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<br />HAWAII CORRECTIONAL INDUSTRIES <br />LEASE AGREEMENT <br /> <br />THIS INDENTURE OF LEASE, made this day of <br />2009, by and between the COUNTY OF HAW AI'I, a municipal corporation of the State ofHawai'i, <br />whose principal place of business and mailing address is 25 Aupuni Street, Hilo, Hawai'i 96720 <br />(hereinafter referred to as the "County"), and HAWAII CORRECTIONAL INDUSTRIES, a Division <br />of the Department of Public Safety, State of Hawaii, whose principal place of business and mailing <br />address is 919 Ala Moana Boulevard, 4th Floor, Honolulu, Hawai'i 96814 (hereinafter referred to as <br />"HCI"). <br /> <br />WITNESSETH: <br /> <br />WHEREAS, due to the closing of the Kiilani Correctional Facility, HCI desires to occupy a <br />portion of the premises known as the Old Hilo Hospital Complex, located at 34 Rainbow Drive, Hilo, <br />Hawai'i 96720, identified as being a portion of Tax Map Key: (3)2-3-026:008 (hereinafter <br />"Complex"); and <br /> <br />WHEREAS, the County's possessory interest in the Complex is via an Executive Order from. <br />the State of Hawai'i. Therefore, all successor interest holders are also subject to any terms and <br />conditions required by the State ofHawai'i, including divestment of all interests; and <br /> <br />WHEREAS, the Complex is an aged facility and in various states of disrepair; and <br /> <br />WHEREAS, the County has been notified by its insurance carrier that due to the age and <br />condition of the premises at 34 Rainbow Drive that those facilities will no longer be covered by <br />insurance; and <br /> <br />WHEREAS, HCI enters into this lease for a portion of the Complex with full and complete <br />knowledge of the condition of the premises due to its age and condition; and <br /> <br />WHEREAS, HCI, being intimately familiar with the condition of the Complex, desires to <br />utilize a portion of the building to conduct its training and skills program and provide work <br />opportunities for able-bodied inmates of appropriate security status. <br /> <br />NOW, THEREFORE, THE PARTIES COVENANT AND AGREE AS FOLLOWS: <br /> <br />1. Premises. <br /> <br />q <br /> <br /> <br />County hereby leases to HCI, upon the terms and conditions herein set forth, that <br />portion of the Complex located at 34 Rainbow Drive, Hilo, Hawai'i, identified as <br />bein a portion of Tax Map Key: (3)2-3-026:008, known as "Ward B" first and third <br />oorw described in Exhibit "A" attached hereto (hereinafter referred to as the <br />. ses"). <br /> <br />(a) <br /> <br />-2- <br />