Document:

Employee Separation Agreement

HEI Exhibit 10.15 
 
EMPLOYMENT SEPARATION AGREEMENT 
 
This Agreement by and between ROBERT F. MOUGEOT (“Employee”) and HAWAIIAN ELECTRIC INDUSTRIES
(“HEI”), and its subsidiary and affiliated entities and the shareholders, directors, officers, employees and agents of HEI and its subsidiary and affiliated entities (collectively referred to as “Employer”) is effective as of the
date described in Section 7 below and sets forth the rights and obligations of the parties arising from Employee’s recruitment for, employment with, and separation from employment with Employer as of the date of the last signatory to this
Agreement. 
 
1. Separation from Employment

 
Employee hereby retires from employment with
Employer effective as of midnight, November 12, 2002. Employee shall be paid all salary then due plus all earned and accrued employee benefits less any applicable payroll taxes in accordance with the terms and conditions of the Employer’s
policies and plans governing such employee benefits. Employee shall not be required to perform any employment duties for Employer after November 12, 2002, and shall not receive, earn or be entitled to any wages, employee benefits or other
compensation from Employer from and after November 12, 2002, except as provided in the Employer’s employee benefits policies and plans or as provided in Section 2 below. 
 
2. Additional Separation Benefits 
 
Subject to the provisions of Section 7 below and in consideration of Employee’s execution of this
Agreement and his full and timely performance of all his promises and obligations in this Agreement, Employer agrees to provide Employee the following additional severance benefits upon the execution of this Agreement by Employee and the expiration
of the 

seven (7) day revocation period described in Section 7 below. 
 
a. Except as otherwise provided in Section 7 below, which shall supersede anything stated herein to the
contrary, a severance payment in the amount of Three Hundred Fifty Thousand and No/1000 Dollars ($350,000.00), less applicable payroll taxes payable as follows: 
 
(1) Seventy-Five Thousand and No/100 Dollars ($75,000.00), less applicable payroll taxes,
upon expiration of the seven (7) day recission period described in Section 7 below; 
 
(2) One Hundred Thousand and No/100 Dollars ($100,000.00), less applicable payroll taxes, on or before January 3, 2003;
and 
 
(3) One Hundred
Seventy-Five Thousand and No/100 Dollars ($175,000.00), less applicable payroll taxes, on or before January 5, 2004. 
 
b. Employee will be entitled to participate in the 2002 Executive Incentive Compensation Plan (“EICP) with no pro-rata adjustment for
retiring prior to December 31, 2002. In addition, if the earnings threshold is met for the 2002 EICP, Employee will receive a payout at the “Target” level for the goal “Overall performance evaluation by the President,” weighted
at 30 percent of Employee’s 2002 EICP. Employee will also be entitled to participate in the 2000-2002 Long-Term Incentive Plan (“LTIP”), 2001-2003 LTIP and the 2002-2004 LTIP with no pro-rata adjustment for retiring prior to December
31, 2002; provided, however, that if there is a payout for the HEI officers under the 2001-2003 LTIP and the 2002-2004 LTIP, Employee will be eligible for a 24/36 payout and a 12/36 payout, respectively. Effective upon the date of Employee’s
retirement, all outstanding non-qualified stock option (“NQSO”) grants already made to Employee 

 

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(1999, 2000, 2001 and 2002 grants) will become fully exercisable, notwithstanding that the option may not be otherwise fully exercisable
under Section 3.1 (a) of Employee’s Non-qualified Stock Option Agreement. In addition, upon Employee’s exercise of each NQSO stock option, Employee will be entitled to receive all dividend equivalent awards on Employee’s outstanding
NQSO grants up to and including dividend equivalent awards made on November 12, 2002. 
 
c. As a retiree of HEI, Employee will be eligible to receive retirement benefits generally available to other HEI retirees under The Postretirement Welfare Benefits Plan for Employees of Hawaiian
Electric Company, Inc. and Participating Employers. 
 
d. In consideration of Employer’s agreement to provide severance payments described in paragraph 2.a above, Employee agrees that such payments shall constitute voluntary prepayment of unemployment compensation benefits and/or
workers’ compensation benefits under Hawaii Revised Statutes Section 386-52 if Employee is awarded any unemployment or workers’ compensation benefits attributable to his employment or termination of employment with Employer. Employee
further agrees to meet in Honolulu, Hawaii, with legal counsel representing American Savings Bank (“ASB”) in the American Savings Bank, F.S.B. v. Paine Webber, Inc. litigation to prepare for his testimony in that litigation and to
be available during the trial, including mediation or arbitration, of the case to testify in good faith on behalf of ASB. The parties estimate that Employee’s preparation time should not exceed one (1) day and that his time testifying should
not exceed one (1) day, although Employee’s availability to testify may require more than one (1) day if the Court is not able to assign a specific day in 

 

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advance for Employee’s testimony. 
 
3. Employer Property 
 
Employee shall promptly return to Employer any remaining Employer information and property still in Employee’s possession or control
including and without limitation confidential business or customer reports, maps, files, memoranda, records, software, credit cards, door and file keys, computer access codes, disks and instruction manuals, and any other property which Employee
received or prepared or helped prepare in connection with employee’s employment with Employer. 
 
4. Confidentiality and Cooperation 
 
Employee and Employer agree that they will cooperate with each other to assure a harmonious and positive separation, and neither party
will make any disparaging comments about Employee, Employer, its directors, officers, financial operations or reports. As part of such cooperation, Employee agrees to Employer’s prior public statement of Employee’s retirement. Employee and
Employer agree to keep the terms, amount and fact of this Agreement completely confidential. However, Employee may discuss this Agreement with his attorney, accountant and immediate family; provided, they agree to keep the contents of this Agreement
confidential and not disclose it to others. Employer may likewise disclose the terms, amount or facts of this Agreement to those directors, officers, employees, attorneys, auditors, accountants, government rating agencies or other private entities
as necessary or prudent for its business operations. Employee also agrees that any and all information obtained by Employee or disclosed to Employee during his employment with the Employer which is not already known to the general public, including
but not limited to Employer’s financial and business information, strategic plans, projects, customers, programs, methods of operation, processes, practices, 

 

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policies and procedures, are strictly confidential and proprietary to Employer, and shall be treated as trade secrets of Employer. Employee
covenants in perpetuity that such trade secrets shall not be disclosed, discussed, or revealed to any persons, entities or organizations by Employee at any time. Employee understands and acknowledges that the existence of this confidentiality
provision is a material inducement for Employer to enter into this Agreement. The parties agree that Employer would suffer irreparable harm if Employee breaches this confidentiality provision, and, therefore, both parties agree that if such breach
occurs, then in addition to any other remedies available to Employer at law or equity Employee shall immediately repay Employer as a reasonable estimate of damages and not as a penalty an amount up to twenty-five percent (25%) of the severance
payment described in Section 2.a above plus interest at the maximum rate allowed by law from the date of payment of the severance payment until repaid by Employee and no further payments will be made under Section 2. 
 
5. Voluntary Agreement 
 
Employee fully understands his right to discuss and has had
the opportunity to discuss all aspects of this Agreement with Employee’s family or attorney and represents to Employer that Employee has carefully read and fully understands all of the provisions of this Agreement and that he is voluntarily
entering into this Agreement. 
 
6. Release,
Indemnification and Promise Not To Sue. 
 
a. Release. As a material inducement to Employer to enter into this Agreement and to provide to Employee the additional separation benefits described in Section 2 above, Employee hereby irrevocably and unconditionally
releases, acquits and forever discharges Employer from any and all claims, liabilities, and expenses (including attorneys’ fees and costs actually incurred) of any nature whatsoever, statutory or 

 

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common law, known or unknown, suspected or unsuspected (including, but not limited to any claims arising out of or under any (i) contract of
employment; (ii) federal, state or local laws prohibiting age or other forms of employment discrimination; (iii) Employee’s recruitment for employment with or separation from employment with Employer; and, (iv) employee benefit plan or law)
which Employee now has, owns or holds, or claims to have, own or hold, or which Employee at any time heretofore had, owned or held, or claimed to have, own or hold against Employer based on any act or omission occurring up to the termination of
Employee’s employment with Employer (hereafter collectively called “Claims”). The foregoing release shall not apply to any claim by Employee to enforce Employer’s express obligations under this Agreement or for benefits under any
federal or Hawaii law that cannot be waived or discharged by agreement. 
 
b. Indemnification. 
 
As a further material inducement to Employer to enter into this Agreement and to pay to employee the separation benefits described in Section 2 above, Employee hereby agrees to indemnify and hold Employer harmless from and against
any and all losses, costs, damages, or expenses, including, without limitation, attorneys’ fees incurred by Employer arising out of any breach of this Agreement by Employee and not to initiate or file any claim or lawsuit over any Claim
released above. Employee expressly understands and acknowledges that this Agreement may be pleaded as a defense to, and may be used as the basis for an attempted injunction against any action, suit, administrative or other proceeding which may be
instituted, prosecuted or attempted as a result of an alleged breach of this Agreement by Employee. 
 

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c. Promise
Not To Sue. 
 
Employee also agrees not to
file or initiate any claim or lawsuit with any agency or court based on any claim covered by the foregoing release, including any claim arising out of employee’s employment or separation from employment with Employer other than to enforce this
Agreement. If Employee files any administrative claim or lawsuits against Employer based on any claim arising out of his employment or termination of employment with Employer, then in addition to all other remedies provided by law or equity,
Employee agrees to pay Employer for all costs, including reasonable attorneys fees, incurred by Employer in defending against administrative claims or lawsuit and to credit any amounts paid under this Agreement against any recovery obtained by
Employee. 
 
7. Review and Revocation
Rights. 
 
EMPLOYEE UNDERSTANDS AND
ACKNOWLEDGES THAT HE HAS UP TO TWENTY-ONE (21) DAYS TO DECIDE WHETHER TO SIGN THIS AGREEMENT AND SHOULD CONSULT WITH AN ATTORNEY. WITHIN SEVEN (7) DAYS AFTER SIGNING THIS AGREEMENT, EMPLOYEE MAY RESCIND IN WRITING ONLY EMPLOYEE’S RELEASE OF ANY
CLAIMS UNDER THE FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT (THE “ADEA”). IF THE SEVENTH DAY FALLS ON A SATURDAY, SUNDAY, OR HOLIDAY, THE NEXT REGULAR BUSINESS DAY WILL BE CONSIDERED THE SEVENTH DAY. IF EMPLOYEE ELECTS IN A TIMELY MANNER
TO RESCIND THE RELEASE OF ANY FEDERAL ADEA CLAIM, THE RELEASE WILL STILL REMAIN IN EFFECT FOR ALL OTHER CLAIMS AND THE ADDITIONAL TERMINATION PAY AND BENEFITS 

 

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DESCRIBED IN PARAGRAPH 2 ABOVE SHALL BE MODIFIED BY REDUCING THE SEVERANCE PAYMENT IN SECTION 2.a TO A TOTAL OF SEVENTY-FIVE THOUSAND AND
NO/100 DOLLARS ($75,000.00). 
 
EMPLOYEE
UNDERSTANDS AND AGREES THAT UNLESS OTHERWISE AGREED IN WRITING BY THE PARTIES, THE TERMS OF THIS AGREEMENT WILL NOT BE EFFECTIVE UNTIL THE LATER OF THE TERMINATION OF EMPLOYEE’S EMPLOYMENT WITH EMPLOYER OR THE EXPIRATION OF THE SEVEN (7) DAY
REVOCATION PERIOD DESCRIBED ABOVE. IF EMPLOYER EXECUTES AND DELIVERS THIS AGREEMENT BUT THEN TIMELY REVOKES HIS RELEASE OF ANY FEDERAL AGE DISCRIMINATION CLAIM, THIS AGREEMENT AND RELEASE OF ALL OTHER CLAIMS WILL REMAIN IN FULL FORCE AND EFFECT.

 

	8.	 	Arbitration. 

 
Because of the delay, expense and publicity which results from the use of the State and Federal court systems, Employer and Employee agree
to submit to final and binding arbitration any claims and disputes arising out of or related to this Agreement and Employee’s recruitment, employment, compensation, benefits, or termination of employment, including but not limited to all claims
and disputes arising under Hawaii and Federal wrongful termination and employment discrimination laws (e.g. Title VII, ADEA, ADA, FMLA, or other anti-discrimination laws) rather than to use such court systems. In any such arbitration, the then
existing American Arbitration Association rules for resolving employment disputes shall govern the arbitration, subject to the Federal Arbitration Act, if applicable, or if not applicable then the Hawaii Arbitration Act, HRS Chapter 658 then in
effect. 
 

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9. Mutual
Agreement 
 
The parties each represent and
acknowledge that they are entering into this Agreement to effect an amicable and positive separation of Employee’s employment with Employer and not as an admission that either party has violated any law, or other legal obligations such as those
described in paragraph 6 above. This Agreement represents an amicable compromise and settlement of all of Employee’s rights, claims and benefits. 
 
10. Entire Agreement 
 
Employee represents and acknowledges that in executing this Agreement he does not rely, and has not relied, upon any representation or
statement by Employer not set forth in this Agreement regarding this agreement or employee’s recruitment for, employment with, or separation from employment with Employer. 
 
This Employment Separation Agreement sets forth the entire agreement between Employer and employee with
regard to the conditions of Employee’s separation and retirement from employment with Employer. Employee understands that this Agreement supersedes any and all prior agreements or understandings between the parties regarding Employee’s
recruitment for, employment with and separation or retirement from employment with employer. This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns. 
 
Employee agrees to keep employer informed of his address to
ensure Employee’s receipt of all mailings, such as W-2s, etc. 
 

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PLEASE READ
CAREFULLY. THIS EMPLOYMENT SEPARATION AGREEMENT INCLUDES A RELEASE OF ALL CLAIMS. 
 

	 EMPLOYEE
	 	 	 	 EMPLOYER
  
 HAWAIIAN ELECTRIC INDUSTRIES, INC.

	
	 /S/    ROBERT F. MOUGEOT

	 	 	 	 By:
	 	 /S/    ROBERT F. CLARKE

	 ROBERT F. MOUGEOT
	 	 	 	 	 	 ROBERT F. CLARKE
 Its Chief Executive Officer

	
	 Date:
	 	 November 17, 2002

	 	 	 	 Date:
	 	 November 17, 2002

 

10HEI Executive Death Benefit Plan

  HEI Exhibit 10.16
  EXECUTIVE DEATH BENEFIT PLAN 
 OF 
 HAWAIIAN ELECTRIC INDUSTRIES,
INC.
 AND PARTICIPATING SUBSIDIARIES
  I.        ESTABLISHMENT OF PLAN
  Hawaiian Electric
Industries, Inc. (“HEI”) hereby establishes this Executive Death Benefit Plan of Hawaiian Electric Industries, Inc. and Participating Subsidiaries effective September 1, 2001.  The only benefits provided under this Plan are death
benefits.  The Plan is an unfunded welfare plan maintained for the purpose of providing benefits for a select group of management employees of HEI and certain of its subsidiaries, as described in section 2520.104-24 of the regulations
promulgated by the Secretary of Labor pursuant to the Employee Retirement Income Security Act of 1974, as amended.
  II.      DEFINITIONS
            2.1.           “Administrative Committee” means the Administrative Committee for the HEI Executive Death
Benefit Plan, which shall be a three-person committee composed of the Vice President-Administration of HEI, the Vice President-Corporate Excellence of HECO, and the Manager-Compensation and Benefits of HECO (or the holders of any successor
positions, however designated), and shall have the powers and duties set forth herein. 
            2.2.          “Beneficiary” means the beneficiary designated in writing by a Participant.  The
Beneficiary designation must be made on a form provided by the Administrative Committee.  A Participant must designate his or her Beneficiary at the time he or she becomes a Participant, and may change the designated Beneficiary at any time
thereafter by executing a new Beneficiary designation.  If the designated Beneficiary does not survive the Participant, or if there is no valid Beneficiary designation at the time of the Participant’s death, any benefits payable hereunder
shall be paid to the Participant’s estate.
           2.3.          “Disabled” or
“Disability” refers to the existence of a disability within the meaning of the long-term disability program maintained by the Participating Employer by whom a Participant is employed.
            2.4.           “Eligible Position” means a management position that is designated in the personnel records
of the Participating Employer as:

	  
 	  a.
 	  Manager or above at HEI, HECO, MECO, or HELCO, Grade 50 and above at HEI; or
 
	  
 	  
 	  
 
	  
 	  b.
 	  President and CEO at ASB.
 

            2.5.          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

             2.6.          “Participant” means a management employee
or former employee of a Participating Employer who has satisfied the eligibility requirements of the Plan, as set forth in Article III below, and has not terminated employment or changed his or her position in a manner that results in a loss of
eligibility to participate.
            2.7.          “Participating Employer” means HEI
or one of the following HEI subsidiaries: Hawaiian Electric Company, Inc. (“HECO”); Maui Electric Company, Limited (“MECO”); Hawaii Electric Light Company, Inc. (“HELCO”); and American Savings Bank, F.S.B.
(“ASB”).
           2.8.          “Plan” means the Executive Death Benefit
Plan of Hawaiian Electric Industries, Inc. and Participating Subsidiaries, as set forth in this document and as amended from time to time.
            2.9.          “Retire” or “Retirement” means termination of employment with a Participating
Employer after the Participant has qualified for immediate commencement of normal or early retirement benefits under the Retirement Plan for Employees of Hawaiian Electric Industries, Inc. and Participating Subsidiaries or the American Savings Bank
Retirement Plan (whether or not such Participant actually elects to have such retirement benefits commence immediately).
            2.10.          “Salary” means base annual rate of salary, including any elective contributions to the
Hawaiian Electric Industries Retirement Savings Plan, the Hawaiian Electric Industries, Inc. FlexPlan, the ASB Cafeteria Plan, or any successor plan thereof, but excluding any incentive compensation, bonuses, deferred compensation, fringe benefits,
or other amount not included in base annual salary.  Amounts paid under the Merit Performance Bonus Plan of ASB are not included in Salary, regardless of whether the Participant elects to contribute such amounts to the Hawaiian Electric
Industries Retirement Savings Plan.
  III.     ELIGIBILITY
            3.1.          Becoming a Participant.  To become a Participant in the Plan, a person must:

	  
 	  a.
 	  Be employed by a Participating Employer in an Eligible Position on or after the effective date of this Plan, or have been employed in an Eligible Position at ASB on or after
January 1, 2001; and
 
	  
 	  
 	  
 
	  
 	 b.
 	  Be designated as a Participant in writing by the Administrative Committee, or by a member of the Administrative Committee to whom the Committee has delegated the authority to
designate Participants.
 

            3.2.          Forfeiture Upon
Termination of Employment.  A Participant who terminates employment with the Participating Employers for any reason other than Retirement, death, or Disability shall cease to be a Participant and shall forfeit any and all rights to benefits
under this Plan.  
            3.3          Forfeiture Upon Transfer to Ineligible
Position.  A Participant who transfers to a position that is not an Eligible Position shall cease to be a Participant and shall forfeit any and all rights to benefits under this Plan. 
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   IV.     BENEFITS
            4.1.          Benefits for HEI, HECO, MECO, and HELCO Participants.  A Participant who is employed in,
who Retired from, or who terminated employment due to Disability from, an Eligible Position with HEI, HECO, MECO, or HELCO, shall receive the following benefits: 

	  
 	  a.
 	  If the Participant dies while actively employed, the Participant’s Beneficiary shall receive a lump sum death benefit equal to (i) two times the
Participant’s Salary at the date of his or her death, (ii) divided by one minus the highest marginal rate of federal income tax imposed on benefits of this type as of the date of the Participant’s death.
 
	  
 	  
 	  
 
	  
 	 b.
 	  If the Participant dies after he or she Retires, the Participant’s Beneficiary shall receive a lump sum death benefit equal to (i) one times the
Participant’s Salary at the date of his or her Retirement, (ii) divided by one minus the highest marginal rate of federal income tax imposed on benefits of this type as of the date of the Participant’s death.
 
	  
 	  
 	  
 
	  
 	  c.
 	  If the Participant incurs a Disability, then:
 
	  
 	  
 
	  
 	  
 	  i.
 	  If the Participant dies while still Disabled and before attaining age 65, the Participant’s Beneficiary shall receive a lump sum death benefit equal to (i) two times the
Participant’s Salary at the date he or she became Disabled, (ii) divided by one minus the highest marginal rate of federal income tax imposed on benefits of this type as of the date of the Participant’s death.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 ii.
 	  If the Participant continues to be Disabled until the time he or she attains age 65, then upon the Participant’s death after such time the Participant’s Beneficiary
shall receive a lump sum death benefit equal to (i) one times the Participant’s Salary at the date he or she became Disabled, (ii) divided by one minus the highest marginal rate of federal income tax imposed on benefits of this type as of the
date of the Participant’s death.
 

            4.2.          Benefits
for ASB Participants.  If a Participant dies after he or she Retires from an Eligible Position with ASB, the Participant’s Beneficiary shall receive a lump sum death benefit equal to (i) one times the Participant’s Salary at the
date of his or her Retirement, (ii) divided by one minus the highest marginal rate of federal income tax imposed on benefits of this type as of the date of the Participant’s death.  A Participant who is employed in an Eligible Position
with ASB shall not be entitled to any benefits hereunder if he or she dies, becomes Disabled, or otherwise terminates employment before he or she Retires.
            4.3.          Transfers Between ASB and Other Participating Employers.  If a Participant transfers from
an Eligible Position with ASB to an Eligible Position with another Participating Employer, or vice versa, the Participant’s entitlement to benefits shall be determined based on the Eligible Position in which he or she is last
employed.
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             4.4.          Payment.  All benefits payable under
this Plan shall be paid by the Participating Employer by which the Participant was last employed.  
           4.5.          Vesting.  A Participant shall have a vested right to benefits under this Plan upon
Retirement.  Prior to Retirement, any benefit hereunder shall be subject to forfeiture in accordance with Section 3.2 or Section 3.3; provided, however, that no Participant’s right to benefits may be reduced or eliminated except in
accordance with Section 3.2 or Section 3.3 or with the written consent of such Participant.
            4.6.          Claims Procedure.  If any Participant or Beneficiary believes he or she is entitled to a
benefit from the Plan which is different from the benefit initially determined, such Participant or Beneficiary may file a written claim for benefits with the Manager-Compensation and Benefits of HECO (or the holder of any successor position,
however designated) (the “Manager”).  The Manager shall consider such written claim and render a decision within ninety (90) days following receipt thereof.  If the Manager denies any part of the claim, he or she shall provide
the claimant with written notice of the denial and of the claimant’s right to a further review.  The notice shall set forth, in a manner calculated to be understood by the claimant, the reason for the denial and shall refer to specific
Plan provisions on which the denial is based and provide a description and explanation of additional information which the claimant might provide to perfect the claim.
  Within ninety (90) days
after receiving notice that a claim has been denied, the claimant may file a written appeal with the full Administrative Committee.  The claimant may submit written comments, documents, records, and other information relating to the
claim.  Upon request, the claimant may obtain, free of charge, reasonable access to, and copies of, documents, records, and other information relevant to the claim.  The Administrative Committee may require the claimant to provide such
additional information or testimony as the Administrative Committee, in its sole discretion, deems useful or appropriate to its consideration of the claim.  In reviewing the claim, the Administrative Committee shall take into account all
comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The Administrative Committee
shall render its final decision within sixty (60) days of receipt of the request for reconsideration unless special circumstances require an extension of time.  If such an extension is required, the Administrative Committee shall provide the
claimant with written notice of the extension within the initial sixty (60) day period, and the Administrative Committee shall render its decision as soon as possible but in no event later than one hundred twenty (120) days following receipt of the
appeal.  If the Administrative Committee’s final decision is a denial of the claim, the Administrative Committee shall provide written notice of the denial, which notice shall set forth, in a manner calculated to be understood by the
claimant, the reason for the denial and shall refer to specific Plan provisions on which the denial is based.  
 Claim determinations by the Manager and the Administrative Committee shall be
made in their discretion, as provided in Section 5.1.  The final decision of the Administrative Committee shall be binding and conclusive on all persons.
  If the Manager or Administrative
Committee fails to respond to a claimant within the time limits set forth in this Section, the claimant may consider the claim denied and may pursue whatever 
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   additional remedies are available to it.  A claimant must comply with these procedures and exhaust all possibilities contained herein before seeking relief in any other
forum.
  V.       ADMINISTRATION
            5.1.          Administrative Committee’s Powers and Discretion. The Administrative Committee shall have
the power to interpret and construe the provisions of the Plan, to resolve any ambiguities and reconcile any inconsistencies in its provisions, and to decide all questions of fact that arise in the operation of the Plan.  All such powers shall
be exercised in the Administrative Committee’s discretion.  Specifically, but without limiting the generality of the foregoing, the Administrative Committee shall determine, in its discretion, all questions with respect to any
individual’s rights under the Plan, including, but not limited to, eligibility for participation, eligibility for and the amount of benefits payable from the Plan, the validity and effect of any Beneficiary designation hereunder, and the proper
Beneficiary to whom any benefits hereunder will be paid.  The Administrative Committee, acting unanimously, shall also have the power to waive the application of Section 3.3 to a Participant if extenuating circumstances exist.  The
decision of the Administrative Committee with regard to the interpretation or construction of the Plan, or on any other matter within its authority, shall be binding and conclusive upon the Participating Employers and upon each Participant, 
Beneficiary, and any other interested party.  
           5.2.          Delegation.  The Administrative Committee may delegate authority to one or more of its
members, or to any other employee of a Participating Employer, in its discretion.  In particular, the Administrative Committee may delegate authority for the day-to-day administration of the Plan to the Manager-Compensation and Benefits of HECO
or such persons in the HECO Benefits Department as such Manager may designate.
  VI.     MISCELLANEOUS
            6.1.          Effect on Prior Deferred Compensation Agreements.  This Plan supersedes certain Deferred
Compensation Agreements between Participants herein and HEI regarding the payment of death benefits similar to those provided hereunder.  Such Deferred Compensation Agreements shall be of no further force or effect.  As a condition of
participation in this Plan, each Participant who was previously a party to such an agreement shall execute a written revocation of such agreement in a form provided by the Administrative Committee.  This Plan does not affect Deferred
Compensation Agreements that are currently in force between HEI and individuals who do not become Participants in this Plan, including retirees, disabled persons, and certain active employees of the Participating Employers who are not currently
employed in Eligible Positions but who were previously employed in such positions and have been permitted to retain the benefit of Deferred Compensation Agreements.  
            6.2.          Amendment and Termination.  The Administrative Committee may amend or terminate the Plan
at any time in its discretion; provided, however, that no amendment or termination of the Plan shall reduce the rights and benefits of any person who is a Participant at the time of the amendment or termination without such Participant’s
written consent.  No amendment or termination of the Plan shall affect benefits that have vested in accordance with Section 4.5.  
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             6.3.          No Funding.  Benefits shall be paid as
needed solely from the general assets of the Participating Employers, insurance contracts whose premiums are paid directly by the Participating Employers from their general assets, or a combination thereof.  This Plan shall constitute solely an
unsecured promise by the Participating Employers to pay the benefits described herein.  Participants and Beneficiaries shall rely solely upon such unsecured promise, and shall have no right, title, interest, or claim to any specific asset,
fund, reserve, account, insurance policy, or other property of any nature.
            6.4.          Life Insurance Policies.  The Administrative Committee, in its absolute discretion, may
purchase or maintain life insurance contracts to assist in meeting the Participating Employers’ benefit obligations hereunder.  Any such policies shall be the property of HEI or the Participating Employer purchasing and maintaining such
policies.  The Administrative Committee shall have the exclusive and unrestricted right to make any elections, exercise any rights, and receive and use any benefits payable thereunder.  No Participant or Beneficiary shall have any interest
in any such policy or any rights thereunder.
            6.5.          Nonalienation. 
No benefit payable under this Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void; nor shall any such benefit be in any manner
liable for or subject to the debts, contracts, liabilities, engagements, or torts of, or claims against, any Participant or Beneficiary.
            6.6.          No Right to Employment.  Nothing in this Plan shall give any Participant any right to
continued employment with any Participating Employer or limit in any way the Participating Employers’ right to discharge any Participant.
           6.7.          Indemnification.  The Participating Employers shall indemnify and hold harmless their
respective directors, officers, employees, and agents, including, without limitation, the members of the Administrative Committee, against any and all claims, losses, damages, expenses, and liabilities arising, directly or indirectly, from their
responsibilities in connection with the Plan, and from the defense costs thereof (including reasonable attorneys’ fees), to the extent permitted by law and except where any such liability is judicially determined to be the result of gross
negligence or willful misconduct. The right of indemnity shall be conditioned upon (1) timely notice to HEI of any claim asserted against a person within the scope of this Section, and (2) the indemnified person’s reasonable cooperation and
assistance in the defense of such claim.
            6.8.          Costs of
Enforcement.  If the Administrative Committee denies a claim for benefits under this Plan, and the claimant is later determined to be entitled to such benefits, then in addition to such benefits the claimant shall be entitled to recover all
costs of enforcing his or her claim, including, without limitation, attorneys’ fees and other legal costs.
            6.9.          Governing Law.  This Plan shall be governed by, and construed and enforced in accordance
with, the laws of the State of Hawaii, to the extent such laws are not preempted by ERISA.
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   TO RECORD the adoption of this Plan, the undersigned have executed this document this 24th day of August, 2001.

	  
 	  
 	  HAWAIIAN ELECTRIC INDUSTRIES, INC.
 
	  
 	  
 	  
 
	  
 	  
 	 By
 	  /s/ ROBERT F. CLARKE
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  Its
 	  Chairman, President & Chief Executive Officer
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  By
 	  /s/ PETER C. LEWIS
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Its
 	  Vice President – Administration & Corporate Secretary
 
	  
 	  
 	  
 	  
 
	  ADOPTED AND APPROVED BY THE
 PARTICIPATING EMPLOYERS:
 	  
 	  
 
	  
 	  
 	  
 
	  HAWAIIAN ELECTRIC COMPANY, INC.
 	  
 	  AMERICAN SAVINGS BANK, F.S.B.
 
	  
 	  
 	  
 
	  By
 	  /s/ T. MICHAEL MAY
 	   
 	  By
 	  /s/ CONSTANCE H. LAU
 
	  
 	 
 	   
 	  
 	 
 
	 Its
 	 President & Chief Executive Officer
 	   
 	  Its
 	  President & Chief Executive Officer
 
	  
 	  
 	  
 
	  MAUI ELECTRIC COMPANY, LIMITED
 	  
 	  HAWAII ELECTRIC LIGHT COMPANY, INC.
 
	  
 	  
 	  
 
	  By
 	  /s/ EDWARD L. REINHARDT
 	  
 	  By
 	  /s/ WARREN H.W. LEE
 
	  
 	 
 	  
 	  
 	 
 
	 Its
 	 President
 	  
 	 Its
 	 President
 

 7

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