Document:

Exhibit 10.8

 

SECOND AMENDMENT TO

LOAN AGREEMENT

 

This Second Amendment to Loan Agreement (as amended, restated, supplemented or otherwise modified, this “Agreement”) is entered into as of February 26, 2013 (the “Effective Date”) by and among Maui Land & Pineapple Company, Inc., a Hawaii corporation (“Borrower”), Kapalua Land Company, Ltd., a Hawaii corporation and Maui Pineapple Company, Ltd., a Hawaii corporation (referred to herein collectively as “Guarantor” and, together with Borrower, the “Credit Parties”), and American AgCredit, FLCA (“Lender”).

 

RECITALS

 

A.                                    Borrower and Lender are party to that certain Loan Agreement dated as of December 22, 2010, as amended by a First Amendment to Loan Agreement dated as of May 10, 2011 (as it may be further amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which Lender has agreed to provide loans and other financial accommodations to Borrower upon the terms and conditions set forth in the Loan Agreement.  Capitalized terms used in this Agreement but not defined in this Agreement shall have the meanings given to them in the Loan Agreement.

 

B.                                    The Credit Parties have requested that Lender agree to amend the terms of the Loan Agreement.

 

C.                                    Lender is willing to do so on the terms and conditions set forth in this Agreement.

 

In consideration of the foregoing, the parties agree as follows:

 

ARTICLE I
 ACKNOWLEDGMENTS AND CONSENTS

 

Section 1.1                                    Affirmation of Recitals.  Each Credit Party acknowledges and confirms that each of the recitals set forth above is true and correct.

 

Section 1.2                                    Outstanding Indebtedness.  Each Credit Party acknowledges and confirms (a) that Exhibit A hereto sets forth, as of the date specified in Exhibit A, the aggregate principal amount of the Loan, and (b) that such amount is not subject to any defense, counterclaim, recoupment or offset of any kind.

 

Section 1.3                                    Consent to Amendment of Wells Fargo Loan Documents.  Lender consents to Borrower entering into an amendment (the “Wells Fargo Amendment”) to the Wells Fargo Loan Documents, to be effective concurrently with this Agreement, providing for an extension of the maturity date to May 1, 2014 with a revolving loan commitment not less than $32,000,000, and containing no other substantive changes.

 

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ARTICLE II
 AMENDMENTS TO LOAN AGREEMENT

 

Section 2.1                                    Amendment to Section 1(a).  The following definition in Section 1(a) of the Loan Agreement is hereby amended and restated to read as follows:

 

“Maturity Date” shall mean May 1, 2014.

 

Section 2.2                                    Amendment to Section 4(b).  Section 4(b) of the Loan Agreement is hereby amended and restated to read as follows:

 

(b)                                 Principal Payments; Maturity Date.  Except as provided in Section 6(a) Section 6(b), or Section 6(c), the principal balance of the Loan shall be due and payable in full on the Maturity Date; provided, that (i) if the principal balance of the Loan exceeds Twenty Million Dollars ($20,000,000) on December 31, 2013, Borrower shall make a principal payment to Lender on December 31, 2013 in such amount as will reduce the principal balance of the Loan to Twenty Million Dollars ($20,000,000), and (ii) if the Obligations shall become due and payable in accordance with Section 14 or any other provision of this Agreement prior to the scheduled Maturity Date, then the Maturity Date shall be the date on which the Obligations become due and payable.

 

Section 2.3                                    Amendment Fee.  In consideration of Lender’s entering into this Agreement, on the Effective Date, Borrower shall pay to Lender a fee (the “Amendment Fee”) in the amount of $60,170.   The Amendment Fee shall be fully earned and non-refundable upon the Effective Date.

 

ARTICLE III
 CONDITIONS TO EFFECTIVENESS

 

Section 3.1                                    Conditions Precedent.  This Agreement shall become effective as of the Effective Date upon the satisfaction of each of the following conditions:

 

(a)                                 receipt by Lender of duly executed counterparts of this Agreement from Borrower and each Guarantor;

 

(b)                                 receipt by Lender of the Amendment Fee;

 

(c)                                  Borrower shall have entered into the Wells Fargo Amendment and delivered a copy thereof to Lender; and

 

(d)                                 if required by Lender, Borrower shall have paid all costs and expenses of Lender in connection with this Agreement, the Loan Documents and the transactions contemplated hereby including an estimate of anticipated closing costs (it being understood that if Lender elects not to require payment prior to closing, Borrower shall pay such amounts upon being billed therefor by Lender).

 

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ARTICLE IV
 MISCELLANEOUS

 

Section 4.1                                    Representations and Warranties.  Each Credit Party hereby represents and warrants to Lender that (a) each Credit Party has the legal power and authority to execute and deliver this Agreement; (b) the officers of each Credit Party executing this Agreement have been duly authorized to execute and deliver the same and bind each Credit Party with respect to the provisions hereof; (c) the execution and delivery hereof by each Credit Party and the performance and observance by each Credit Party of the provisions hereof do not violate or conflict with any organizational document of any Person party hereto or any law applicable to any Credit Party or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against any Credit Party; (d)  no Default or Event of Default exists under the Loan Agreement, nor will any occur immediately after the execution and delivery of this Agreement or by the performance or observance of any provision hereof; (e) no Credit Party is aware of any claim or offset against, or defense or counterclaim to, any of their obligations or liabilities under the Loan Agreement or any other Loan Document; and (f) this Agreement and each document executed by any Credit Party in connection herewith constitute valid and binding obligations of the applicable Person in every respect, enforceable in accordance with their terms.

 

Section 4.2                                    Release.  Each Credit Party hereby releases, remises, acquits and forever discharges Lender and its employees, agents, representatives, consultants, attorneys, fiduciaries, officers, directors, partners, predecessors, successors and assigns, subsidiary corporations, parent corporations, and related corporate divisions (collectively, the “Released Parties”), from any and all actions and causes of action, judgments, executions, suits, debts, claims, demands, liabilities, obligations, damages and expenses of any and every character, known or unknown, direct and/or indirect, at law or in equity, of whatsoever kind or nature, for or because of any matter or things done, omitted or suffered to be done by any of the Released Parties prior to and including the effectiveness of this Agreement, and in any way directly or indirectly arising out of or in any way connected to the Loan Agreement or the Loan Documents (collectively, the “Released Matters”).  Each Credit Party acknowledges that the agreements in this paragraph are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Released Matters.

 

Each Credit Party hereby waives the provisions of any statute or doctrine to the effect that a general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.   Without limiting the generality of the foregoing, each Credit Party hereby waives the provisions of any statute that prevents a general release from extending to claims unknown by the releasing party, including Section 1542 of the California Civil Code which provides:

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

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Each Credit Party acknowledges and understands the rights and benefits conferred by such a statute or doctrine and the risks associated with waiver thereof, and after receiving advice of counsel, hereby consciously and voluntarily waives, relinquishes and releases any and all rights and benefits available thereunder, insofar as they apply, or may be construed to apply, to each release set forth herein or contemplated hereby.  In so doing, each Credit Party expressly acknowledges and understands that it may hereafter discover facts in addition to or different from those that it now believes to be true with respect to the subject matter of the disputes, claims and other matters released herein, but expressly agrees that it has taken these facts and possibilities into account in electing to make and to enter into this release, and that the releases given herein shall be and remain in effect as full and complete releases notwithstanding the discovery or existence of any such additional or different facts or possibilities.

 

This release may be pleaded as a full and complete defense and/ or as a cross-complaint or counterclaim against any action, suit, or other proceeding that may be instituted, prosecuted or attempted in breach of this release.  Each Credit Party acknowledges that the release contained herein constitutes a material inducement to Lender to enter into this Agreement and that Lender would not have done so but for Lender’s expectation that such release is valid and enforceable in all events.

 

Section 4.3                                    Covenant Not to Sue.  Each Credit Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Released Party that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Released Party on the basis of any claim released, remised and discharged by such Credit Party pursuant to Section 4.2 above.  If any Credit Party or any of its successors, assigns or other legal representatives violates the foregoing covenant, such Credit Party, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Released Party may sustain as a result of such violation, all attorneys’ fees and costs incurred by any Released Party as a result of such violation.

 

Section 4.4                                    Loan Documents Unaffected.  Except as otherwise specifically provided herein, all provisions of the Loan Agreement and the other Loan Documents shall remain in full force and effect and be unaffected hereby.  The parties hereto acknowledge and agree that this Agreement constitutes a “Loan Document” under the terms of the Loan Agreement.

 

Section 4.5                                    Guarantor Acknowledgement.  Each Guarantor, by signing this Agreement:

 

(a)                                 consents and agrees to and acknowledges the terms of this Agreement;

 

(b)                                 acknowledges and agrees that all of the Loan Documents to which such Guarantor is a party or otherwise bound shall continue in full force and effect and that all of such Guarantor’s obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Agreement;

 

(c)                                  represents and warrants to Lender that all representations and warranties made by such Guarantor and contained in this Agreement or any other Loan Document to which it is a party are true and correct in all material respects on and as of the date of this Agreement to the same extent as though made on and as of such date, except to the extent that any thereof expressly relate to an earlier date; and

 

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(d)                                 acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Agreement, such Guarantor consent to this Agreement is not required under the terms of the Loan Agreement or any other Loan Document or as a matter of law, and (ii) nothing in the Loan Agreement, this Agreement or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendments to, modifications of, consents under, or forbearances or waivers with regard to, the Loan Agreement.

 

Section 4.6                                    Costs, Expenses and Taxes.                                          Borrower agrees to pay on demand all costs and expenses of Lender in connection with the preparation, execution, delivery, administration, modification and amendment of this Agreement and the other instruments and documents to be delivered hereunder, including the reasonable fees and out-of-pocket expenses of counsel for Lender with respect thereto and with respect to advising Lender as to its rights and responsibilities hereunder and thereunder.  Borrower further agrees to pay on demand all costs and expenses, if any (including  reasonable counsel fees and expenses), in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement and any other instruments and documents to be delivered hereunder, including  reasonable counsel fees and expenses in connection with the enforcement of rights under this section.  In addition, Borrower shall pay any and all stamp and other taxes payable or determined to be payable in connection with the execution and delivery of this Agreement and any other instruments and documents to be delivered hereunder, and agrees to save Lender harmless from and against any and all liabilities with respect to or resulting from any delay or omission to pay such taxes.  The foregoing agreements shall be in addition to and not in lieu of any similar obligations under the Loan Documents.

 

Section 4.7                                    No Other Promises or Inducements.  There are no promises or inducements that have been made to any party hereto to cause such party to enter into this Agreement other than those that are set forth in this Agreement.  This Agreement has been entered into by each Credit Party freely, voluntarily, with full knowledge, and without duress, and, in executing this Agreement, no Credit Party is relying on any other representations, either written or oral, express or implied, made to any Credit Party by Lender.  Each Credit Party agrees that the consideration received by each Credit Party under this Agreement has been actual and adequate.

 

Section 4.8                                    No Course of Dealing.  Each Credit Party acknowledges and agrees that, (a) this Agreement is not intended to, nor shall it, establish any course of dealing between the Credit Parties and Lender that is inconsistent with the express terms of the Loan Agreement or any other Loan Document, (b) notwithstanding any course of dealing between the Credit Parties and Lender prior to the date hereof, except as set forth herein, Lender shall not be obligated to make any Loan, except in accordance with the terms and conditions of this Agreement and the Loan Agreement, and (c) Lender shall be under any obligation to forbear from exercising any of its rights or remedies upon the occurrence of any Default or Event of Default.

 

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Section 4.9                                    No Waiver.  Each Credit Party acknowledges and agrees that (a) except as expressly provided herein, this Agreement shall not operate as a waiver of any right, power or remedy of Lender under the Loan Agreement or any other Loan Document, nor shall it constitute a continuing waiver at any time, and (b) nothing herein shall in any way prejudice the rights and remedies of Lender under the Loan Agreement, any Loan Document or applicable law.  In addition, Lender shall have the right to waive any condition or conditions set forth in this Agreement, the Loan Agreement or any other Loan Document, in its sole discretion, and any such waiver shall not prejudice, waive or reduce any other right or remedy that Lender may have against any Credit Party.

 

Section 4.10                             Reaffirmation.  Each Credit Party, as debtor, grantor, pledgor, guarantor, assignor, or in other any other similar capacity in which such Credit Party grants liens or security interests in its property or otherwise acts as accommodation party or guarantor, as the case may be, hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Loan Documents to which it is a party (after giving effect hereto) and (ii) to the extent such Person granted liens on or security interests in any of its property pursuant to any such Loan Document as security for the Obligations under or with respect to the Loan Documents, ratifies and reaffirms such grant of security interests and liens and confirms and agrees that such security interests and liens hereafter secure all of the Obligations as amended hereby.  Each Credit Party hereby acknowledges that each of the Loan Documents remains in full force and effect and is hereby ratified and reaffirmed.  The execution of this Amendment shall not operate as a waiver of any right, power or remedy of Lender, constitute a waiver of any provision of any of the Loan Documents or serve to effect a novation of the Obligations.  Each Credit Party acknowledges that all references in the Loan Agreement to the “Agreement” or the “Loan Agreement” shall mean the Loan Agreement, as amended hereby, and all references in the Loan Documents to the “Loan Agreement” shall mean the Loan Agreement, as amended hereby.

 

Section 4.11                             Survival.  All representations, warranties, covenants, agreements, releases and waivers made by or on behalf of any Credit Party under this Agreement shall survive and continue.

 

Section 4.12                             Modification; Waiver. This Agreement may not be modified orally, but only by an agreement in writing signed by the parties hereto.  Any provision of this Agreement can be waived, amended, supplemented or modified by written agreement of the parties hereto.

 

Section 4.13                             Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

 

Section 4.14                             Entire Agreement.  This Agreement sets forth the entire agreement and understanding among the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements, and undertakings of every kind and nature among them with respect to the subject matter hereof.

 

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Section 4.15                             Counterparts; Facsimile or Electronic Transmission of Signature.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  The manual signature of any party hereto that is transmitted to any other party or its counsel by facsimile or electronic transmission shall be deemed for all purposes to be an original signature.

 

Section 4.16                             Severability Of Provisions; Captions; Attachments; Interpretation.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The captions to Sections and subsections herein are inserted for convenience only and shall be ignored in interpreting the provisions of this Agreement.  Each schedule or exhibit attached to this Agreement shall be incorporated herein and shall be deemed to be a part hereof.  Words in the singular include the plural and words in the plural include the singular.  Use of the term “includes” or “including,” shall mean “including, but not limited to.”

 

Section 4.17                             JURY TRIAL WAIVER.  EACH OF THE UNDERSIGNED, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM HEREIN

 

[Remainder of page intentionally left blank; signatures begin on following page.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
MAUI   LAND & PINEAPPLE COMPANY, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   TIM T ESAKI
    
	
 
    	
Name:
    	
Tim   T Esaki
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   RYAN C CHURCHILL
    
	
 
    	
Name:
    	
Ryan   C Churchill
    
	
 
    	
Title:
    	
President &   Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
KAPALUA   LAND COMPANY, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   TIM T ESAKI
    
	
 
    	
Name:
    	
Tim   T Esaki
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   RYAN C CHURCHILL
    
	
 
    	
Name:
    	
Ryan   C Churchill
    
	
 
    	
Title:
    	
President &   Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MAUI   PINEAPPLE COMPANY, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   TIM T ESAKI
    
	
 
    	
Name:
    	
Tim   T Esaki
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   RYAN C CHURCHILL
    
	
 
    	
Name:
    	
Ryan   C Churchill
    
	
 
    	
Title:
    	
President &   Chief Operating Officer
    

 

 

[Signature Pages Continue]

 

Signature Page 1

 

	
 
    	
LENDER:
    
	
 
    	
 
    
	
 
    	
AMERICAN   AGCREDIT, FLCA
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   GARY VAN SCHUYVER
    
	
 
    	
Name:
    	
Gary   Van Schuyver
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Pages Continue]

 

Signature Page 2

 

EXHIBIT A

 

OUTSTANDING PRINCIPAL AMOUNT OF LOAN

 

As of February 14, 2013:  $24,068,000

 

1Exhibit 10.25

 

SETTLEMENT AGREEMENT

 

This Agreement (the “Agreement”), is entered into this 19th day of November, 2012 (the “Effective Date”), by and between Maui Land & Pineapple Company, Inc. (“MAUI”) and the Pension Benefit Guaranty Corporation, a United States government corporation (the “PBGC”; and, collectively with MAUI, the “Parties”).

 

WITNESSETH

 

WHEREAS, PBGC is a wholly-owned United States government corporation established under section 4002 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), 29 U.S.C. § 1302 (2006 & Supp. IV 2010) to administer the pension plan termination insurance program created by Title IV of ERISA, 29 U.S.C. §§ 1301-1461; and

 

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

 

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

 

WHEREAS, the PBGC asserts that MAUI ceased operations on or about March 31, 2011 at its facility located in Maui, Hawaii, and as a result, certain employees who are participants in the Pension Plans were separated from employment (the “Cessation of Operations” or the “Event”); and

 

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

 

WHEREAS, PBGC has estimated that MAUI’s liability under ERISA §4063(b) as a result of the Event is $18,713,067 (the “Event Liability”); and

 

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

 

 

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

 

1.                                      Mortgage Security

 

1.1                               To secure up to $18,713,067 of liability under 29 U.S.C. § 1362(a)(1) incurred upon any termination of the Pension Plans under 29 U.S.C. § 1341(c) or 29 U.S.C. § 1342 on or before the Agreement Termination Date (as defined in Section 3.1 below), MAUI will, on or before the thirtieth (30th) day following the Effective Date, execute a first lien mortgage in favor of PBGC (the “First PBGC Mortgage”) on the real properties described in Exhibit A hereto (“Mortgaged Property A”) and execute a second lien mortgage in favor of PBGC (the “Second PBGC Mortgage”, collectively with the First PBGC Mortgage, the “PBGC Mortgages”) on the real property described in Exhibit B hereto (“Mortgaged Property B”, collectively with Mortgaged Property A, the “Mortgaged Properties”).

 

1.2                               Following the Agreement Termination Date, and at MAUI’s sole expense, MAUI will provide to PBGC recordable discharges and releases of the PBGC Mortgages.  PBGC shall promptly execute and record such discharges and releases.  PBGC agrees, following the Agreement Termination Date, to execute such other documents as may be necessary to effect and evidence the termination, discharge and release of such PBGC Mortgages.

 

2.                                      Notice Requirements

 

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

 

(a)                                 Each of the Pension Plans’ actuarial valuation reports by October 31 of each plan year;

 

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

 

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

 

 

3.                                      Termination of the Agreement

 

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

 

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

 

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

 

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

 

4.                                      Representations and Warranties

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

5.                                      Default; Remedies

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)                                   Any of the Pension Plans terminate under 29 U.S.C. § 1341(c) or 29 U.S.C. § 1342;

 

(g)                                  The occurrence of a “default” (as defined therein) under the PBGC Mortgages.

 

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

 

 

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

 

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

 

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

 

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

 

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

 

6.                                      General Provisions

 

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

 

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

 

 

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

 

To MAUI:                                                                                       Tim Esaki

Chief Financial Officer

Maui Land & Pineapple Co., Inc.

200 Village Road

Lahaina, Hawaii  96761

Telephone:  (808) 665-5480

Facsimile:  (808) 442-1114

tesaki@mlpmaui.com

 

Robert Katz

Torkildson, Katz, Moore, Hetherington & Harris

700 Bishop Street, 15th Floor

Honolulu, Hawaii  96813

Telephone:  (808) 523-6000

Facsimile: (808) 523-6001

RSK@torkildson.com

 

To PBGC:                                                                                        Corporate Finance and Restructuring Department

Pension Benefit Guaranty Corporation

1200 K Street, N.W.

Washington, D.C.  20005-4026

Telephone: (202) 326-4070

Facsimile: (202) 842-2643

Gran.Christopher@pbgc.gov

 

Office of the Chief Counsel

Pension Benefit Guaranty Corporation

1200 K Street, N.W.

Washington, D.C.  20005-4026

Telephone: (202) 326-4020

Facsimile: (202) 326-4112

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

 

	
MAUI   LAND & PINEAPPLE COMPANY, INC.
    	
 
    	
PENSION BENEFIT GUARANTY CORPORATION
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ RYAN CHURCHILL
    	
 
    	
By:
    	
/s/ JENNIFER MESSINA
    
	
 
    	
Ryan Churchill
    	
 
    	
 
    	
Jennifer Messina
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
President & COO
    	
 
    	
Title:
    	
Director, Corporate Finance and
    
	
 
    	
 
    	
 
    	
 
    	
Restructuring Department
    
	
Date:
    	
November 13, 2012
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Date:
    	
November 19, 2012
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ TIM ESAKI
    	
 
    	
 
    	
 
    
	
 
    	
Tim T. Esaki
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CFO
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
November 13, 2012

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