Haliimaile Pineapple Co., the startup that is resurrecting the pineapple industry on Maui, purchased Maui Pineapple Co.'s operating equipment, materials, supplies and customer lists for a discounted price of $680,000, and also agreed to other financial terms to keep the agricultural business alive on the Valley Isle.

Financially ailing Maui Land & Pineapple Co., which sold its pineapple operations to Haliimaile Pineapple last month as part of a broad-based restructuring, said in a regulatory filing yesterday that the net book value (assets minus liabilities) of the equipment and other items—which are due to be paid by Haliimaile Pineapple over five years—was about $3 million.

Haliimaile Pineapple, which hired 66 of the 206 Maui Pineapple employees that were terminated on Dec. 31, began operating as a new entity last Saturday following the shutdown of Maui Pineapple after 97 years in business.

The major shareholder of Haliimaile Pineapple is Pardee Erdman, founder and owner of Ulupalakua Ranch, whose Tedeschi Vineyards produce a variety of wines out of pineapple juice. Other key shareholders and directors in the company are Doug Schenk, former president of Maui Pineapple; Erdman; former Maui Pineapple vice presidents Doug MacCleur and Ed Chenchin; and former Maui Pineapple operating directors Darren Strand and Rudy Balala.

Haliimaile Pineapple also will pay MLP a license fee of $20,000 to $30,000 annually for 60 years for the exclusive, nontransferable, worldwide right to use Maui Pineapple trademarks, trade names, symbols and logos for the sale, marketing and distribution of fresh pineapple grown on Maui.

MLP also is leasing to Haliimaile Pineapple approximately 950 acres and 59,000 square feet of office and warehouse space at market rents totaling approximately $420,000 per year for 20 years with provisions for annual rent increases beginning on Jan. 1, 2014, and an option exercisable through Dec. 31, 2010, to expand the numbers of acres subject to the lease by up to 570 acres.

In addition, MLP agreed to provide Haliimaile Pineapple water from private water sources to which MLP has contractual rights, and Haliimaile Pineapple will pay Maui Pineapple a license fee—based on tons harvested—to harvest the existing pineapple crop through June 30, 2011, and fruit grown under an agreement between Maui Pineapple and a private grower until this year's end.