummate the Sale and carry out the other transactions
contemplated by this Agreement is, unless waived in writing by the Company,
subject to the fulfillment on or prior to the Closing of the following
conditions:

 

i.                                         Completion by the Company of
the Rights Offering, which results in aggregate gross proceeds to the Company
of an amount at least equal to the aggregate Purchase Price of all of the Sold
Notes under the Agreements (the “Financing Transaction”).

 

2

 

ii.                                     The
representations and warranties of the Holder set forth in Article II shall
be true and correct as of the date hereof and on and as of the Closing, except
to the extent such representations and warranties speak as of another date, in
which case such representations and warranties shall be true and correct as of
such other date.  The Holder shall have
performed and complied fully with all of the covenants and agreements required
by this Agreement to be performed or complied with by the Holder on or prior to
Closing.

 

iii.                                 No temporary
restraining order, preliminary or permanent injunction or other order
preventing the consummation of the Sale shall have been issued by any court of
competent jurisdiction or other Governmental Authority (as defined in Section 3.3)
and remain in effect, and there shall not be any Legal Requirement enacted or
deemed applicable to the Sale that makes consummation of the Sale illegal.

 

iv.                                    There shall not
be pending any Legal Proceeding in which a Governmental Authority or any third
party is a party: (a) challenging or seeking to restrain, prohibit,
rescind or unwind the consummation of the Sale or the Financing Transaction; (b) relating
to the Sale or the Financing Transaction and seeking to obtain from the Company
any damages or other relief that would reasonably be expected to be material to
the Company; or (c) seeking to impose (or that could result in the
imposition of) any criminal sanctions or liability on the Company.

 

b.                                       The obligation
of the Holder to consummate the Sale and carry out the other transactions
contemplated by this Agreement is, unless waived in writing by the Holder,
subject to the fulfillment on or prior to the Closing of the following
conditions:

 

i.                                         The
representations and warranties of the Company set forth in Article III
shall be true and correct as of the date hereof and on and as of the Closing,
except to the extent such representations and warranties speak as of another
date, in which case such representations and warranties shall be true and
correct as of such other date.  The Company
shall have performed and complied fully with all of the covenants and
agreements required by this Agreement to be performed or complied with by the
Company on or prior to Closing.  The
Company shall have delivered to the Holder a certificate, dated as of Closing
and signed by an authorized officer of the Company, to the foregoing effect and
stating that all conditions to the Holder’s obligations under this Agreement
have been satisfied or waived.

 

ii.                                     The Company’s
compliance in full with the terms of the Securities Purchase Agreement and Notes,
including, but not limited to, the obligation to pay Interest on any
outstanding Principal at the applicable Interest Rate on each Interest Date.

 

iii.                                 No temporary
restraining order, preliminary or permanent injunction or other order
preventing the consummation of the Sale or the Financing Transaction shall have
been issued by any court of competent jurisdiction or other Governmental
Authority and remain in effect, and there shall not be any Legal Requirement
enacted or deemed applicable to the Sale or the Financing Transaction that
makes consummation of the Sale and/or the Financing Transaction illegal.

 

iv.                                     There shall not
be pending any Legal Proceeding in which a Governmental Authority or any third
party is a party challenging or seeking to restrain, prohibit, rescind or
unwind the consummation of the Sale or the Financing Transaction.

 

For
purposes of this Section 1.3, “Legal Requirement”
means any federal, state, provincial, territorial, local, municipal, foreign or
other law, statute, constitution, principle of common law, resolution,
ordinance, code, edict, decree, rule, regulation, order, injunction, judgment,
award, ruling or requirement issued, enacted, adopted, promulgated, implemented
or otherwise put into effect by or under the authority of any Governmental
Authority.

 

3

 

For
purposes of this Section 1.3, “Legal Proceeding”
means any action, suit, litigation, arbitration, proceeding (including any
civil, criminal, administrative, investigative or appellate proceeding),
hearing, inquiry, audit, examination or investigation commenced, brought,
conducted or heard by or before, or otherwise involving, any court or other
Governmental Authority or any arbitrator or arbitration panel.

 

Section 1.4                                   Closing
of Sale.  The closing of the Sale, which shall include
the delivery of the Sold Notes to the Company and the delivery of the Purchase
Price by wire transfer of immediately available funds to an account designated
by Holder, shall occur on the date on which the Financing Transaction is
consummated or the following Business Day thereafter if the closing is unable
to be completed, despite the best efforts of the Parties, on the date on which
the Financing Transaction is consummated (the “Closing”).

 

Section 1.5                                   Lock-Up
Fee.  In
consideration of Holder’s compliance with the covenants set forth in Article VIII,
the Company hereby agrees to pay to Holder, or its designee, a fee in the
amount of
                    
($          ), representing
two percent (2.0%) of the aggregate principal amount of the Sold Notes (the “Lock-Up Fee”).  The
Lock-Up Fee shall be paid by wire transfer of immediately available funds to an
account designated by Holder on the date this Agreement is executed, and shall
be deemed fully earned upon receipt.  The
Company’s obligation to pay the Lock-Up Fee, and Holder’s right to receive and
retain the Lock-Up Fee in connection with this securities contract, shall not
be conditioned upon the consummation of the Sale.  For the avoidance of doubt, (i) upon
consummation of the Sale, the Purchase Price shall be paid in full and shall
not be offset by the Lock-Up Fee; and (ii) the Company acknowledges and
agrees that it is receiving reasonably equivalent value and fair consideration
in exchange for the payment of the Lock-Up Fee.

 

ARTICLE II: 
COVENANTS, REPRESENTATIONS AND WARRANTIES OF HOLDER

 

Holder hereby makes the following covenants,
representations and warranties to the Company, each of which is and shall be
true and correct on the date hereof and at the Closing, and all such covenants,
representations and warranties shall survive the Sale.

 

Section 2.1                                   Power
and Authorization.  Holder is duly organized, validly existing
and in good standing, and has the power, authority and capacity to execute and
deliver this Agreement, to perform its obligations hereunder, and to consummate
the Sale contemplated hereby.  If a
Holder that is signatory hereto is executing this Agreement to effect the sale
of Sold Notes beneficially owned by one or more other persons or entities (who
are thus included in the definition of “Holder” hereunder), (i) such
signatory Holder has all requisite discretionary and contractual authority to
enter into this Agreement on behalf of, and bind, each such other person or
entity that is a beneficial owner of Sold Notes, and (ii) Schedule A
to this Agreement is a true, correct and complete list of (a) the name of
each person or entity delivering (as beneficial owner) Sold Notes hereunder,
(b) the principal amount of such Holder’s Sold Notes, and (c) the
portion of the Purchase Price to be paid to such Holder.

 

Section 2.2                                   Valid
and Enforceable Agreement; No Violations.  This Agreement has been duly executed and
delivered by Holder and constitutes a legal, valid and binding obligation of
Holder, enforceable against Holder in accordance with its terms, except that
such enforcement may be subject to (i) bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting or relating to
enforcement of creditors’ rights generally, and (ii) general principles of
equity (collectively, the 

 

4

 

“Enforceability Exceptions”).  This Agreement and the consummation of the
Sale will not violate, conflict with or result in a breach of or default under
(a) Holder’s organizational documents, (b) any agreement or
instrument to which Holder is a party or by which Holder or any of its assets
are bound, or (c) any laws, regulations or governmental or judicial
decrees, injunctions or orders applicable to Holder.  Notwithstanding anything contained herein to
the contrary, no covenant, representation or warranty is being made by the
Holder with respect to the enforceability or effectiveness of actions to be taken
under or in connection with the Securities Purchase Agreement or the Notes,
including, without limitation, the provisions, waivers and/or amendments set
forth in Articles  IV, V and/or VI, other than
insofar as such waivers apply to the Holder.

 

Section 2.3                                   Title
to the Sold Notes.  Holder is the sole legal and beneficial owner
of the Sold Notes, and Holder has good, valid and marketable title to the Sold
Notes, free and clear of any Liens. 
Holder has not, in whole or in part (i) assigned, transferred,
hypothecated, pledged, exchanged or otherwise disposed of any of the Sold Notes
or its rights in the Sold Notes, or (ii) given any person or entity any
transfer order, power of attorney or other authority of any nature whatsoever
with respect to the Sold Notes.  Upon
Holder’s delivery of the Sold Notes to the Company pursuant to the Sale, the
Sold Notes shall be free and clear of all Liens created by Holder.

 

Section 2.4                                   No
Illegal Transactions.  Holder covenants that, from and after the
date hereof and prior to the time the transactions contemplated by this
Agreement are publicly disclosed, neither it nor any person acting on its
behalf or pursuant to any understanding with such Holder will engage, directly
or indirectly, in any transactions in the securities of the Company (including
Short Sales) prior to the time the transactions contemplated by this Agreement
are publicly disclosed.  For purposes of
this Agreement, “Short Sales” include, without
limitation, all “short sales” as defined in Rule 200 of Regulation SHO
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and all types of direct and indirect stock
pledges, forward sale contracts, options, puts, calls, short sales, swaps,
derivatives and similar arrangements, and sales and other transactions through
non-U.S. broker-dealers or foreign regulated brokers.

 

Section 2.5                                   Adequate
Information; No Reliance. 
Holder acknowledges and agrees that (i) Holder has been furnished
with all materials and information it considers relevant to making a decision
to enter into the Sale and has had the opportunity to review the Company’s
filings with the Securities and Exchange Commission (the “SEC”),
(ii) Holder has had a full opportunity to ask questions of the Company and
its management concerning the Company, its business, operations, financial
performance, financial condition and prospects, and the terms and conditions of
the Sale, (iii) Holder has had the opportunity to consult with its
accounting, tax, financial and legal advisors to be able to evaluate the risks
involved in the Sale and to make an informed investment decision with respect
to the Sale, and (iv) Holder is not relying, and has not relied, upon any
statement, advice (whether legal, tax, financial, accounting or other),
representation or warranty made by the Company or any of its Representatives,
except for (a) the publicly available filings made by the Company with the
SEC under the Exchange Act, and (b) the representations and warranties
made by the Company in this Agreement. For purposes of this Agreement, “Representatives” of a Party shall mean the directors,
officers, controlling shareholders, employees, agents or advisors (including,
without limitation, attorneys, accountants, consultants, bankers and financial
advisors) of that Party or of any subsidiary or affiliate of that Party.

 

Section 2.6                                   No
Public Solicitation.  Holder acknowledges that, in the course of
considering, negotiating, entering into and consummating the Sale of the Sold
Notes hereunder, Holder was not contacted by or solicited through any public or
widespread communication.

 

Section 2.7                                   Release
of Collateral.  Subject to and concurrent with the Closing,
Holder hereby releases all interests it may have under the Notes and the
Security Documents to all Collateral securing obligations of the Company under
the Notes.  Following the Closing, Holder
shall, or shall instruct the Collateral Agent to, at the expense of the
Company, execute, deliver, record and file such documents and instruments
reasonably requested by the Company to evidence the release of the Collateral
with respect to Holder under the Security Documents, including, without
limitation, the reconveyance of the Properties covered by Mortgages and the
filing of UCC termination statements, or amendments thereto, as applicable.

 

5

 

ARTICLE III: 
COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby makes the
following covenants, representations and warranties to Holder, each of which is
and shall be true and correct on the date hereof and at the Closing, and all
such covenants, representations and warranties shall survive the Sale.

 

Section 3.1                                   Power
and Authorization.  The Company is duly incorporated, validly
existing and in good standing under the laws of its state of incorporation, and
has the power, authority and capacity to execute and deliver this Agreement, to
perform its obligations hereunder, and to consummate the Sale contemplated
hereby.

 

Section 3.2                                   Valid
and Enforceable Agreement; No Violations.  This Agreement has been duly executed and
delivered by the Company and constitutes a legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms,
except that such enforcement may be subject to the Enforceability
Exceptions.  This Agreement and
consummation of the Sale will not violate, conflict with or result in a breach
of or default under (i) the charter, bylaws or other organizational
documents of the Company, (ii) any agreement or instrument to which the Company
is a party or by which the Company or any of its assets are bound, or
(iii) any laws, regulations or governmental or judicial decrees,
injunctions or orders applicable to the Company.

 

Section 3.3                                   Compliance
with Applicable Law.

 

a.                                       The Company
shall comply with all Applicable Law, including the obtaining of all
Governmental Approvals, in performing its obligations hereunder and any actions
taken in connection herewith.

 

b.                                       For purposes of
Section 1.3, this Section 3.3, Section 7.6 and/or Section 9.1,
as applicable, the following definitions shall apply:

 

i.                                         “Applicable
Law” means all applicable provisions of constitutions, statutes,
rules, regulations and orders of any Governmental Authority, including all
orders and decrees of all courts, tribunals and arbitrators.

 

ii.                                     “Governmental Approvals” means all
authorizations, consents, approvals, licenses and exemptions of, registrations
and filings with, and reports to, all Governmental Authorities.

 

iii.                                 “Governmental Authority” means any national,
state or local government (whether domestic or foreign), any political
subdivision thereof or any other governmental, quasi-governmental, judicial,
administrative, public or statutory instrumentality, authority, body, agency,
bureau, commission, board, department or other entity (including, without
limitation, the Federal Deposit Insurance Corporation, the Comptroller of the
Currency or the Federal Reserve Board, any central bank or any comparable
authority) or any arbitrator with authority to bind a party at law.

 

Section 3.4                                   Information.  For so long as this
Agreement is in effect: (i) the Company shall furnish promptly to the
Holder all documentation and information pertaining to the business or
operations, financial condition, operating results or future prospects of the
Company (including, but not limited to, the 

 

6

 

information set forth in Section 4(e) of
the Securities Purchase Agreement) as may be requested by such Holder and shall
make available appropriate senior management to discuss the foregoing; and (ii) the
Company shall furnish to the Holder, or Holder’s legal counsel, final drafts of
all transaction documentation pertaining to the Financing Transaction
(including, but not limited to, Form S-1 and/or S-3, as the case may be,
and Form 8-K SEC filings) at least one (1) Business Day prior to the
filing of such documentation with the SEC, which public filings shall occur no
later than one (1) Business Day after the date hereof.

 

Section 3.5                                   Individual
Holdings.  The Company shall not disclose the Holder’s
name or individual Note holdings of Holder to any other Holder or any third
party, including, without limitation, in any public filings, without the prior
written consent of the Holder.

 

ARTICLE IV:  WAIVER OF TERMS OF SECURITIES PURCHASE
AGREEMENT

 

In accordance with Section 9(e) of the
Securities Purchase Agreement, Holder (together with certain other Holders of
the Notes holding the requisite amount of Registrable Securities) hereby agrees
to waive certain provisions of the Securities Purchase Agreement as set forth
in this Article IV on behalf of itself and each of the other
Holders of the Notes.

 

Section 4.1                                   Waiver
of Notice Requirement and Preemptive Right.  In accordance with Section 4(o)(iii) of
the Securities Purchase Agreement, the Company is obligated to deliver a
written notice of any proposed or intended issuance or sale of the securities
being offered in a Subsequent Placement to the Holders of the Notes.  In addition, the
Company is obligated to offer to issue and sell to the Holders of the Notes at
least thirty percent (30%) of the securities offered in the Subsequent
Placement.  The Parties acknowledge that
the issuance of securities in the Financing Transaction may constitute a
Subsequent Placement requiring the Company to provide the Holders of the Notes
notice and the opportunity to participate in the Subsequent Placement.  Holder hereby waives the right to receive
notice of the Financing Transaction and to participate in the Financing Transaction,
pursuant to Section 4(o)(iii) of the Securities Purchase Agreement.

 

ARTICLE V:  WAIVER OF TERMS OF NOTES

 

Subject to Section 5.4 of this Agreement, in
accordance with Section 16 of the Notes, Holder (together with certain
other Holders of the Notes representing the Required Holders) hereby agrees to
waive certain provisions of the Notes as set forth in this Article V
on behalf of itself and on behalf of each of the other Holders of the Notes.

 

Section 5.1                                   Waiver
of Redemption Right Upon Change of Control.  Pursuant to Section 5(b) of
the Notes, the Company is obligated to deliver written notice to the Holders of
the Notes upon the consummation of a Change of Control (as defined in the
Notes), and the Holders of the Notes may require the Company to redeem all or
any portion of their Notes.  The Parties
acknowledge that the Financing Transaction may result in a Change of Control
requiring the delivery of notice by the Company and providing a right of
redemption to the Holders of the Notes. 
Holder hereby waives the right to receive notice of any Change of
Control that may occur in connection with the Financing Transaction and further
waives the right to redeem all or any portion of the Notes as a result of a
Change of Control that may occur in connection with the Financing Transaction
pursuant to Section 5(b) of the Notes.

 

Section 5.2                                   Waiver
of Notice and Purchase Right. 
Pursuant to Section 6(a) of the Notes, if at any time the
Company grants, issues or sells any securities or other property pro rata to
the holders of the Common Stock (the “Purchase Rights”),
then Holders of the Notes will be entitled to acquire the aggregate Purchase
Rights which such Holders could have acquired if they had converted their Notes
into Common Stock as of the date on which the Purchase Rights are sold or
issued.  The Parties acknowledge 

 

7

 

that
the securities to be issued in the Financing Transaction may constitute
Purchase Rights for purposes of the Notes requiring the Company to provide
Holders of the Notes with an opportunity to purchase their respective pro rata
shares of the Purchase Rights sold in the Financing Transaction.  Holder hereby waives the right to participate
in the Financing Transaction pursuant to Section 6(a) of the Notes
and waives the right to receive notice of the Financing Transaction pursuant to
Section 24(a) of the Notes.

 

Section 5.3                                   Waiver
of Anti-Dilution Adjustment. 
Pursuant to Section 7(a) of the Notes, if the Company issues
or sells any shares of the Common Stock for consideration per share less than
the Conversion Price (as defined in the Notes) in effect immediately prior to
such issue or sale, then there shall be an adjustment to the Conversion Price
on the terms set forth therein.  The Parties
acknowledge that the Company will be deemed to have issued shares of the Common
Stock in the Financing Transaction for consideration per share less than the
Conversion Price.  Holder hereby waives
the right to have the Conversion Price adjusted as a result of the Financing
Transaction pursuant to Section 7(a) of the Notes.

 

Section 5.4                                   Effectiveness
of Waivers. 
Notwithstanding anything to the contrary contained herein, the waivers
and agreements set forth in this Article V shall be of no force or effect
(other than the waiver set forth in Section 5.2) in the event this
Agreement is terminated for any reason pursuant to Section 9.1 (other than
pursuant to Section 9.1(b)(viii)) or in the event the Financing
Transaction is consummated and the Closing does not occur as provided in Section 1.4.

 

ARTICLE VI: 
AMENDMENTS TO NOTES AND SECURITIES PURCHASE AGREEMENT

 

In accordance with Section 16 of the Notes,
Holder (together with certain other holders of the Notes representing the
Required Holders) hereby agrees to amend certain provisions of the Notes as set
forth in this Article VI on behalf of itself and each of the other
Holders of the Notes.

 

Section 6.1                                   Amendment.  The Notes are hereby amended by deleting the
language of Section 11(a) in its entirety and replacing it with “Reserved.”  The remaining provisions of the Notes shall
be unaffected by this amendment and shall continue in full force and
effect.  Notwithstanding anything to the
contrary contained herein, the amendment described in this Section 6.1 shall
be of no force or effect in the event this Agreement is terminated for any
reason pursuant to Section 9.1 (other than pursuant to Section 9.1(b)(viii))
or in the event the Financing Transaction is consummated and the Closing does
not occur as provided in Section 1.4.

 

Section 6.2                                   Collateral
Agent.  The
Securities Purchase Agreement is amended by deleting the words “thirty (30)”
where they appear in Section 4(q) and replacing them with the words “five
(5).”  The Company otherwise agrees to
procure, and accepts full responsibility with respect to, the appointment of a
successor collateral agent pursuant to Section 4(q)(iii) (as amended
by this Section 6.2).  The remaining
provisions of the Securities Purchase Agreement 
shall be unaffected by this amendment and shall continue in full force
and effect.  Notwithstanding anything to
the contrary contained herein, the amendment described in this Section 6.2
shall be of no force or effect in the event this Agreement is terminated for
any reason pursuant to Section 9.1 (other than pursuant to Section 9.1(b)(viii))
or in the event the Financing Transaction is consummated and the Closing does
not occur as provided in Section 1.4.

 

ARTICLE VII: 
CONFIDENTIALITY

 

Section 7.1                                   Confidential
Material.  For purposes of this Agreement, “Confidential Material” shall include any and all information
furnished or otherwise communicated by or on behalf of the Company, whether in
written, electronic or oral form, to Holder or any of its Representatives,
relating in any manner to the Company or its business or operations, financial
condition, operating results or future prospects, and any and all notes,
analyses, compilations, studies, interpretations or other documents 

 

8

 

prepared
by Holder or any of its Representatives which contain Confidential
Material.  However, in no event shall “Confidential
Material” include information which (i) is or becomes generally available
to the public other than as a result of a disclosure by Holder or its
Representatives, or (ii) Holder is able to demonstrate is or has become
available to Holder on a non-confidential basis from a source other than the
Company, any of the Company’s Representatives or any other person who Holder
knows, or has reason to know, is bound by a confidentiality agreement with or
other contractual, legal or fiduciary obligation to either the Company or to
any other person.

 

Section 7.2                                   Confidentiality
and Non-Disclosure of Confidential Material.  Subject to Section 7.4, Holder covenants
that it will keep, and that it will cause its Representatives to keep, in
strict confidence all Confidential Material, whether received from the Company
or any of its Representatives or prepared by Holder or any of its
Representatives.

 

Section 7.3                                   Non-Disclosure
of Discussions.  Holder also agrees that, without the prior
written consent of the Company (which the Company may withhold in its sole and
absolute discretion), neither Holder nor any of its Representatives shall
publish a press release or otherwise publicly disclose the fact that any
Confidential Material has been made available by the Company to Holder, that
Holder has entered into this Agreement, or that the Parties intend to
consummate the Sale and the other transactions contemplated by this Agreement; provided,
however, that Holder may make such disclosure if, in the opinion of
Holder’s counsel, such disclosure is necessary to avoid a violation of law or
regulation applicable to it and Holder has given at least two (2) Business
Days prior notice, to the extent legally permissible, of the proposed
disclosure to the Company.

 

Section 7.4                                   Legally
Required Disclosure.  If Holder or any of its Representatives is
requested or required by any tribunal or government agency to disclose any
Confidential Material that would violate the other provisions of this
Agreement, Holder or its Representatives requested or required to make the
disclosure shall provide the Company with prompt notice, to the extent legally
permissible, of any such request or requirement and shall provide such
reasonable cooperation as the Company may request so that the Company may seek
a protective order or other appropriate remedy at the Company’s sole expense
and/or waive compliance with the provisions of this Agreement as it would apply
to such requested or required disclosure. 
If, in the absence of a protective order or other remedy or the receipt
of a written waiver from the Company, Holder and/or its Representatives that is
requested or required to make the disclosure are nonetheless, in the opinion of
Holder’s counsel, legally compelled to disclose the Confidential Material to
any tribunal or government agency, Holder or such Representatives may disclose
to such tribunal or government agency only that portion of the Confidential
Material which such counsel advises is legally required to be disclosed,
provided that Holder exercises commercially reasonable efforts to preserve the
confidentiality of the Confidential Material.

 

Section 7.5                                   Injunctive
Relief.  It is acknowledged and agreed by the Parties
that if there occurs a breach or threatened breach by Holder of any of the
agreements or obligations of Holder or its Representatives under this Article VII,
(i) the Company may incur irreparable damages as a result thereof and the
remedies that are available at law may not, by themselves, be adequate to
compensate or protect the Company from or against such damages; and (ii) in
addition to any other remedies that may be available at law or in equity, the
Company shall be entitled to seek temporary, preliminary and permanent
injunctive relief to halt any such breach or prevent any threatened breach from
occurring.

 

Section 7.6                                   Return
of Confidential Material.  Upon the termination of this Agreement, upon
the written request of the Company for any reason or no reason, Holder shall
promptly deliver or cause to be delivered to the Company, or destroy, at the
Holder’s option, all Confidential Material furnished to Holder or its
Representatives by or on behalf of the Company pursuant to this Agreement, and
no copy thereof shall be retained by Holder or any of its Representatives,
other than in accordance with record retention policies or procedures then in
effect or Applicable Law (as defined in Section 3.3).

 

9

 

ARTICLE VIII: 
CERTAIN LEGAL AND OTHER RESTRICTIONS

 

Section 8.1                                   Material Non-Public Information.  Holder hereby acknowledges
that it is aware that the United States securities laws restrict any person who
has received material, non-public information about the Company from purchasing
or selling securities of the Company and from communicating such information to
any other person under circumstances in which it is reasonably foreseeable that
such person is likely to purchase or sell such securities in reliance upon such
information.  Holder acknowledges that it
has been informed by the Company that any Confidential Material that may be
furnished to it hereunder, the fact that the Company and Holder have entered
into this Agreement, and the terms of the Sale, constitute or will include
material, non-public information of the Company that is subject to such
securities laws.

 

Section 8.2                                   Market
Standoff Agreement.  Without limiting the obligations set forth in
Section 8.1 above, Holder covenants and agrees that, from the date of this
Agreement until this Agreement has been terminated in accordance with Section 9.1
below (the “Restricted Period”), without the
prior written consent of the Company, the Holder shall not, and shall instruct
its Representatives to not, in any manner (i) offer, pledge, announce the
intention to sell, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or
warrant to purchase, or otherwise transfer or dispose of, directly or
indirectly, any shares of the Common Stock or any securities convertible into
or exercisable or exchangeable for the Common Stock (including the Notes or
such other securities which may be deemed to be beneficially owned by the
undersigned in accordance with the rules and regulations of the SEC and
securities which may be issued upon exercise of a stock option or warrant) (the
“Securities”); (ii) enter into any
swap or any other agreement or any transaction that transfers, in whole or in
part, directly or indirectly, the economic consequence of ownership of
Securities, whether any such swap or transaction is to be settled by delivery
of the Common Stock or other securities, or in cash or other property; or (iii) make
any demand for or exercise any right with respect to the registration of any
Securities.

 

Section 8.3                                   Standstill
Agreement.  Without limiting the obligations set forth in
Section 8.2 above, Holder further covenants and agrees that, during the
Restricted Period, without the prior written consent of the Company, none of
Holder or its Representatives shall in any manner, directly or indirectly,
effect or seek, offer or propose (whether publicly or otherwise) to effect, or
cause or participate in or in any way assist any other person to effect or
seek, offer or propose (whether publicly or otherwise) to effect or participate
in, (i) any tender or exchange offer, merger or other business combination
involving the Company or any of its subsidiaries; (ii) any
recapitalization, restructuring, liquidation, dissolution or other
extraordinary transaction with respect to the Company; (iii) representation
for itself or any of its Representatives on the Board of Directors of the
Company, whether by a proxy contest or otherwise, or (iv) take any action
which in and of itself would require the Company or any of its Affiliates or
Representatives to make a public announcement or public filing regarding any of
the types of matters set forth in the preceding clauses (i) through (iii),
inclusive, of this Section 8.3; or (v) enter into any discussions,
arrangements or agreements with any third person with respect to any of the
foregoing.

 

Section 8.4                                   Limitation
on Restrictions.  Notwithstanding
the foregoing provisions of this Article VIII, to the extent (and
only to the extent) that the Financing Transaction is structured as a Rights
Offering, Holder shall not be prevented from participating in the Financing
Transaction to the extent (and only to the extent) that Holder receives
subscription rights distributed pursuant to the Rights Offering.

 

10

 

ARTICLE IX: 
TERMINATION OF AGREEMENT

 

Section 9.1                                   Termination.  This Agreement shall be
effective as of the Effective Date (as defined in Section 11.2) and shall
continue in full force and effect until terminated in accordance with this Section 9.1.

 

a.                                       Mutual
Agreement.  Other than pursuant to an automatic
termination contemplated by Section 9.1(b), this Agreement and the other
Agreements may be terminated at any time following the Effective Date only upon
the mutual written consent of the Company and Holder.

 

b.                                       Automatic
Termination.  This Agreement shall terminate immediately
(and without any action by either Party) upon the earliest to occur of (i) 11:59 p.m.
New York City time on the date which is the forty-seventh (47th) calendar day
following, but excluding, the Initial Effective Date; provided, that in
the event the Securities and Exchange Commission elects to review or issue
comments with respect to the Company’s Registration Statement related to the
Rights Offering, the period of time set forth above shall be extended by ten (10) calendar
days, and provided  further, that if such date is not a Business
Day then the Agreement shall terminate on the next Business Day (the “Lock-Up Period”), (ii) the date that is sixteen (16)
days, or fourteen (14) days if a shorter period for holding open the Rights
Offering is approved by the New York Stock Exchange, prior to the expiration of
the Lock-Up Period, including in such period the last day of the Lock-Up
Period, if the Company has not commenced mailing of offering materials to its
shareholders pursuant to the Rights Offering on or prior to such date, (iii) any
Interest Date if the Company fails to timely pay Interest on any outstanding
Principal at the applicable Interest Rate on such Interest Date, (iv) the
date on which it becomes impossible for the Company to fulfill any of the
conditions contained in Section 1.3(b) prior to expiration of the
Lock-Up Period, as mutually determined in good faith by the Holder and the
Company, (v) any date by which the Company defaults on its obligations
under the Securities Purchase Agreement or the Notes if the Company has not
cured such default within two Business Days after such default, (vi) the
date by which it becomes impossible to timely consummate the Sale by the
expiration of the Lock-Up Period for any reason, including, but not limited to,
the making of an order and/or receipt of injunctive or other relief by any
court of competent jurisdiction or other Governmental Authority that has the
effect of enjoining the Sale and/or Financing Transaction, as mutually
determined in good faith by the Holder and the Company, (vii) any date on
which the Company fails to comply with any of the covenants set forth herein if
the Company has not cured such failure within two Business Days after such
failure, and (viii) the date on which the Sale is completed and the other
transactions contemplated by this Agreement have been consummated.  For purposes of this Agreement, “Business Day” shall mean any day other than a Saturday,
Sunday or other day on which commercial banks are authorized or required to be
closed under the laws of New York or Hawaii.

 

c.                                       Optional
Termination.  The Company shall, as promptly as
practicable, provide written notice to the Holder of a Material Event (as
defined below).  This Agreement shall
terminate, at the option of the Holder prior to the date that is five (5) Business
Days following, but excluding, the date the Holder receives written notice from
the Company of a Material Event.  In the
event such optional right of termination is exercised, the Lock-Up Fee shall be
refunded to the Company within three (3) Business Days thereafter.

 

For purposes of Section 9.1(c), the following
definition shall apply:

 

“Material  Event” means a determination (as
such, a “Determination”) by the Board of
Directors of the Company (the “Board”) either (i) to
actively engage in negotiations with prospective investors relating to the
terms of a financing transaction other than the Financing Transaction, or (ii) to
actively engage in negotiations with a third party relating to, or to engage an
investment banker to pursue, an acquisition or purchase of substantially all
the assets of the Company, or a merger, consolidation, reorganization, share

 

11

 

exchange,
recapitalization, liquidation, dissolution or other similar transaction,
whether initiated by the Company or any other third party; provided that a sale
of one or more individual parcels of real property by the Company in the
ordinary course for value generally consistent with the current fair market
value as of the date hereof of such real property, as determined in good faith
by the Board, shall not be a Material Event, unless such sale or sales
constitute a sale of substantially all the assets of the Company when taken
together; provided, further that the Company may not take any action in order
to delay the Determination for the purpose of avoiding the requirement to
deliver the notice described in Section 9.1(c).

 

Section  9.2                                Survival.  If this Agreement is terminated pursuant to Section 9.1(b)(viii),
Articles I, II, III, IV, V, VI,
VII, X and XI of this Agreement shall survive the termination
of this Agreement.  If this Agreement is
terminated for any reason other than pursuant to Section 9(b)(viii), Articles
II, III, IV, VII, X, XI and
Section 5.2 (but not any other section of Article V) shall
survive the termination of this Agreement.

 

ARTICLE X:  INDEMNIFICATION

 

Section 10.1                            Indemnification.        The Company hereby agrees to
indemnify and hold the Holder and its officers, directors, partners, agents,
employees, lawyers and advisors, and each of their respective successors and
assigns (each, an “Indemnified Party”),
harmless from and against any and all claims, actions, suits, liabilities and
judgments, and costs and expenses directly related thereto (including
reasonable costs of defense on an as-incurred basis), arising by reason of or
resulting from the Holder’s execution of this Agreement and performance of its
obligations hereunder (including, without limitation, the waivers and
amendments contemplated by Articles  IV, V and VI).  In the event that a third party (including, for the
avoidance of doubt, any Holder who is not a Participating Holder) commences any
action against an Indemnified Party, the Indemnified Party shall provide written
notice of such commencement promptly to the Company.  The Company may, at its election and at its
own expense and without limiting its obligations to indemnify the Indemnified
Party, assume control of the defense of such action with counsel reasonably
satisfactory to the Indemnified Party; provided,
that if the Company assumes control of the defense, the Indemnified Party may
retain separate counsel of its choice at its own cost and expense.  The Indemnified Party will cooperate with the
Company in the defense of any such action. 
The Company shall provide the other party with copies of all notices,
pleadings, and other papers filed or received in connection with such action,
and in no event shall either the Indemnified Party or the Company consent or
agree to a settlement of any such action without the prior written consent of
the other; provided, that if the
Company obtains a settlement of such action that includes an unconditional
release of the Indemnified Party as to the claims set forth in such action, the
Company shall not require the consent of the Indemnified Party to settle such
action.

 

ARTICLE XI:  MISCELLANEOUS

 

Section 11.1                            Entire
Agreement.  This
Agreement and any documents and agreements executed in connection with the Sale
embody the entire agreement and understanding of the Parties with respect to
the subject matter hereof and supersede all prior and contemporaneous oral or
written agreements, representations, warranties, contracts, correspondence,
conversations, memoranda and understandings between or among the Parties or any
of their Representatives relative to such subject matter, including, without
limitation, any term sheets, emails or draft documents.

 

Section 11.2                            Effective
Date.  This
Agreement shall become effective upon its execution by the Company and the
Holder and the timely receipt by the Holder of the Lock-Up Fee (the “Effective Date”).

 

Section 11.3                            Amendments.  No provision of this Agreement may be waived
or amended other than by an instrument signed by the Company and the Holder.

 

12

 

Section 11.4                            Construction.  References in the singular shall include the
plural, and vice versa, unless the context otherwise requires.  References in the masculine shall include the
feminine and neuter, and vice versa, unless the context otherwise requires.  The terms “hereof,” “herein,” “hereunder” and
“hereto” and words of similar import shall refer to this Agreement as a whole
and not to the section, paragraph or provision in which such term is used or
found, unless the context otherwise requires. 
Neither Party, nor its respective counsel, shall be deemed the drafter
of this Agreement for purposes of construing the provisions of this Agreement,
and all language in all parts of this Agreement shall be construed in
accordance with its fair meaning, and not strictly for or against either Party.

 

Section 11.5                            Headings.  Headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meanings of the provisions hereof.

 

Section 11.6                            Governing
Law.  This
Agreement shall in all respects be construed in accordance with and governed by
the substantive laws of the State of New York, without reference to its choice
of law rules.

 

Section 11.7                            Severability.  If any provision of this
Agreement is held to be invalid or unenforceable by a court of competent
jurisdiction, this Agreement shall be interpreted and enforced as if such
provision were not contained herein.

 

Section 11.8                            Waiver.   No waiver by a Party of any
right, power or privilege under this Agreement, or of any breach or
non-compliance by the other Party of any of its agreements or covenants
contained herein, shall be binding or effective unless set forth in a written
instrument signed by the Party to be charged with such waiver.  No failure or delay by either Party in exercising
any right, power or privilege under this Agreement shall operate as a waiver of
such right, power or privilege; nor shall any single or partial exercise of
that right, power or privilege preclude any other or future exercise thereof.

 

Section 11.9                            Further
Assurances.  Each Party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other Party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

Section 11.10                     Counterparts.                    This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of
which taken together shall constitute one and the same instrument.  Any counterpart or other signature hereon
delivered by facsimile shall be deemed for all purposes as constituting good
and valid execution and delivery of this Agreement by such Party.

 

Section 11.11                     Independent
Nature of Holder’s Obligations and Rights.  The
obligations of the Holder under this Agreement or any other document relating
thereto are several and not joint with the obligations of any other Holder, and
the Holder shall not be responsible in any way for the performance of the
obligations of any other Holder under this Agreement or any other document
relating thereto.  Nothing contained herein or in this Agreement or any
other document relating thereto, and no action taken by the Holder pursuant hereto,
shall be deemed to constitute such Holder and other Holders as a partnership,
an association, a joint venture or any other kind of entity, or create a
presumption that such Holder and the other Holders are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated by this Agreement or any other document relating thereto and the
Company acknowledges that the Holders are not acting in concert or as a group
with respect to such obligations or the transactions contemplated by Agreement
and any other document relating thereto.  The Company and the Holder
confirms that the Holder has independently participated in the negotiation of
the transactions contemplated hereby with the advice of its own counsel. 
The Holder shall be entitled to independently 

 

13

 

protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement or out of any other
document relating thereto, and it shall not be necessary for any other Holder
to be joined as an additional party in any proceeding for such purpose.

 

 [Remainder of Page Intentionally Left
Blank; Signature Page Follows]

 

14

 

IN WITNESS WHEREOF, each of the Parties
hereto has caused this Convertible Note Purchase Agreement to be executed as of
the date first above written.

 

 

	
  “HOLDER”:

  	
   

  	
  “COMPANY”:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MAUI LAND & PINEAPPLE
  COMPANY, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

15

 

SCHEDULE A

 

SELLING BENEFICIAL OWNERS

 

	
  Name of Beneficial Owner

  	
   

  	
  Principal Amount of Sold Notes

  	
   

  	
  Purchase Price

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]