Document:

Exhibit 10.5

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (“Agreement”) is entered into as of May 1, 2006 (“Effective
Date”) between Maui Land & Pineapple Company, Inc. (“Company”) and Robert
I. Webber (“Executive”).

 

RECITALS

 

Company wishes
to employ Executive and Executive wishes to accept such employment under the
terms and conditions set forth in this Agreement.

 

IT
IS AGREED as follows:

 

1.                                       Employment. Company hereby employs Executive
as its Chief Financial Officer and Senior Vice President of Business
Development.

 

2.                                       Term. The term of employment under this
Agreement shall commence on the Effective Date and shall continue until April
30, 2008, unless otherwise terminated earlier under Section 10. If neither
party provides written notice of termination to the other within thirty (30)
days of this Agreement’s original expiration date, or any extensions thereof,
the term of this Agreement may be extended for successive additional year
periods.

 

3.                                       Duties.

 

(a)                                  Executive
shall report directly to the Chief Executive of the Company. In matters
relating to financial controls and policy compliance, Executive shall report to
the Audit Committee of the Board of Directors.

 

(b)                                 Executive
shall:  (1) have primary responsibility
for the Company’s financial planning, reporting, compliance, risk management
and controls; (2) overall responsibility for corporate and business
development, including working closely with business segment managers and their
colleagues to improve business performance and execute on new opportunities;
and (3) work with the Company’s directors and fellow officers to initiate and
monitor policies and programs designed to improve the overall competitive
fitness of the Company, as well as the quality of life for its employees and
shareholders. However, it is understood by the parties that the specific duties
and responsibilities of the Executive are subject to modification,
supplementation, change or deletion by the Chief Executive Officer of the
Company and/or the Audit Committee of the Company’s Board of Directors.

 

(c)                                  Executive
shall devote his full-time efforts to the proper and faithful performance of
all duties customarily discharged by a Chief Financial Officer and Senior Vice
President of Business Development, consistent with Company policies and
directives of the Company’s Chief Executive Officer and the Audit Committee of
the Board of Directors. Executive shall provide services to any subsidiary or
affiliate of the Company without additional compensation and benefits beyond
those set forth in this Agreement. If requested, Executive shall serve on the

 

 

Board(s) of
Directors of Company and any affiliate or subsidiary. Executive agrees to use
his best efforts and comply with all fiduciary and professional standards in
the performance of his duties.

 

(d)                                 During
the term of this Agreement, the Executive shall provide services exclusively on
behalf of the Company and shall render services to no other person,
organization or company except as may be approved in writing by the Chief
Executive of the Company.

 

4.                                       Compensation.

 

(a)                                  Annual Base Salary. During his
first year of employment with the Company, Executive shall be paid a base
salary of Three Hundred Thousand Dollars ($300,000.00). During his second year
of employment with the Company, Executive shall be paid a base salary of Three
Hundred Fifty Thousand Dollars ($350,000.00). Thereafter, Executive’s base
salary shall be negotiated on an annual basis with the Chief Executive of the
Company, and is subject to approval by the Compensation Committee of the
Company’s Board of Directors (Compensation Committee).

 

(b)                                 Annual Incentive Pay. Executive shall receive a $50,000 sign on bonus. During his
first year of employment with the Company, Executive shall receive an annual incentive
payment of Fifty Thousand Dollars ($50,000.00). Beginning the second year of
employment and every year thereafter, the bonus shall be based upon the
achievement of criteria and in amounts as set forth in a bonus plan established
by the Compensation Committee. It is understood and agreed by the parties that,
barring unforeseen business issues, Executive’s annual incentive payment shall
be a minimum of Fifty Thousand Dollars ($50,000.00).

 

(c)                                  Payments and Withholdings. Executive’s compensation
hereunder shall be paid in accordance with the Company’s regular pay practices.
All compensation shall be less applicable withholdings and deductions.

 

5.                                       Stock Options.

 

(a)                                  Executive
shall be eligible to participate in the Company’s 2006 Equity and Incentive
Compensation Plan, with an initial stock option grant of 25,000 stock options
to vest at a rate of 20% per year over a five year period. Executive’s
participation shall be governed by the terms of the Plan and the related Stock
Option Agreement. All options shall vest upon a Change of Control.

 

(b)                                 In
addition to participation in the Plan set forth in Section 5(a) above,
Executive shall be eligible to receive 25,000 restricted shares, vesting over a
five year period, and based upon performance metrics determined annually by the
Compensation Committee of the Board. The terms and conditions of this program
are set forth in the Restricted Stock Agreement. Provided that

 

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Executive’s
employment is not terminated pursuant to a Change of Control transaction, all
restricted shares shall vest upon a Change of Control.

 

6.                                       Benefits.

 

(a)                                  Executive
may participate in the following benefit plans and programs currently provided
by the Company:  health care benefits
(including medical, dental and vision coverage); group life insurance and
AD&D coverage; travel accident insurance; temporary and long-term
disability insurance; retirement programs (including a defined benefit pension
plan and an “excess” supplemental plan with initial vesting period of five
years); a 401(k) plan and/or an executive deferred compensation plan; and such
other benefit plans generally available from time to time to other senior
executives. Executive’s participation in and benefits under any benefit plan or
program shall be on the terms and subject to the conditions specified in such
plan or program.

 

(b)                                 In
addition to the foregoing benefits, Executive shall also receive the following
individual benefits:

 

(i)                                     Four
(4) weeks of paid vacation per year, effective upon hire.

 

(ii)                                  Supplemental
cash payments up to a maximum of Thirty-Six Thousand Dollars ($36,000) per year
to defray living and other expenses, including, without limitation, personal
and family travel to the mainland, and private schooling costs. These supplemental
cash payments will be subject to taxation.

 

7.                                       Reimbursement of Expenses. The Company will
reimburse Executive for the ordinary and necessary expenses incurred by him in
the performance of his duties under this Agreement in accordance with the Company’s
policies in effect from time to time, including, but not limited to membership
in professional organizations and participation in executive education
programs, as approved by the Chief Executive Officer.

 

8.                                       Termination of Employment.

 

(a)                                  By the Company: 
Notwithstanding any other provision of this Agreement, Executive’s
employment under this Agreement may be terminated by the Company:

 

(i)                                     Upon
death of Employee;

 

(ii)                                  Whenever
the Executive is not qualified — legally, physically, mentally or otherwise —
to perform the duties assigned to him, with or without reasonable
accommodation;

 

(iii)                               Without
cause, upon thirty (30) days notice to the other party; or

 

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(iv)                              For
good cause, at any time, without prior notice. “Cause” shall consist of any of
the following:

 

(1)                                  the
Executive is convicted of, or has pleaded guilty or entered a plea of nolo
contendere to, a felony (under the laws of the United States or any state
thereof);

 

(2)                                  fraudulent
conduct by the Executive in connection with the business or other affairs of
the Company or any related company or the theft, embezzlement, or other
criminal misappropriation of funds by the Executive from the Company or any
related company; or

 

(3)                                  the
Executive’s gross negligence to comply with reasonable directives of the Chief
Executive Officer and Board of Directors which are communicated to him in
writing, after reasonable written notice has been provided of such
non-performance by the Chief Executive Officer and Board of Directors, and, if
such failure is curable, Executive has not cured such failure within a
reasonable period following such notice.

 

(b)                                 By Executive. Executive may terminate his employment under
this Agreement under the following circumstances:

 

(i)                                     Upon
his retirement;

 

(ii)                                  Without
cause, upon thirty (30) days notice to the other party; or

 

(iii)                               Upon
a change in control of the Company. “Change in Control” means:

 

(1)                                  a
sale or other disposition of all or substantially all of the assets of the
Company;

 

(2)                                  a
merger or consolidation in which the Company is not the surviving entity and in
which the shareholders of the Company immediately prior to such consolidation
or merger own less than fifty percent (50%) of the surviving entity’s voting
power immediately after the transaction;

 

(3)                                  a
reverse merger or going private transaction in which the Company is the
surviving entity but the shares of the Company’s Common Stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash, or otherwise; or

 

(4)                                  any
other capital reorganization in which more than fifty percent (50%) of the
shares of the Company entitled to vote are exchanged.

 

4

 

(c)                                  Notice of Termination. Any termination of this Agreement by
either party shall be communicated by written notice to the other party. Said
notice shall state in reasonable detail the facts and circumstances deemed to
provide the basis for such termination.

 

(d)                                 Payment Upon Termination.

 

(i)                                     Upon
termination of Executive’s employment pursuant to Sections 8.a.(i), (ii), (iii)
or 8(b)(iii) above, Executive shall be entitled to receive one (1) year of his base
salary and any benefits vested as of the date of such termination. All stock
options (but excluding unvested restricted shares), shall be considered vested.

 

(ii)                                  Upon
termination of Executive’s employment pursuant to Sections 8(a)(iv) or
8(b)(ii), Executive shall only be entitled to receive any base salary earned or
benefits vested as of the effective date of his termination, including any
vested options or restricted shares.

 

(iii)                               In
the event Executive’s employment is terminated pursuant to Section 8(b)(i),
Executive shall receive any base salary and incentive pay earned as of his
retirement date, as well as any benefits or stock options vested as of his
retirement date.

 

9.                                       Covenant Not to Compete; Confidentiality

 

(a)                                  Confidential Information. During Executive’s
employment with the Company and at all times after the termination of such
employment, regardless of the reason for such termination, Executive shall hold
all Confidential Information relating to the Company in strict confidence and
shall not use, disclose or otherwise communicate the Confidential Information
to anyone other than the Company without the prior written consent of the Company.
“Confidential Information” includes, without limitation, business, operations
and financial information (such as costs, profits and plans for future
expansion or development, plans for rendering additional services, methods of
operation and marketing concepts of Employer, as well as employment policies
and plans), trade secrets, and other proprietary business information of the Company.
“Confidential Information” shall not include information which is or becomes in
the public domain through no action by Executive or information which is
generally disclosed by the Company to third parties without restrictions on
such third parties. Executive shall return all Confidential Information to the
Company upon termination of employment.

 

(b)                                 Solicitation of Customers. During his
employment with the Company and for a period after the termination of Executive’s
employment, regardless of the reason for the termination, equal to one (1) year
(the “Non-Competition Period”), Executive shall not influence or attempt to
influence, directly or indirectly, any customer of the Company to divert its
business away from the Company.

 

5

 

(c)                                  Soliciting Employees. Executive agrees that
during his employment with the Company and during the Non-Competition Period,
he will not directly or indirectly solicit any person who is then, or at any
time within six months prior thereto was, an employee of the Company to work
for any person or entity then in competition with the Company.

 

(d)                                 Non-Competition. During his employment with
the Company and during the Non-Competition Period, Executive shall not,
directly or indirectly, in any capacity:

 

(i)                                     Engage,
own or have any interest in; or

 

(ii)                                  Manage,
operate, join, participate in, accept employment with, render advice to, or
become interested in or be connected with;

 

any person or entity that competes with the
business of the Company. Notwithstanding the foregoing, holding five percent
(5%) or less of an interest in the equity, stock options or debt of any
publicly traded company, nor serving as a consultant to or member of the board
of directors of any entity approved by the Chief Executive Officer, shall not
be considered a violation of this Section 10.

 

(e)                                  Company Property. All information obtained in the course of
Executive’s work shall belong to Employer, and shall not be the subject of
publication or use without the written consent of the Chief Executive, whether
during or after the term of this Agreement. It is understood and agreed that
Executive shall not be entitled to retain any of the files or records of the
Company at any time. Upon termination or demand by the Chief Executive,
Executive shall promptly return all keys, equipment, books, records, files and
other property belonging to the Company.

 

(f)                                    Remedies. If Executive commits a breach or
threatens to commit a breach of any of the provisions of this Section 10, the Company
shall have the right and remedy to have the provisions of this Section 10
specifically enforced by any court having equity jurisdiction, it being
acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an
adequate remedy to the Company. Such right and remedy shall be in addition to,
and not in lieu of, any other rights and remedies available to the Company
under law or equity.

 

10.                                 Arbitration

 

(a)                                  Except
as provided in Section 10 above, in the event of a dispute arising out of the
terms and conditions of this Agreement, such dispute shall, absent settlement
of the parties, be promptly resolved by final and binding arbitration in the
State of Hawaii in accordance with the provisions of the Hawaii Uniform
Arbitration Act, Haw. Rev. Stat. Chapter 658A, by a single arbitrator mutually
agreed upon by the parties. The arbitrator shall be required to abide by the
provisions of this

 

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Agreement and
the arbitrator shall not modify or alter same. A judgment upon the award may be
entered in any court having jurisdiction of the parties.

 

(b)                                 In
arbitrations under this Agreement, each party shall bear the costs, fees and expenses
of presenting its own case, and one-half of the arbitrator’s fees and
administration expenses, unless otherwise ordered by the arbitrator for good
cause shown.

 

11.                                 Severability and Savings. Each provision in
this Agreement is separate. If necessary to effectuate the purpose of a
particular provision, the Agreement shall survive the termination of Executive’s
employment with the Company. If any provision of this Agreement, in whole or in
part, is held to be invalid or unenforceable, the parties agree that any such
provision shall be deemed modified to make such provision enforceable to the
maximum extent permitted by applicable law. As to any provision held to be
invalid or unenforceable, the remaining provisions of this Agreement shall
remain in effect.

 

12.                                 Binding Effect. This Agreement shall be
binding upon and shall inure to the benefit of Company and its successors and
assigns. This Agreement shall be binding upon and inure to the benefit of Executive,
his heirs and personal representatives. This Agreement is not assignable by Executive.

 

13.                                 Entire Agreement. This Agreement embodies
the entire agreement of the parties hereto respecting the matters within its
scope. This Agreement supersedes all prior agreements of the parties hereto on
the subject matter hereof. There are no representations, warranties, or
agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as set forth in this Agreement.

 

14.                                 Miscellaneous.

 

(a)                                  No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the Company
and Executive. The waiver or nonenforcement by the Company of a breach by Executive
of any provision of this Agreement shall not be construed as a waiver of any
subsequent breach by Executive.

 

(b)                                 Any
notice under this Agreement must be in writing and delivered personally or by
overnight courier, sent by facsimile transmission or mailed by registered or
certified mail to the parties at their respective addresses.

 

(c)                                  This
Agreement shall be governed by the laws of the State of Hawaii.

 

(d)                                 This
Agreement may be executed in counterparts, which together shall constitute one
Agreement.

 

(e)                                  By
their signatures below, the parties acknowledge that they have had sufficient
opportunity to read and consider, and that they have carefully read and
considered, each provision of this Agreement and that they are voluntarily
signing this Agreement.

 

7

 

This Agreement is executed this 4th day of August, 2006.

 

 

	
   

  	
   

  	
   

  	
  /S/ ROBERT I WEBBER

  	
   

  
	
   

  	
  Robert I. Webber

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Maui Land & Pineapple Company, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /S/ DAVID C. COLE

  	
   

  
	
   

  	
   

  	
  David C. Cole

  
	
   

  	
  Its

  	
  Chairman, President & CEO

  
						

 

8Exhibit 10.6

 

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 Section 3.2 of the Restricted Stock Agreement are referred
to in this Grant Notice as “Released Shares.”

 

	
  Holder:

  	
   

  	
  Brian
  C. Nishida

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
  May
  8, 2006

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares of Restricted Stock:

  	
   

  	
  5,000

  
	
   

  	
   

  	
   

  
	
  Performance Vesting Criteria:

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  purposes of this Agreement, financial and performance thresholds adopted by
  the Committee shall be determined, unless otherwise agreed by the Company and
  Holder, in accordance with consistently applied Generally Accepted Accounting
  Principals, as promulgated from time to time by the Financial Accounting
  Standards Board (“GAAP”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With
  proper regard to GAAP, and sound accounting judgments and the agreements of
  the Company and Holder, the Committee shall announce the extent of vesting of
  the Shares for the Performance Period as soon as reasonably practicable after
  audited financial statements are available for such year (the “Announcement
  Date”).

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

1

 

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 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/
  DAVID C. COLE

  	
   

  	
  By:

  	
   

  	
   /S/
  BRIAN C. NISHIDA

  
	
  Print
  Name:

  	
   

  	
   David
  C. Cole

  	
   

  	
  Print
  Name:

  	
   

  	
   Brian
  C. Nishida

  
	
  Title:

  	
   

  	
  Chairman,
  President & CEO

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  P.O.
  Box 187

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
  Kahului,
  Maui, Hawaii 96733

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  August
  7, 2006

  	
   

  	
   

  	
   

  	
   

  

 

2

 

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; 

 

(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;

 

1

 

(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 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

 

2

 

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 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

 

3

 

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.

 

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.

 

4

 

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.

 

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:

 

5

 

(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.

 

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.

 

6

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