Document:

Exhibit 10.3

MAUI LAND &
PINEAPPLE COMPANY, INC.

 

2006 EQUITY
AND INCENTIVE AWARD PLAN

 

STOCK OPTION
GRANT NOTICE

 

Maui Land &
Pineapple Company, Inc., a Hawaii corporation (the “Company”), pursuant
to its 2006 Equity and Incentive Award Plan (the “Plan”), hereby
grants to the holder listed below (“Participant”), an
option to purchase the number of shares of the Company’s common stock, no par
value (“Stock”), set forth below (the
“Option”).  This
Option is subject to all of the terms and conditions set forth herein and in
the Stock Option Agreement attached hereto as Exhibit A (the “Stock Option Agreement”) and the
Plan, which are incorporated herein by reference.  Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Grant Notice.

 

	
  Participant:

  	
  John P. Durkin

  
	
   

  	
   

  
	
  Grant
  Date:

  	
  April 15, 2009

  
	
   

  	
   

  
	
  Exercise
  Price per Share:

  	
  $7.78

  
	
   

  	
   

  
	
  Total
  Number of Shares Subject to the Option:

  	
  20,000

  
	
   

  	
   

  
	
  Expiration
  Date:

  	
  April 15, 2019

  

 

	
  Type of Option:

  	
  Non-Qualified Stock Option

  
	
   

  	
   

  
	
  Vesting Schedule:

  	
  Subject to the terms and conditions of the Plan, this Grant Notice
  and the Stock Option Agreement, this Option shall vest and become exercisable
  as to:

  
	
   

  	
   

  
	
   

  	
  (i)                               20% of the total
  number of shares of Stock subject to the Option on April 15, 2010.,

  (ii)                            20% of the total number
  of shares of Stock subject to the Option on April 15, 2011,

  (iii)                         20% of the total number of
  shares of Stock subject to the Option on April 15, 2012,

  (iv)                        20% of the total number of
  shares of Stock subject to the Option on April 15, 2013, and

  (v)                           20% of the total number of
  shares of Stock subject to the Option on April 15, 2014.

   

  
	
   

  	
  In no
  event, however, shall this Option vest and become exercisable for any
  additional shares of Stock following Participant’s Termination of Employment.

   

  Notwithstanding the vesting schedule stated above, in the event of a
  Change-In-Control as defined in Section 1.6 of the Plan, all Options
  shall immediately vest.

  

 

Remainder
of page intentionally left blank.

 

 

By his or her signature,
Participant agrees to be bound by the terms and conditions of the Plan, the
Stock Option Agreement and this Grant Notice. 
Participant has reviewed the Stock Option Agreement, the Plan and this
Grant Notice in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Grant Notice and fully understands all
provisions of this Grant Notice, the Stock Option Agreement and the Plan.  Participant hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under or relating to the Plan, this
Grant Notice or the Stock Option Agreement.

 

 

	
  MAUI LAND & PINEAPPLE COMPANY, INC.:

  	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /S/
  WARREN H. HARUKI

  	
   

  	
  By:

  	
  /S/
  JOHN P. DURKIN

  
	
  Print
  Name:

  	
  Warren
  H. Haruki

  	
   

  	
  Print
  Name:

  	
  John
  P. Durkin

  
	
  Title:

  	
  Executive
  Chairman

  	
   

  	
   

  	
   

  
	
  Address:

  	
  P.O. Box
  187

  	
   

  	
  Address:

  	
   

  
	
   

  	
  Kahului,
  Maui, Hawaii 96733

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  May 4,
  2009

  	
   

  	
   

  	
   

  

 

 

	
  Attachments:

  	
  Stock Option Agreement (Exhibit A)

  
	
   

  	
  Form of Exercise Notice (Exhibit B)

  
	
   

  	
  Maui Land & Pineapple Company, Inc. 2006 Equity and
  Incentive Award Plan (Exhibit C)

  
	
   

  	
  Maui Land & Pineapple
  Company, Inc. 2006 Equity and Incentive Award Plan Prospectus (Exhibit D)

  

 

 

EXHIBIT A

 

TO STOCK
OPTION GRANT NOTICE

 

STOCK OPTION
AGREEMENT

 

Pursuant to the Stock Option
Grant Notice (the “Grant Notice”) to which
this Stock Option Agreement (this “Agreement”) is attached,
Maui Land & Pineapple Company, Inc., a Hawaii corporation (the “Company”), has granted to Participant an option
under the Company’s 2006 Equity and Incentive Award Plan (the “Plan”) to purchase the number of shares of
the Company’s common stock, no par value (“Stock”),
indicated in the Grant Notice.

 

ARTICLE I

 

GENERAL

 

1.1                                 Defined
Terms.  Wherever the following terms
are used in this Agreement they shall have the meanings specified below, unless
the context clearly indicates otherwise. 
Capitalized terms not specifically defined herein shall have the
meanings specified in the Grant Notice or, if not defined therein, the Plan.

 

“Cause” shall mean (i) the
commission of any act of fraud, embezzlement or dishonesty by Participant that
adversely affects the Company or any Subsidiary, (ii) any unauthorized use
or disclosure by Participant of confidential information or trade secrets of
the Company or any Subsidiary that adversely affects the Company or any
Subsidiary, (iii) any willful and continued failure by Participant to
substantially perform his or her duties with the Company or any  Subsidiary (other than any such failure
resulting from Participant’s incapacity due to physical or mental illness),
after a written demand for substantial performance is delivered to Participant
by the Board, which demand specifically identifies the manner in which the
Board believes that Participant has not substantially performed such duties, or
(iv) any willful and continued failure by Participant to substantially
follow and comply with the specific and lawful directives of the Board, as
reasonably determined by the Board (other than any such failure resulting from
Participant’s incapacity due to physical or mental illness), after a written
demand for substantial performance is delivered to Participant by the Board,
which demand specifically identifies the manner in which the Board believes
that Participant has not substantially performed such directives.  The foregoing definition shall not in any way
preclude or restrict the right of the Company (or any Subsidiary) to discharge
or dismiss Participant or any other person in the service of the Company (or
any Subsidiary) for any other acts or omissions, but such other acts or
omissions shall not be deemed, for purposes of this Agreement, to constitute
grounds for termination for Cause.

 

1.2                                 Incorporation
of Terms of Plan.  The Option is subject
to the terms and conditions of the Plan which are incorporated herein by
reference.

 

ARTICLE II

 

GRANT OF OPTION

 

2.1                                 Grant
of Option.  In consideration of
Participant’s past and/or continued employment with or service to the Company
or a Parent or Subsidiary and for other good and valuable consideration,
effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the
Company irrevocably grants to Participant the Option to purchase any part or
all of an aggregate of the number of shares of Stock set forth in the Grant
Notice, upon the terms and conditions set forth in the Plan and this 

 

 

Agreement.  Unless designated as a Non-Qualified Stock
Option in the Grant Notice, the Option shall be an Incentive Stock Option to
the maximum extent permitted by law.

 

2.2                                 Exercise
Price.  The exercise price of the
shares of Stock subject to the Option shall be as set forth in the Grant
Notice, without commission or other charge; provided,
however, that the exercise price
per share of Stock subject to the Option shall not be less than 100% of the
Fair Market Value of a share of Stock on the Grant Date.  Notwithstanding the foregoing, if this Option
is designated as an Incentive Stock Option and Participant owns (within the
meaning of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or any “subsidiary
corporation” of the Company or any “parent corporation” of the Company (each
within the meaning of Section 424 of the Code), the exercise price per
share of Stock subject to the Option shall not be less than 110% of the Fair
Market Value of a share of Stock on the Grant Date.

 

2.3                                 Consideration
to the Company; No Employment Rights. 
In consideration of the grant of the Option by the Company, Participant
agrees to render faithful and efficient services to the Company or any Parent
or Subsidiary.  Nothing in the Plan or
this Agreement shall confer upon Participant any right to continue in the
employ or service of the Company or any Parent or Subsidiary or shall interfere
with or restrict in any way the rights of the Company and its Parents and
Subsidiaries, which rights are hereby expressly reserved, to discharge or
terminate the services of Participant at any time for any reason whatsoever,
with or without cause, except to the extent expressly provided otherwise in a
written agreement between the Company, a Parent or a Subsidiary and
Participant.

 

ARTICLE III

 

PERIOD OF EXERCISABILITY

 

3.1                                 Commencement
of Exercisability.

 

(a)                                  Subject to Sections 3.2, 3.3, and 5.8, the
Option shall become vested and exercisable in such amounts and at such times as
are set forth in the Grant Notice.

 

(b)                                 No portion of the Option which has not become
vested and exercisable at the date of Participant’s Termination of Employment,
Termination of Directorship or Termination of Consultancy shall thereafter
become vested and exercisable, except as may be otherwise provided by the
Administrator or as set forth in a written agreement between the Company and
Participant.

 

3.2                                 Duration
of Exercisability.  The installments
provided for in the vesting schedule set forth in the Grant Notice are
cumulative.  Each such installment which
becomes vested and exercisable pursuant to the vesting schedule set forth in
the Grant Notice shall remain vested and exercisable until it becomes
unexercisable under Section 3.3.

 

3.3                                 Expiration
of Option.  The Option may not be
exercised to any extent by anyone after the first to occur of the following
events:

 

(a)                                  The expiration of ten years from the Grant
Date;

 

(b)                                 If this Option is designated as an Incentive
Stock Option and Participant owned (within the meaning of Section 424(d) of
the Code), at the time the Option was granted, more than 10% of the total
combined voting power of all classes of stock of the Company or any “subsidiary
corporation” of the Company or any “parent corporation” of the Company (each
within the meaning of Section 424 of the Code), the expiration of five
years from the Grant Date;

 

A-2

 

(c)                                  The expiration of six months following the
date of Participant’s Termination of Employment, Termination of Directorship or
Termination of Consultancy, unless such termination occurs by reason of
Participant’s death or Disability or Participant’s discharge for Cause;

 

(d)                                 The expiration of twelve months following the
date of Participant’s Termination of Employment, Termination of Directorship or
Termination of Consultancy by reason of Participant’s death or Disability; or

 

(e)                                  The date of Participant’s Termination of
Employment, Termination of Directorship or Termination of Consultancy by the
Company or any Parent or Subsidiary by reason of Participant’s discharge for
Cause.

 

Participant acknowledges
that an Incentive Stock Option exercised more than three months after
Participant’s Termination of Employment, other than by reason of death or
Disability, will be taxed as a Non-Qualified Stock Option.

 

3.4                                 Special Tax Consequences. 
Participant acknowledges that, to the extent that the aggregate Fair
Market Value (determined as of the time the Option is granted) of all shares of
Stock with respect to which Incentive Stock Options, including the Option, are
exercisable for the first time by Participant in any calendar year exceeds
$100,000, the Option and such other options shall be Non-Qualified Stock
Options to the extent necessary to comply with the limitations imposed by Section 422(d) of
the Code.  Participant further
acknowledges that the rule set forth in the preceding sentence shall be
applied by taking the Option and other “incentive stock options” into account
in the order in which they were granted, as determined under Section 422(d) of
the Code and the Treasury Regulations thereunder.

 

ARTICLE IV

 

EXERCISE OF OPTION

 

4.1                                 Person
Eligible to Exercise.  Except as
provided in Section 5.2, during the lifetime of Participant, only
Participant may exercise the Option or any portion thereof.  After the death of Participant, any
exercisable portion of the Option may, prior to the time when the Option
becomes unexercisable under Section 3.3, be exercised by Participant’s
personal representative or by any person empowered to do so under the deceased
Participant’s will or under the then applicable laws of descent and
distribution.

 

4.2                                 Partial
Exercise.  Any exercisable portion of
the Option or the entire Option, if then wholly exercisable, may be exercised
in whole or in part at any time prior to the time when the Option or portion
thereof becomes unexercisable under Section 3.3.

 

4.3                                 Manner
of Exercise.  The Option, or any
exercisable portion thereof, may be exercised solely by delivery to the
Secretary of the Company or the Secretary’s office of all of the following
prior to the time when the Option or such portion thereof becomes unexercisable
under Section 3.3:

 

(a)                                  An Exercise Notice in writing signed by
Participant or any other person then entitled to exercise the Option or portion
thereof, stating that the Option or portion thereof is thereby exercised, such
notice complying with all applicable rules established by the
Administrator.  Such notice shall be
substantially in the form attached as Exhibit B to the Grant Notice
(or such other form as is prescribed by the Administrator);

 

A-3

 

(b)                                 The receipt by the Company of full payment
for the shares with respect to which the Option or portion thereof is
exercised, including payment of any applicable withholding tax, which may be in
one or more of the forms of consideration permitted under Section 4.4;

 

(c)                                  A bona fide written representation and
agreement, in such form as is prescribed by the Administrator, signed by
Participant or the other person then entitled to exercise such Option or
portion thereof, stating that the shares of Stock are being acquired for
Participant’s own account, for investment and without any present intention of
distributing or reselling said shares or any of them except as may be permitted
under the Securities Act and then applicable rules and regulations
thereunder and any other applicable law, and that Participant or other person
then entitled to exercise such Option or portion thereof will indemnify the
Company against and hold it free and harmless from any loss, damage, expense or
liability resulting to the Company if any sale or distribution of the shares by
such person is contrary to the representation and agreement referred to
above.  The Administrator may, in its
absolute discretion, take whatever additional actions it deems appropriate to
ensure the observance and performance of such representation and agreement and
to effect compliance with the Securities Act and any other federal or state
securities laws or regulations and any other applicable law.  Without limiting the generality of the
foregoing, the Administrator may require an opinion of counsel acceptable to it
to the effect that any subsequent transfer of shares acquired on an Option
exercise does not violate the Securities Act, and may issue stop-transfer
orders covering such shares.  Share
certificates evidencing Stock issued on exercise of the Option shall bear an
appropriate legend referring to the provisions of this subsection (c) and
the agreements herein.  The written
representation and agreement referred to in the first sentence of this
subsection (c) shall, however, not be required if the shares to be issued
pursuant to such exercise have been registered under the Securities Act, and
such registration is then effective in respect of such shares; and

 

(d)                                 In the event the Option or portion thereof
shall be exercised pursuant to Section 4.1 by any person or persons other
than Participant, appropriate proof of the right of such person or persons to
exercise the Option.

 

4.4                                 Method
of Payment.  Payment of the exercise
price shall be by any of the following, or a combination thereof, at the
election of the Participant:

 

(a)                                  cash;

 

(b)                                 check;

 

(c)                                  to the extent permitted under applicable
laws, delivery of a notice that the Participant has placed a market sell order with a broker with respect to shares of
Stock then issuable upon exercise of the Option, and that the broker has been
directed to pay a sufficient portion of the net proceeds of the sale to the
Company in satisfaction of the aggregate exercise price;  provided, that
payment of such proceeds is then made to the Company upon settlement of such
sale;

 

(d)                                 with the consent of the Administrator,
through the delivery of shares of Stock which have been owned by the
Participant for at least six (6) months, duly endorsed for transfer to the
Company with a Fair Market Value on the date of exercise equal to the aggregate
exercise price of the Option or exercised portion thereof; or

 

(e)                                  any combination of the consideration provided
in the foregoing.

 

4.5                                 Conditions
to Issuance of Stock Certificates. 
The shares of Stock deliverable upon the exercise of the Option, or any
portion thereof, may be either previously authorized but unissued shares or

 

A-4

 

issued shares which have
then been reacquired by the Company. 
Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or
deliver any shares of Stock purchased upon
the exercise of the Option or portion thereof prior to fulfillment of all of
the following conditions:

 

(a)                                  The admission
of such shares to listing on all stock exchanges on which such Stock is then
listed;

 

(b)                                 The completion
of any registration or other qualification of such shares under any state or
federal law or under rulings or regulations of the Securities and Exchange
Commission or of any other governmental regulatory body, which the
Administrator shall, in its absolute discretion, deem necessary or advisable;

 

(c)                                  The obtaining
of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its absolute discretion, determine to
be necessary or advisable;

 

(d)                                 The receipt by
the Company of full payment for such shares, including payment of any applicable
withholding tax, which may be in one or more of the forms of consideration
permitted under Section 4.4; and

 

(e)                                  The lapse of
such reasonable period of time following the exercise of the Option as the
Administrator may from time to time establish for reasons of administrative
convenience.

 

4.6                                 Rights as
Stockholder.  The holder
of the Option shall not be, nor have any of the rights or privileges of, a
stockholder of the Company in respect of any shares purchasable upon the
exercise of any part of the Option unless and until such shares shall have been
issued by the Company to such holder (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the
Company).  No adjustment will be made for
a dividend or other right for which the record date is prior to the date the
shares are issued, except as provided in Section 11.3 of the Plan.

 

ARTICLE
V

OTHER PROVISIONS

 

5.1                                 Administration.  The Administrator shall have the power to
interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and
determinations made by the Administrator in good faith shall be binding,
conclusive and final upon Participant, the Company and all other interested
persons.  No member of the Administrator
shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, this Agreement or the Option.  In its absolute discretion, the Board may at
any time and from time to time exercise any and all rights and duties of the
Administrator under the Plan and this Agreement.

 

5.2                                 Option Not
Transferable.

 

(a)                                  Subject to Section 5.2(b),
the Option may not be sold, pledged, assigned or transferred in any manner
other than by will or the laws of descent and distribution.  Neither the Option nor any interest or right
therein shall be liable for the debts, contracts or engagements of Participant
or his or her successors in interest or shall be subject to disposition by
transfer, alienation, anticipation, pledge, encumbrance, assignment or any
other means whether such disposition be voluntary or involuntary or by 

 

A-5

 

operation
of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect,
except to the extent that such disposition is permitted by the preceding
sentence.

 

(b)                                 Notwithstanding
any other provision in this Agreement, with the consent of the Administrator
and to the extent the Option is not intended to qualify as an Incentive Stock
Option, the Option may be transferred to one or more Permitted Transferees,
subject to the terms and conditions set forth in Section 11.1(b) of
the Plan.

 

(c)                                  Unless
transferred to a Permitted Transferee in accordance with Section 5.2(b),
during the lifetime of Participant, only Participant may exercise the Option or
any portion thereof.  Subject to such
conditions and procedures as the Administrator may require, a Permitted
Transferee may exercise the Option or any portion thereof during Participant’s
lifetime.  After the death of
Participant, any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3, be exercised by
Participant’s personal representative or by any person empowered to do so under
the deceased Participant’s will or under the then applicable laws of descent
and distribution.

 

5.3                                 Restrictive
Legends and Stop-Transfer Orders.

 

(a)                                  The share
certificate or certificates evidencing the shares of Stock purchased hereunder
shall be endorsed with any legends that may be required by state or federal
securities laws.

 

(b)                                 Participant
agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and that, if the Company transfers its own securities, it may
make appropriate notations to the same effect in its own records.

 

(c)                                  The Company
shall not be required: (i) to transfer on its books any shares of Stock
that have been sold or otherwise transferred in violation of any of the
provisions of this Agreement, or (ii) to treat as owner of such shares of
Stock or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such shares shall have been so transferred.

 

5.4                                 Shares to Be
Reserved.  The Company
shall at all times during the term of the Option reserve and keep available
such number of shares of Stock as will be sufficient to satisfy the
requirements of this Agreement.

 

5.5                                 Notices.  Any notice to be given under the terms of
this Agreement to the Company shall be addressed to the Company in care of the
Secretary of the Company at the address given beneath the signature of the
Company’s authorized officer on the Grant Notice, and any notice to be given to
Participant shall be addressed to Participant at the address given beneath
Participant’s signature on the Grant Notice. 
By a notice given pursuant to this Section 5.5, either party may
thereafter designate a different address for notices to be given to that
party.  Any notice which is required to
be given to Participant shall, if Participant is then deceased, be given to the
person entitled to exercise his or her Option pursuant to Section 4.1 by
written notice under this Section 5.5. 
Any notice shall be deemed duly given when sent via email or when sent
by certified mail (return receipt requested) and deposited (with postage
prepaid) in a post office or branch post office regularly maintained by the
United States Postal Service.

 

5.6                                 Titles.  Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of this
Agreement.

 

A-6

 

5.7                                 Governing Law;
Severability.  This
Agreement shall be administered, interpreted and enforced under the laws of the
State of Hawaii, without regard to the conflicts of law principles
thereof.  Should any provision of this
Agreement be determined by a court of law to be illegal or unenforceable, the
other provisions shall nevertheless remain effective and shall remain
enforceable.

 

5.8                                 Conformity to
Securities Laws.  Participant
acknowledges that the Plan is intended to conform to the extent necessary with
all provisions of the Securities Act and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange
Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the
contrary, the Plan shall be administered, and the Option is granted and may be
exercised, only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

 

5.9                                 Amendments.  This Agreement may not be modified, amended
or terminated except by an instrument in writing, signed by Participant or such
other person as may be permitted to exercise the Option pursuant to Section 4.1
and by a duly authorized representative of the Company.

 

5.10                           Successors and
Assigns.  The Company may assign any of
its rights under this Agreement to single or multiple assignees, and this
Agreement shall inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on
transfer herein set forth in Section 5.2, this Agreement shall be binding
upon Participant and his or her heirs, executors, administrators, successors
and assigns.

 

5.13                           Notification of
Disposition.  If this
Option is designated as an Incentive Stock Option, Participant shall give
prompt notice to the Company of any disposition or other transfer of any shares
of Stock acquired under this Agreement if such disposition or transfer is made (a) within
two years from the Grant Date with respect to such shares or (b) within
one year after the transfer of such shares to him.  Such notice shall specify the date of such
disposition or other transfer and the amount realized, in cash, other property,
assumption of indebtedness or other consideration, by Participant in such
disposition or other transfer.

 

5.14                           Limitations
Applicable to Section 16 Persons.  Notwithstanding any other provision of the
Plan or this Agreement, if Participant is subject to Section 16 of the
Exchange Act, the Plan, the Option and this Agreement shall be subject to any
additional limitations set forth in any applicable exemptive rule under Section 16
of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange
Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law,
this Agreement shall be deemed amended to the extent necessary to conform to
such applicable exemptive rule.

 

5.15                           Entire
Agreement.  The Plan
and this Agreement (including all Exhibits hereto) constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings
and agreements of the Company and Participant with respect to the subject
matter hereof.

 

A-7

 

EXHIBIT B

 

TO STOCK
OPTION GRANT NOTICE

 

FORM OF
EXERCISE NOTICE

 

Effective
as of today,                                 
      , 20      ,
the undersigned (“Participant”)
hereby elects to exercise Participant’s option to purchase the number of shares
of common stock specified below (the “Shares”)  of Maui Land & Pineapple
Company, Inc., a Hawaii corporation (the “Company”),  under and pursuant to the Maui Land &
Pineapple Company, Inc. 2006 Equity and Incentive Award Plan (the “Plan”), the Stock Option Grant
Notice dated as of
           ,
20       and the Stock Option Agreement attached
thereto (the “Option Agreement”).  Capitalized
terms used herein without definition shall have the meanings given in the Plan
and, if not defined in the Plan, the Option Agreement.

 

	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of Shares as to which Option is Exercised:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Exercise Price:

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  Certificate to be issued in name of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Payment delivered herewith:

  	
   

  	
  $

  	
   

  	
  (Representing
  the full exercise price for 

  
	
   

  	
   

  	
  the
  Shares, as well as any applicable withholding tax)

  
	
   

  	
   

  	
  Form of
  Payment: 

  	
   

  	
   

  
	
   

  	
   

  	
  (Please specify)

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
   

  	
  o  Incentive
  Stock Option    o  Non-Qualified
  Stock Option

  
									

 

Participant
acknowledges that Participant has received, read and understood the Plan and
the Option Agreement.  Participant agrees
to abide by and be bound by their terms and conditions.  Participant understands that Participant may
suffer adverse tax consequences as a result of Participant’s purchase or
disposition of the Shares.  Participant
represents that Participant has consulted with any tax consultants Participant
deems advisable in connection with the purchase or disposition of the Shares
and that Participant is not relying on the Company for any tax advice.  The Plan and Option Agreement are
incorporated herein by reference.  This
Exercise Notice, the Plan and the Option Agreement constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings
and agreements of the Company and Participant with respect to the subject
matter hereof.

 

	
  ACCEPTED BY:

  MAUI LAND & PINEAPPLE COMPANY, INC.

  	
   

  	
  SUBMITTED BY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
  Print
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
									

 

 

EXHIBIT C

 

TO STOCK
OPTION GRANT NOTICE

 

MAUI LAND &
PINEAPPLE COMPANY, INC. 

2006 EQUITY AND INCENTIVE AWARD PLAN

 

 

EXHIBIT D

 

TO STOCK
OPTION GRANT NOTICE

 

MAUI LAND &
PINEAPPLE COMPANY, INC. 

2006 EQUITY AND INCENTIVE AWARD PLAN PROSPECTUSExhibit 10.4

 

MAUI LAND &
PINEAPPLE COMPANY, INC.

2006 EQUITY
AND INCENTIVE AWARD PLAN

RESTRICTED
STOCK AWARD GRANT NOTICE

 

Maui Land &
Pineapple Company, Inc., a Hawaii corporation (the “Company”), pursuant
to the provisions of its 2006 Equity and Incentive Award Plan (the “Plan”), hereby grants to the holder listed
below (“Holder”), the
number of shares of the Company’s common stock, no par value (“Stock”), set forth below (the “Shares”).  This Restricted Stock award is subject to all
of the terms and conditions as set forth herein and in the Restricted Stock
Award Agreement attached hereto as Exhibit A (the “Restricted Stock Agreement”) and the
Plan, each of which are incorporated herein by reference.  Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Restricted
Stock Award Grant Notice (the “Grant Notice”).  Shares that are released from Forfeiture
Restrictions in accordance with Sections 3.2 and 3.3 of the Restricted Stock
Agreement are referred to in this Grant Notice as “Released
Shares.”

 

	
  Holder:

  	
  John P. Durkin

  
	
   

  	
   

  
	
  Grant Date:

  	
  April 15,
  2009

  
	
   

  	
   

  
	
  Total Number of Restricted Shares:

  	
  15,000

  
	
   

  	
   

  
	
  Performance Vesting Criteria:

  	
  Subject
  to the terms and conditions of the Plan, this Grant Notice and the Restricted
  Stock Agreement, up to 3,000 Shares shall vest and become Released Shares
  following each of the fiscal years ending December 31, 2009, 2010, 2011,
  2012 and 2013 (the “Performance Period”); provided, that the performance
  criteria for the applicable fiscal year is achieved, as determined in the
  sole and complete discretion of the Committee. Specific performance criteria
  for each fiscal year shall be established by the Committee prior to the end
  of the first quarter of fiscal year 2010, 2011, 2012, and 2013, as
  applicable. Specific performance criteria for fiscal year 2009 shall be
  established by the Committee as soon as practicable.  

  

  Any Shares that do not become Released Shares after fiscal year 2009
  and any other Shares that do not become Released Shares at such time as such
  Shares are eligible to become Released Shares as a result of not achieving
  specified performance criteria shall be carried forward and become eligible
  for vesting in the subsequent year of the Performance Period subject to achievement
  of performance criteria adopted by the Committee with respect to such Shares
  that have been carried forward.

  

  Notwithstanding the foregoing, subject to the
  Restricted Stock Agreement, in no event, shall any Shares vest and become
  Released Shares following Holder’s Termination of Employment.

  

  Notwithstanding the foregoing, all Shares shall
  become Released Shares and shall vest immediately upon a Change in Control as
  defined in Section 1.6 of the Plan.

  

 

By his or her signature
below, Holder agrees to be bound by the terms and conditions of the Plan, the
Restricted Stock Agreement and this Grant Notice.  Holder has reviewed the Restricted Stock 

 

A-1

 

Agreement, the Plan and this Grant Notice in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this
Grant Notice and fully understands all provisions of this Grant Notice, the
Restricted Stock Agreement and the Plan. 
Holder hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Board upon any questions arising under or
relating to the Plan, this Grant Notice or the Restricted Stock Agreement.

 

	
  MAUI LAND & PINEAPPLE COMPANY, INC.:

  	
   

  	
  HOLDER:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /S/
  WARREN H. HARUKI

  	
   

  	
  By:

  	
  /S/
  JOHN P. DURKIN

  
	
  Print
  Name:

  	
  Warren
  H. Haruki

  	
   

  	
  Print
  Name:

  	
  John
  P. Durkin

  
	
  Title:

  	
  Executive
  Chairman

  	
   

  	
   

  	
   

  
	
  Address:

  	
  P.O. Box
  187

  	
   

  	
  Address:

  	
   

  
	
   

  	
  Kahului,
  Maui, Hawaii 96733

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  May 4,
  2009

  	
   

  	
   

  	
   

  

 

Attachments:            The
following Exhibits listed below have been previously distributed to the Holder.
Additional copies are available upon request from the Holder.

Restricted
Stock Award Agreement (Exhibit A)

Form of
Internal Revenue Code Section 83(b) Election and Instructions (Exhibit B)

·  Election under Internal Revenue Code Section 83(b) (Attachment 1 to Exhibit B)

·  Sample Cover Letter to Internal Revenue
Service (Attachment 2 to Exhibit B)

Maui
Land & Pineapple Company, Inc. 2006 Equity and Incentive Award
Plan (Exhibit C)

 

A-2

 

EXHIBIT A

 

TO RESTRICTED STOCK AWARD
GRANT NOTICE

 

RESTRICTED STOCK AWARD
AGREEMENT

 

Pursuant to the Restricted
Stock Award Grant Notice (“Grant Notice”)  to which this Restricted Stock
Award Agreement (this “Agreement”) is  attached, Maui Land &
Pineapple Company, Inc., a Hawaii corporation (the “Company”),  has granted to Holder the number of
shares of the Company’s common stock, no par value (“Stock”),
set forth in the Grant Notice (the “Shares”),
upon the terms and conditions set forth in the Company’s 2006 Equity and
Incentive Award Plan (the “Plan”), the
Grant Notice and this Agreement.

ARTICLE I

GENERAL

 

1.1                                 Defined Terms.  Capitalized terms not specifically defined
herein shall have the meanings specified in the Grant Notice or, if not defined
therein, the Plan.

 

1.2                                 Incorporation
of Terms of Plan.  The Shares
are subject to the terms and conditions of the Plan which are incorporated
herein by reference.

ARTICLE II

GRANT OF RESTRICTED STOCK

 

2.1                                 Grant of
Restricted Stock.  In
consideration of Holder’s past and/or continued service to the Company or its
Subsidiaries and for other good and valuable consideration, effective as of the
Grant Date set forth in the Grant Notice (the “Grant Date”),  the Company
hereby agrees to issue to Holder the Shares,  upon the terms
and conditions set forth in the Plan, the Grant Notice and this Agreement.

 

2.2                                 Issuance of
Shares.  The issuance of the Shares
under this Agreement shall occur at the principal office of the Company
simultaneously with the execution of the Grant Notice by the parties or on such
other date as the Company and Holder shall agree (the “Issuance Date”).  Subject to the provisions of Article IV,
the Company shall issue the Shares (which shall be issued in Holder’s name) on
the Issuance Date.

 

2.3                                 Conditions to
Issuance of Stock Certificates.  The Shares, or any portion thereof, may be
either previously authorized but unissued shares or issued shares which have
then been reacquired by the Company. 
Such Shares shall be fully paid and nonassessable.  The Company shall not be required to issue or
deliver any Shares prior to fulfillment of all of the following conditions:

 

(a)                            The admission
of such Shares to listing on all stock exchanges on which the Stock is then
listed;

 

(b)                           The completion
of any registration or other qualification of such Shares under any state or
federal law or under rulings or regulations of the Securities and Exchange
Commission or of any other governmental regulatory body, which the Board shall,
in its absolute discretion, deem necessary or advisable;

 

A-3

 

(c)                            The obtaining
of any approval or other clearance from any state or federal governmental
agency which the Board shall, in its absolute discretion, determine to be
necessary or advisable;

 

(d)                           The lapse of
such reasonable period of time following the Issuance Date as the Board may
from time to time establish for reasons of administrative convenience; and

 

(e)                            The receipt by
the Company of full payment for all amounts (if any) which, under federal,
state or local tax law, the Company (or other employer corporation) is required
to withhold upon issuance of such Shares.

 

2.4                                 Rights as
Stockholder.  Except as
otherwise provided herein, upon delivery of the Shares to the escrow agent
pursuant to Article IV, Holder shall have all the rights of a stockholder
with respect to said Shares, subject to the restrictions herein, including the
right to vote the Shares and to receive all dividends or other distributions
paid or made with respect to the Shares; provided, however, that
any and all extraordinary cash dividends paid on such Shares and any and all
shares of Stock, capital stock or other securities or property received by or
distributed to Holder with respect to the Shares as a result of any stock
dividend, stock split, reverse stock split, recapitalization, combination,
reclassification, or similar change in the capital structure of the Company
shall also be subject to the Forfeiture Restriction (as defined in Section 3.1)
and the restrictions on transfer in Section 3.4 until such restrictions on
the underlying Shares lapse or are removed pursuant to this Agreement (or, if
such Shares are no longer outstanding, until such time as such Shares would
have been released from the Forfeiture Restriction pursuant to this
Agreement).  In addition, in the event of
any merger, consolidation, share exchange or reorganization affecting the
Shares, including, without limitation, a Change in Control, then any new,
substituted or additional securities or other property (including money paid
other than as a regular cash dividend) that is by reason of any such
transaction received with respect to, in exchange for or in substitution of the
Shares shall also be subject to the Forfeiture Restriction (as defined in Section 3.1)
and the restrictions on transfer in Section 3.4 until such restrictions on
the underlying Shares lapse or are removed pursuant to this Agreement (or, if
such Shares are no longer outstanding, until such time as such Shares would
have been released from the Forfeiture Restriction pursuant to this
Agreement).  Any such assets or other
securities received by or distributed to Holder with respect to, in exchange
for or in substitution of any Unreleased Shares (as defined in Section 3.3)
shall be immediately delivered to the Company to be held in escrow pursuant to Section 4.1.

 

ARTICLE
III

RESTRICTIONS ON SHARES

 

3.1                                 Forfeiture
Restriction.  Subject to
the provisions of Section 3.2, if Holder has a Termination of Employment
for any or no reason, all of the Unreleased Shares (as defined in Section 3.3)
shall be forfeited immediately and automatically transferred to the Company
without further action by the Company (the “Forfeiture Restriction”); provided,
however, that for this purpose, (i) any termination of Holder’s employment
by the Company or any of its subsidiaries that occurs on or after the
Performance Period, but not later than the date the Announcement Date, shall be
deemed to have occurred on the first business day after the Announcement Date,
and (ii) any other termination of Holder’s employment by reason of death
or permanent and total disability that occurs on or after July 1 of any
year during the Performance Period, but no later than the Announcement Date for
that year shall be deemed to have occurred on the first business day after such
Announcement Date.  Further, for this
purpose, Holder’s employment shall not be treated as terminated in the case of
a transfer of employment within the Company and its subsidiaries or in the case
of sick leave and other approved leaves of absence.  Upon the occurrence of such a forfeiture, the
Company shall become the legal and beneficial owner of the Shares 

 

A-4

 

being forfeited and all
rights and interests therein or relating thereto and the Company shall have the
right to retain and transfer to its own name the number of Shares being
forfeited by Holder.  In the event any of
the Unreleased Shares are forfeited under this Section 3.1, any cash, cash
equivalents, assets or securities received by or distributed to Holder with
respect to, in exchange for or in substitution of such Shares and held by the
escrow agent pursuant to Section 4.1 and the Joint Escrow Instructions
shall be promptly transferred by the escrow agent to the Company.

 

3.2                                 Release of
Shares from Forfeiture Restriction.  The Shares shall be released from the
Forfeiture Restriction as indicated in the Grant Notice effective as of the
date Holder receives written the written Notice of Release set forth in Section 3.5
below.  Any of the Shares released from
the Forfeiture Restriction shall thereupon be released from the restrictions on
transfer under Section 3.4.  In the
event any of the Shares are released from the Forfeiture Restriction, any
dividends or other distributions paid on such Shares and held by the escrow
agent pursuant to Section 4.1 and the Joint Escrow Instructions shall be
promptly paid by the escrow agent to Holder.

 

3.3                                 Unreleased
Shares.  Any of the Shares which, from
time to time, have not yet been released from the Forfeiture Restriction are
referred to herein as “Unreleased Shares.”

 

3.4                                 Restrictions on
Transfer.  Unless
otherwise permitted by the Board pursuant to the Plan, no Unreleased Shares or
any dividends or other distributions thereon or any interest or right therein
or part thereof, shall be liable for the debts, contracts or engagements of
Holder or his or her successors in interest or shall be subject to sale or
other disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such sale or other disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted sale or other disposition thereof shall be null and void and
of no effect.

 

3.5                                 Notice of
Release.  The Committee shall provide
written notice to Holder of whether, and the extent to which, any of the Shares
became vested and released in accordance with Section 3.2 above for each
calendar year during the Performance Period. 
Such notice shall be provided as soon as administratively practicable
after audited financial statements are available for such calendar year and the
Committee has certified in writing the extent to which the applicable
performance goals set forth in the Grant Notice were achieved.

 

ARTICLE IV

ESCROW OF SHARES

 

4.1                                 Escrow of
Shares.  To insure the availability for
delivery of Holder’s Unreleased Shares in the event of forfeiture of such
Shares by Holder pursuant to Section 3.1, Holder hereby appoints the
Secretary of the Company, or any other person designated by the Board as escrow
agent, as his or her attorney-in-fact to assign and transfer unto the Company,
such Unreleased Shares, if any, forfeited by Holder pursuant to Section 3.1
and any dividends or other distributions thereon, and shall, upon execution of
this Agreement, deliver and deposit with the Secretary of the Company, or such
other person designated by the Board, any share certificates representing the
Unreleased Shares, together with the stock assignment duly endorsed in blank,
attached as Exhibit B to the Grant Notice.  The Unreleased Shares and stock assignment
shall be held by the Secretary of the Company, or such other person designated
by the Board, in escrow, pursuant to the Joint Escrow Instructions of the
Company and Holder attached as Exhibit C to the Grant Notice, until
the Unreleased Shares are forfeited by Holder as provided in Section 3.1,
until such Unreleased Shares are released from the Forfeiture Restriction, or
until such time as this Agreement no longer is in effect.  Upon release of the Unreleased Shares from
the Forfeiture 

 

A-5

 

Restriction, the escrow
agent shall deliver to Holder the certificate or certificates representing such
Shares in the escrow agent’s possession belonging to Holder in accordance with
the terms of the Joint Escrow Instructions attached as Exhibit C to
the Grant Notice, and the escrow agent shall be discharged of all further
obligations hereunder; provided, however, that
the escrow agent shall nevertheless retain such certificate or certificates as
escrow agent if so required pursuant to other restrictions imposed pursuant to
this Agreement.  If the Shares are held
in book entry form, then such entry will reflect that the Shares are subject to
the restrictions of this Agreement.  If
any dividends or other distributions are paid on the Unreleased Shares held by
the escrow agent pursuant to this Section 4.1 and the Joint Escrow
Instructions, such dividends or other distributions shall also be subject to
the restrictions set forth in this Agreement and held in escrow pending release
of the Unreleased Shares with respect to which such dividends or other
distributions were paid from the Forfeiture Restriction.

 

4.2                                 Notice of
Forfeited Shares; Transfer of Forfeited Shares.  The Committee shall provide written notice to
Holder of whether any of the Shares were permanently forfeited for each
calendar year during the Performance Period. 
Such notice shall be provided as soon as administratively practicable
after audited financial statements are available for such calendar year.  Holder hereby authorizes and directs the
Secretary of the Company, or such other person designated by the Board, to
transfer the Unreleased Shares which have been forfeited by Holder immediately
to the Company.

 

4.3                                 No Liability
for Actions in Connection with Escrow.  The Company, or its designee, shall not be
liable for any act it may do or omit to do with respect to holding the Shares
in escrow while acting in good faith and in the exercise of its judgment.

 

ARTICLE V

OTHER PROVISIONS

 

5.1                                 Adjustment for
Stock Split.  In the event
of any stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification, or similar change in the capital structure of
the Company, the Board shall make appropriate and equitable adjustments in the
Unreleased Shares subject to the Forfeiture Restriction and the number of
Shares, consistent with any adjustment under Section 11.3 of the
Plan.  The provisions of this Agreement
shall apply, to the full extent set forth herein with respect to the Shares, to
any and all shares of capital stock or other securities, property or cash which
may be issued in respect of, in exchange for, or in substitution of the Shares,
and shall be appropriately adjusted for any stock dividends, splits, reverse
splits, combinations, recapitalizations and the like occurring after the date
hereof.

 

5.2                                 Taxes.  Holder has reviewed with Holder’s own tax
advisors the federal, state, local and foreign tax consequences of this
investment and the transactions contemplated by the Grant Notice and this Agreement.  Holder is relying solely on such advisors and
not on any statements or representations of the Company or any of its
agents.  Holder understands that Holder
(and not the Company) shall be responsible for Holder’s own tax liability that
may arise as a result of this investment or the transactions contemplated by
this Agreement.  Holder understands that
Holder will recognize ordinary income for federal income tax purposes under Section 83
of the Code as the restrictions applicable to the Unreleased Shares lapse.  In this context, “restriction” includes the
Forfeiture Restriction.  Holder
understands that Holder may elect to be taxed for federal income tax purposes
at the time the Shares are issued rather than as and when the Forfeiture
Restriction lapses by filing an election under Section 83(b) of the
Code with the Internal Revenue Service no later than thirty days following the
date of purchase.  A form of election
under Section 83(b) of the Code is attached to the Grant Notice as Exhibit D.

 

A-6

 

HOLDER ACKNOWLEDGES THAT IT
IS HOLDER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY FILE THE
ELECTION UNDER SECTION 83(b), EVEN IF HOLDER REQUESTS THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON HOLDER’S BEHALF.

 

As additional consideration
for Holder’s past and/or continued service to the Company or its Subsidiaries,
in the event that the Company achieves the Maximum NOI for the Company’s
pineapple operations in fiscal year 2006, as set forth and defined in the
Restricted Share Agreement dated June 30, 2004 (the “2004 Agreement”)
between the Company and Holder, the Company shall pay to Holder a cash bonus
equal to Holder’s federal and state income and payroll taxes directly resulting
from the vesting of shares under the 2004 Agreement for the fiscal year 2006,
grossed up for taxes resulting from such cash bonus.

 

5.3                                 Limitations
Applicable to Section 16 Persons.  Notwithstanding any other provision of the
Plan or this Agreement, the Plan, the Shares and this Agreement shall be
subject to any additional limitations set forth in any applicable exemptive rule under
Section 16 of the Exchange Act (including any amendment to Rule 16b-3
of the Exchange Act) that are requirements for the application of such
exemptive rule.  To the extent permitted
by applicable law, this Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

 

5.4                                 Administration.  The Board shall have the power to interpret
the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such
rules.  All actions taken and all
interpretations and determinations made by the Board in good faith shall be binding, conclusive and final upon Holder, the
Company and all other interested persons. 
No member of the Board
shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, this Agreement or the Shares.

 

5.5                                 Restrictive
Legends and Stop-Transfer Orders.

 

(a)                            Any share
certificate(s) evidencing the Shares issued hereunder shall be endorsed
with the following legend and any other legend(s) that may be required by
any applicable federal or state securities laws:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE IN FAVOR OF
THE COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A
RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A
COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

(b)                           Holder agrees
that, in order to ensure compliance with the restrictions referred to herein,
the Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and that, if the Company transfers its own securities, it may
make appropriate notations to the same effect in its own records.

 

(c)                            The Company
shall not be required: (i) to transfer on its books any Shares that have
been sold or otherwise transferred in violation of any of the provisions of
this Agreement, or (ii) to treat as owner of such Shares or to accord the
right to vote or pay dividends to any purchaser or other transferee to whom
such Shares shall have been so transferred.

 

A-7

 

5.6                                 Tax Withholding.

 

(a)                            The Company
shall be entitled to require payment of any sums required by federal, state or
local tax law to be withheld with respect to the transfer of the Shares or the
lapse of the Forfeiture Restriction with respect to the Shares, or any other
taxable event related thereto.  The
Company may permit Holder to make such payment in one or more of the forms
specified below:

 

(i)                                     by cash or
check made payable to the Company;

 

(ii)                                  by the
deduction of such amount from other compensation payable to Holder;

 

(iii)                               by tendering
Shares which are not subject to the Forfeiture Restriction and which have a
then current Fair Market Value not greater than the amount necessary to satisfy
the Company’s withholding obligation based on the minimum statutory withholding
rates for federal, state and local income tax and payroll tax purposes; or

 

(iv)                              in any
combination of the foregoing.

 

(b)                                 In the event
Holder fails to provide timely payment of all sums required by the Company
pursuant to Section 5.6(a), the Company shall have the right and option,
but not obligation, to treat such failure as an election by Holder to provide
all or any portion of such required payment by means of tendering Shares in
accordance with Section 5.6(a)(iii).

 

5.7                                 Notices.  Any notice to be given under the terms of
this Agreement to the Company shall be addressed to the Company in care of the
Secretary of the Company, and any notice to be given to Holder shall be
addressed to Holder at the address given beneath Holder’s signature on the
Grant Notice.  By a notice given pursuant
to this Section 5.7, either party may hereafter designate a different
address for notices to be given to that party. 
Any notice shall be deemed duly given when sent via email or when sent
by certified mail (return receipt requested) and deposited (with postage
prepaid) in a post office or branch post office regularly maintained by the
United States Postal Service.

 

5.8                                 Titles.  Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of this
Agreement.

 

5.9                                 Governing Law;
Severability.  This
Agreement shall be administered, interpreted and enforced under the laws of the
State of Hawaii without regard to conflicts of laws thereof.  Should any provision of this Agreement be
determined by a court of law to be illegal or unenforceable, the other
provisions shall nevertheless remain effective and shall remain enforceable.

 

5.10                           Conformity to
Securities Laws.  Holder
acknowledges that the Plan is intended to conform to the extent necessary with
all provisions of the Securities Act and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange
Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the
contrary, the Plan shall be administered, and the Shares are to be issued, only
in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law,
the Plan and this Agreement shall be deemed amended to the extent necessary to
conform to such laws, rules and regulations.

 

5.11                           Amendments.  This Agreement may not be modified, amended
or terminated except by an instrument in writing, signed by Holder and by a
duly authorized representative of the Company.

 

A-8

 

5.12                           Successors and
Assigns.  The Company may assign any of
its rights under this Agreement to single or multiple assignees, and this
Agreement shall inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on
transfer herein set forth, this Agreement shall be binding upon Holder and his
or her heirs, executors, administrators, successors and assigns.

 

A-9

 

EXHIBIT B

 

TO RESTRICTED
STOCK AWARD GRANT NOTICE

 

FORM OF 83(B) ELECTION
AND INSTRUCTIONS

 

These
instructions are provided to assist you if you choose to make an election under
Section 83(b) of the Internal Revenue Code, as amended, with respect
to the shares of common stock, no par value, of Maui Land & Pineapple
Company, Inc. transferred to you.  Please consult with your personal tax advisor
as to whether an election of this nature will be in your best interests in
light of your personal tax situation.

 

The executed original of the Section 83(b) election must be
filed with the Internal Revenue Service  not later
than 30 days after the date the shares were transferred to you.  PLEASE NOTE:  There is no remedy for failure to file on
time.  The steps outlined below should be
followed to ensure the election is mailed and filed correctly and in a timely
manner.  ALSO, PLEASE NOTE:  If you make the Section 83(b) election,
the election is irrevocable.

 

1.                                       Complete Section 83(b) election
form (attached as Attachment 1) and make four (4) copies of the
signed election form.  (Your spouse, if
any, should sign the Section 83(b) election form as well.)

 

2.                                       Prepare the
cover letter to the Internal Revenue Service (sample letter attached as Attachment
2).

 

3.                                       Send the cover
letter with the originally executed Section 83(b) election form and
one (1) copy via certified mail, return receipt requested to the Internal
Revenue Service at the address of the Internal Revenue Service where you file
your personal tax returns.  We suggest
that you have the package date-stamped at the post office.  The post office will provide you with a white
certified receipt that includes a dated postmark.  Enclose a self-addressed, stamped envelope so
that the Internal Revenue Service may return a date-stamped copy to you.  However, your postmarked receipt is your
proof of having timely filed the Section 83(b) election if you do not
receive confirmation from the Internal Revenue Service.

 

4.                                       One (1) copy
must be sent to Maui Land & Pineapple Company, Inc. for its
records and one (1) copy must be attached to your federal income tax
return for the applicable calendar year.

 

5.                                       Retain the
Internal Revenue Service file stamped copy (when returned) for your records.

 

Please consult your personal tax advisor for the address of the office
of the Internal Revenue Service to which you should mail your election form.

 

B-1

 

ATTACHMENT 1  TO EXHIBIT B

 

TO RESTRICTED
STOCK AWARD GRANT NOTICE

 

ELECTION UNDER INTERNAL REVENUE CODE SECTION 83(B)

 

The undersigned taxpayer
hereby elects, pursuant to Section 83(b) of the Internal Revenue Code
of 1986, as amended, to include in taxpayer’s gross income for the current
taxable year the amount of any compensation taxable to taxpayer in connection
with taxpayer’s receipt of shares (the “Shares”) of common stock, no par
value, of Maui Land & Pineapple Company, Inc., a Hawaii
corporation (the “Company”).

 

1.                                       The name,
address and taxpayer identification number of the undersigned taxpayer are:

 

 

 

SSN:

 

The
name, address and taxpayer identification number of the taxpayer’s spouse are
(complete if applicable):

 

 

 

SSN:

 

2.                                       Description of
the property with respect to which the election is being made:

 

     
shares of common stock, no par value, of the Company.

 

3.                                       The date on
which the property was transferred was                  ,
20        .

 

4.                                       The taxable
year to which this election relates is calendar year 20       .

 

5.                                       Nature of
restrictions to which the property is subject:

 

The
Shares may not be transferred and are subject to forfeiture if taxpayer’s
service as a member of the Board of Directors of the Company terminates for any
reason.  The forfeiture restriction will
lapse with respect to 250 Shares on the last business day of each calendar
quarter following the date of grant.

 

6.                                       The fair market
value at the time of transfer (determined without regard to any lapse
restrictions, as defined in Treasury Regulation Section 1.83-3(a)) of the
Shares was       per Share.

 

7.                                       No amount was
paid by the taxpayer for the Shares.

 

8.                                       A copy of this
statement has been furnished to the Company.

 

	
  Dated:       ,
  20    Taxpayer Signature

  	
   

  	
   

  

 

The
undersigned spouse of Taxpayer joins in this election.  (Complete if applicable).

 

	
  Dated:       ,
  20    Spouse’s Signature

  	
   

  	
   

  

 

B-2

 

ATTACHMENT 2 TO EXHIBIT
B

 

TO RESTRICTED STOCK
AWARD GRANT NOTICE

 

SAMPLE COVER LETTER TO INTERNAL REVENUE SERVICE

 

[Date]

 

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED

 

Internal
Revenue Service

[Address
where taxpayer files returns]

 

	
   

  	
  Re:

  	
  Election under
  Section 83(b) of the Internal Revenue Code of 1986

  	
   

  
	
   

  	
   

  	
  Taxpayer:

  	
   

  	
   

  
	
   

  	
   

  	
  Taxpayer’s Social Security
  Number:

  	
   

  	
   

  
	
   

  	
   

  	
  Taxpayer’s Spouse:

  	
   

  	
   

  
	
   

  	
   

  	
  Taxpayer’s Spouse’s Social
  Security Number:

  	
   

  	
   

  
								

 

 

Ladies
and Gentlemen:

 

Enclosed please find an
original and one copy of an Election under Section 83(b) of the
Internal Revenue Code of 1986, as amended, being made by the taxpayer
referenced above.  Please acknowledge
receipt of the enclosed materials by stamping the enclosed copy of the Election
and returning it to me in the self-addressed stamped envelope provided
herewith.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

Enclosures

cc:                                 Maui Land & Pineapple Company, Inc.

 

B-3

 

EXHIBIT C

 

TO RESTRICTED STOCK AWARD
GRANT NOTICE

 

MAUI LAND &
PINEAPPLE COMPANY, INC. 

2006 EQUITY AND INCENTIVE AWARD PLAN

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