Document:

Exhibit 10.9

 

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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price per Share:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total
  Exercise Price:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total
  Number of Shares Subject to the Option:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
   

  	
  o  Incentive
  Stock Option 

  	
  o  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                                        ,
  2007,

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  20% of the total number of shares of Stock subject to the Option on                                        ,
  2008,

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  20% of the total number of shares of Stock subject to the Option on                                        ,
  2009,

  
	
   

  	
   

  	
   

  	
  (iv)

  	
  20% of the total number of shares of Stock subject to the Option on                                        ,
  2010 and

  
	
   

  	
   

  	
   

  	
  (v)

  	
  20% of the total number of shares of Stock subject to the Option on                                        ,
  2011.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  
							

 

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:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
   

  	
  Print
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  P.O.
  Box 187

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
  Kahului,
  Maui, Hawaii 96733

  	
   

  	
   

  	
   

  	
   

  

 

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-7Exhibit 10.10

 

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 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”).

 

	
  Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Number of

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Shares of Restricted Stock:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  Subject
  to the terms and conditions of the Plan, this Grant Notice and the Restricted
  Stock Agreement, the Company’s Forfeiture Restriction (as defined in the
  Restricted Stock Agreement) shall lapse as to 250 Shares on each of June xx,
  200x, September xx, 200x, December xx, 200x, March xx, 200x, June xx, 200x,
  September 28, 2007, December 31, 2007, March 31, 2008, June 30, 2008,
  September xx, 200x, December xx, 200x, and March xx, 200x.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  no event, however, shall the Forfeiture Restriction (as defined in the
  Restricted Stock Agreement) lapse as to any additional Shares following
  Holder’s Termination of Employment, Termination of Consultancy, or
  Termination of Directorship, as applicable.

  
					

 

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
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 Administrator upon
any questions arising under or relating to the Plan, this Grant Notice or the
Restricted Stock Agreement.  If Holder is
married, his or her spouse has signed the Consent of Spouse attached to this
Grant Notice as Exhibit B.

 

	
  MAUI LAND & PINEAPPLE COMPANY, INC.:

  	
   

  	
  HOLDER:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
   

  	
  Print
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  P.O.
  Box 187

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
  Kahului,
  Maui, Hawaii 96733

  	
   

  	
   

  	
   

  	
   

  

 

 

Attachments:        Restricted Stock Award Agreement (Exhibit 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
employment with or 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 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 lapse of such reasonable period of time following the
Issuance Date as the Administrator may from time to time establish for reasons
of administrative convenience; and

 

(e)         The receipt by the Company of full payment for all amounts
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, Termination of Consultancy, or
Termination of Directorship, as applicable, for any or no reason, all of the Unreleased
Shares (as defined in Section 3.3) shall thereupon be forfeited immediately and
without any further action by the Company (the “Forfeiture Restriction”).  Upon the occurrence of such a forfeiture, the
Company shall become the legal and beneficial owner of the Shares 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.

 

A-2

 

3.2           Release of Shares from Forfeiture
Restriction.  The Shares shall be
released from the Forfeiture Restriction as indicated in the Grant Notice.  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 Administrator
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.

 

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 Administrator 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 Administrator, any share certificates representing the
Unreleased Shares, together with the stock assignment duly endorsed in blank,
attached as Exhibit C 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 Administrator, in escrow, pursuant to the Joint Escrow Instructions of
the Company and Holder attached as Exhibit D 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 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 D 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           Transfer of Forfeited Shares.  Holder hereby authorizes and directs the
Secretary of the Company, or such other person designated by the Administrator,
to transfer the Unreleased Shares which have been forfeited by Holder to the
Company.

 

A-3

 

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 Administrator 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 E.

 

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.

 

5.3           Limitations Applicable to Section
16 Persons.  Notwithstanding any
other provision of the Plan or this Agreement, if Holder is subject to Section
16 of the Exchange Act, 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 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 Holder, 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,

 

A-4

 

this Agreement or the
Shares.  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.

 

5.5           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.

 

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.

 

A-5

 

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.

 

5.12         No Employment Rights.  If Holder is an employee, nothing in the Plan
or this Agreement shall confer upon Holder any right to continue in the employ
of the Company or any Subsidiary or shall interfere with or restrict in any way
the rights of the Company and its Subsidiaries, which are expressly reserved,
to discharge Holder 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 and Holder.

 

5.13         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-6

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