HAWAIIAN ELECTRIC CO INC
HEI EXECUTIVE DEATH BENEFIT PLAN
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<TYPE>EX-10.16
<SEQUENCE>10
<FILENAME>dex1016.htm
<DESCRIPTION>HEI EXECUTIVE DEATH BENEFIT PLAN
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<TITLE>HEI EXECUTIVE DEATH BENEFIT PLAN</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">HEI Exhibit 10.16 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">EXECUTIVE DEATH BENEFIT PLAN </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">OF </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">HAWAIIAN ELECTRIC INDUSTRIES, INC. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>AND PARTICIPATING SUBSIDIARIES </U></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">I.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ESTABLISHMENT OF PLAN </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Hawaiian Electric Industries, Inc.
(&#147;HEI&#148;) hereby establishes this Executive Death Benefit Plan of Hawaiian Electric Industries, Inc. and Participating Subsidiaries effective September&nbsp;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. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">II.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">DEFINITIONS </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.1. &#147;Administrative Committee&#148;
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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">2.2. &#147;Beneficiary&#148; 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&#146;s death, any benefits payable hereunder shall be paid to the Participant&#146;s estate. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">2.3. &#147;Disabled&#148; or &#147;Disability&#148; 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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.4. &#147;Eligible Position&#148; means a management position that is designated in the personnel records of the Participating Employer as: </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">a.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Manager or above at HEI, HECO, MECO, or HELCO, Grade 50 and above at HEI; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">b.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">President and CEO at ASB. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.5. &#147;ERISA&#148; means
the Employee Retirement Income Security Act of 1974, as amended. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.6. &#147;Participant&#148; 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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.7. &#147;Participating Employer&#148; means HEI or one of the following HEI subsidiaries: Hawaiian Electric Company, Inc. (&#147;HECO&#148;); Maui
Electric Company, Limited (&#147;MECO&#148;); Hawaii Electric Light Company, Inc. (&#147;HELCO&#148;); and American Savings Bank, F.S.B. (&#147;ASB&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">2.8. &#147;Plan&#148; 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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.9. &#147;Retire&#148; or &#147;Retirement&#148; 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). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.10. &#147;Salary&#148; 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. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">III.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ELIGIBILITY </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.1. <U>Becoming a Participant</U>. To become
a Participant in the Plan, a person must: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">a.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">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&nbsp;1, 2001; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">b.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">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. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.2. <U>Forfeiture Upon Termination of Employment</U>. 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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.3 <U>Forfeiture Upon Transfer to Ineligible Position</U>. 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">IV.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">BENEFITS </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1. <U>Benefits for HEI, HECO, MECO, and HELCO
Participants</U>. 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: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">a.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If the Participant dies while actively employed, the Participant&#146;s Beneficiary shall receive a lump sum death benefit equal to (i)&nbsp;two times the Participant&#146;s Salary
at the date of his or her death, (ii)&nbsp;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&#146;s death. </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">b.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If the Participant dies after he or she Retires, the Participant&#146;s Beneficiary shall receive a lump sum death benefit equal to (i)&nbsp;one times the Participant&#146;s Salary
at the date of his or her Retirement, (ii)&nbsp;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&#146;s death. </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">c.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If the Participant incurs a Disability, then: </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">i.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If the Participant dies while still Disabled and before attaining age 65, the Participant&#146;s Beneficiary shall receive a lump sum death benefit equal to (i)&nbsp;two times the
Participant&#146;s Salary at the date he or she became Disabled, (ii)&nbsp;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&#146;s death.
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">ii.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If the Participant continues to be Disabled until the time he or she attains age 65, then upon the Participant&#146;s death after such time the Participant&#146;s Beneficiary shall
receive a lump sum death benefit equal to (i)&nbsp;one times the Participant&#146;s Salary at the date he or she became Disabled, (ii)&nbsp;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&#146;s death. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.2. <U>Benefits for ASB Participants</U>. If a Participant dies after he or she
Retires from an Eligible Position with ASB, the Participant&#146;s Beneficiary shall receive a lump sum death benefit equal to (i)&nbsp;one times the Participant&#146;s Salary at the date of his or her Retirement, (ii)&nbsp;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&#146;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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.3. <U>Transfers Between ASB and Other Participating
Employers</U>. If a Participant transfers from an Eligible Position with ASB to an Eligible Position with another Participating Employer, or vice versa, the Participant&#146;s entitlement to benefits shall be determined based on the Eligible
Position in which he or she is last employed. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.4. <U>Payment</U>. All benefits payable under this Plan shall be paid by the Participating Employer by
which the Participant was last employed. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.5. <U>Vesting</U>. 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&nbsp;3.2 or Section&nbsp;3.3; provided, however, that no Participant&#146;s right to benefits may be reduced or eliminated except in
accordance with Section&nbsp;3.2 or Section&nbsp;3.3 or with the written consent of such Participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.6. <U>Claims Procedure</U>. 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 &#147;Manager&#148;). The Manager shall consider such written claim and render a decision within ninety (90)&nbsp;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&#146;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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Within ninety (90)&nbsp;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)&nbsp;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)&nbsp;day period, and the Administrative Committee shall render its decision as soon as possible but in no event
later than one hundred twenty (120)&nbsp;days following receipt of the appeal. If the Administrative Committee&#146;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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Claim determinations by the Manager and the Administrative Committee shall be made in their discretion, as provided in Section&nbsp;5.1. The final decision of the Administrative Committee shall be binding and
conclusive on all persons. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">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 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">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. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">V.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ADMINISTRATION </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.1. <U>Administrative Committee&#146;s
Powers and Discretion</U>. 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&#146;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&#146;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&nbsp;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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.2. <U>Delegation</U>. 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. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">VI.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">MISCELLANEOUS </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.1. <U>Effect on Prior Deferred
Compensation Agreements</U>. 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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.2. <U>Amendment and Termination</U>. 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&#146;s written consent. No amendment or termination of the Plan
shall affect benefits that have vested in accordance with Section&nbsp;4.5. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.3. <U>No Funding</U>. 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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.4. <U>Life Insurance Policies</U>. The Administrative Committee, in its absolute discretion, may purchase or maintain
life insurance contracts to assist in meeting the Participating Employers&#146; 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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.5. <U>Nonalienation</U>. No benefit payable under this Plan shall be subject in any manner to anticipation, alienation,
sale<B>, </B>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. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.6. <U>No Right to Employment</U>. 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&#146; right to discharge any Participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">6.7. <U>Indemnification</U>. 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&#146; 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)&nbsp;timely notice to HEI of any claim asserted against a
person within the scope of this Section, and (2)&nbsp;the indemnified person&#146;s reasonable cooperation and assistance in the defense of such claim. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">6.8. <U>Costs of Enforcement</U>. 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&#146; fees and other legal costs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">6.9. <U>Governing Law</U>. 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. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">TO RECORD the adoption of this Plan, the undersigned have executed
this document this 24</FONT><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> day of August, 2001. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="5%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="94%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">HAWAIIAN ELECTRIC INDUSTRIES, INC.</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">\s\ Robert F. Clarke</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Its Chairman, President &amp; Chief Executive Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">\s\ Peter C. Lewis</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Its Vice President &#150; Administration &amp; Corporate Secretary</FONT></TD></TR>
</TABLE></DIV> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="43%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="5%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="44%"></TD></TR>
<TR>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">ADOPTED AND APPROVED BY THE PARTICIPATING<BR>EMPLOYERS:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD COLSPAN="3" VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">HAWAIIAN ELECTRIC COMPANY, INC.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">AMERICAN SAVINGS BANK, F.S.B.</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">\s\ T. Michael May</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">\s\ Constance H. Lau</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Its President &amp; Chief Executive Officer</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Its President &amp; Chief Executive Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">MAUI ELECTRIC COMPANY, LIMITED</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">HAWAII ELECTRIC LIGHT COMPANY, INC.</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">\s\ Edward L. Reinhardt</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">\s\ Warren H.W. Lee</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Its President</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Its President</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></P>

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