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LEASE NO. (KAHUWAI PAPAYA LEASE) <br /> THIS INDENTURE OF LEASE, dated as of September 1, 1997 <br /> (the "Commencement Date"), by and between HENRY HAALILIO PETERS, <br /> OSWALD KOFOAD STENDER, RICHARD SUNG HONG WONG, MARION MAE <br /> LOKELANI LINDSEY and GERARD AULAMA JERVIS, as Trustees of the <br /> Estate of Bernice Pauahi Bishop, whose principal place of <br /> business and post office address is Suite 200, Kawaiahao Plaza, <br /> 567 South King Street, Honolulu, Hawaii 96813 ("Lessor"), and <br /> COUNTY OF HAWAII, a political subdivision of the State of Hawaii, <br /> whose principal place of business and post office address is 25 <br /> Aupuni Street, Hilo, Hawaii 96720 ("Lessee"). <br /> RECITALS <br /> A. Papaya ring spot virus infestation has decimated <br /> the papaya industry in major papaya growing areas in Puna, Hawaii <br /> and the island of Oahu. Hawaii's papaya farmers and papaya fruit <br /> handlers have suffered irretrievable production and financial <br /> losses and Hawaii has experienced decreased shares of the <br /> mainland United States and international papaya markets. <br /> B. Papaya farmers have attempted to plant papaya in <br /> areas not previously cultivated. These lands previously free of <br /> papaya ring spot virus have become infested with the disease <br /> after a short period of time. <br /> C. To date the only means of controlling papaya ring <br /> spot virus infestation is to remove physically all papaya plants <br /> infested with the disease, a measure which results in further <br /> loss of papaya production and income. Aggressive and innovative <br /> methods to control papaya ring spot virus infestation must be <br /> implemented immediately if Hawaii's papaya industry is to be <br /> saved. <br /> D. Research scientists at the Department of <br /> <br /> Agriculture of the State of Hawaii ("DOA") and the University of <br /> Hawaii ("UH"), acting through its College of Tropical Agriculture <br /> and Human Resources ("CTAHR") and other institutions have <br /> attempted to develop measures and technology which could moderate <br /> the impact of papaya ring spot virus on papaya crops, and to <br /> educate papaya growers in the use of these measures and <br /> technologies. Successful implementation of these measures could <br /> lead to a stabilization and restoration of the papaya industry <br /> and its contribution to the State's economy. <br /> E. DOA, CTAHR and Lessee propose to implement a <br /> demonstration quarantine program (the "Quarantine Program") in <br /> Puna, Hawaii, to demonstrate that papaya can be grown <br /> successfully under severe papaya ring spot virus pressure by <br /> following strict management protocols. <br /> GLS 081997 12548.6 GLS 2002 064 <br /> <br />