CACLE DIVISIONF—I LiNT H CANDFLCY{I~ March 15, 2012

& ING 2II~ MAR IS p Lç 33LAWYERS

ALAW CORPORATION VIA HAND-DEUVERY

Ms. Jo Ann Uchida

OAKU OFFICE Acting Deputy Director1001 Bishop Street Department of Commerce and Consumer Affairs

Suite 1800 King Kalakaua BuildingHonoluW, HI 96813 335 Merchant Street Room 101Phone: (808) 524-1800Fax:(808)524-4591 Honolulu, Hawai’i 96813

BIG ISLAND OFFICE Re: Response to DCCA Ietter dated March 7, 20126s-1241:omaikai ~ Concerning Application of ‘Olelo Community Media

Kamuela, HI 96743Phone:(808)885-6762 Dear Ms. Uchida:Fax: (808) 885-6011

MAUI OFFICE - As you know, this firm represents ‘Olelo Community Media2200Main Street (“Olelo”). This follows up our letter of March 8, 2012 and addresses your

Suite 521 March 7,2012 letter (received March 8,2012) concerning information andWailuku, HI 96793 documents requested further to ‘Olelo’s Application to Provide PEG AccessPhone: (sos) 244-1160 ,,

Fax: (808) 442-0794 Services for the people of 0 ahu ( Application ).

www.ahfi.com Thank you for meeting with us on March 14 to clarify that ‘Olelo isnot required to respond to document requests 4 and 8, and is not required

Terry E.Thomason to disclose any documents or information maintained as confidentialE-mail; pursuant to the Stipulation and Order Governing Confidentiality offlhornason@ahfi.com Documents, filed on October 7, 2011 (Stipulation”) in the capital funding

arbitration. We appreciate the extension to March 15, 2012 for theCorianne W. LauE-mail: responses.cLai’@ahficom

Without prejudice to its stated objections, and without concedingJessica Wong Lavarias ~— . .E-mail: the documents are relevant to Olelo’s Application, Olelo is willing toiwL@ahfi.com disclose documents to DCCA in response to your March 7 letter and in

connection with ‘Olelo’s Application. Some of the documents containconfidential commercial and financial information or information that isotherwise confidential and proprietary. Although ‘Olelo will disclose theconfidential documents to DCCA for purposes of the Application, thosedocuments must be withheld from public review, including review by TimeWarner Entertainment Company, L.P. dba Oceanic Time Warner Cable(“TWE”).

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Ms. Jo Ann UchidaMarch 15, 2012Page 2

‘Olelo is entitled to maintain the confidentiality of the information contained in thedocuments because its disclosure would frustrate legitimate government functions underHawaii Revised Statutes § 92F-13(3). The reasons for confidentiality are set forth in a letter tothe Office of Information Practices, a copy of which has been furnished to DCCA. As ‘OIeIo isrequesting a formal opinion from OIP to ensure the documents remain confidential, ‘Olelorequests DCCA’s assurance that the documents will not be disclosed to TWE or any member ofthe public, unless and until the issuance of an opinion from OlP states that disclosure isrequired.

Olelo intends to cooperate fully with DCCA as the agency charged with determiningwhether ‘Olelo should be the designated PEG Access provider pursuant to “DCCA’s Guidelinesto Designate PEG Access Organizations Pursuant to Act 19 (SLH 2011)r’Guidelines”). Thedesignation should not be delegated to TWE or any other entity that may have its own agendaat odds with the public interest, such as to minimize funding for PEG Access activities. As DCCAis well-equipped to determine ‘OleIo’s “financial capability” to provide the PEG access servicesit requires, DCCA should ensure ‘Olelo’s confidential financial documents are protected frompublic disclosure under HRS 92F-13 and not used for purposes other than the designation.

‘Olelo also notes that the intervention of TWE is not allowed to unduly delay the publichearing that is scheduled in connection with the designation.’ Therefore, ‘Olelo’s managementwill cooperate with DCCA to expedite any furnishing of information or documentation itrequires to accomplish its review.

Please note that documents responsive to TWE’s document requests No. 9 are notclaimed to be confidential. As such, Olelo is producing all responsive documents under itscustody and control that can be located within the available time frame and will supplement asneeded.

~ a timely request, and at the discretion of DCCA, any interested person may bepermitted to intervene in the public hearing, if that person has a substantial interest in theoutcome of the designation of the applicant as a PEG access organization; provided that nointervention shall be permitted if the intervention unduly delays the public hearing or hasbeen filed to harass, hinder, or prejudicc~ the rights of an applicant as determined solely byDCCA. A person that is permitted to intervene shall only be allowed to intervene during thepublic hearing. The permitted intervening party shall be allowed to submit written questionsabout an application to the applicant prior to the public hearing, and reasonably requestsupporting and clarifying documentation on an application from the applicant.” DCCA’sGuidelines to Designate PEG Access Organizations Pursuant to Act 19 (SLH 2011) at p.3(emphasis added).

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Ms. Jo Ann UchidaMarch 15, 2012Page 3

In addition DCCA has revised document request No. 10 to require a summary of ‘Olelo’sefforts to obtain funding other than that derived from TWE or the State. That summary is notconfidential and can be publically disclosed.

‘Olelo responds to TWE’s requests for information Nos. 15 and 16 as follows:

‘Olelo holds title to the Mapunapuna building on behalf of DCCA pursuant to paragraphN of its 1998 agreement with DCCA. Under paragraph N, property purchased after December1998 is subject to relinquishment to DCCA without payment to ‘Olelo. Properties purchasedprior to December 1998 are subject to appraisal and allocation of value to ‘Olelo. There is anongoing dispute as to which category the building belongs.

Under either category, the State has significant and/or undefined property interests inthe building and all building improvement expenditures have been and will be made pursuantto ‘Olelo’s obligations to protect and preserve the State’s property interest. See directive ofthen - DCCA Director Mark Recktenwald in his letter dated January 23, 2007. Therefore, allbuilding related improvements have been at the direction and for the benefit of DCCA.

Please contact us if you have any questions.

Very truly yours,

Terry E. fhomasonCorianne W. LauJessica Wong Lavarias

TET/CWL/JWL:clm

cc: Laureen Wong, Esq.Brian Kang, Esq.

817751-4/ 3061-15

c-c‘Olelo’s Response to DCCA’s request for additional information and documents related to J0 Ann Uchida’s letter dated March 7, 2012

March 15, 2012

DCCA QuestionlRequest# I TWE’s Original QuestionlRequest# Exhibit(s)1. Information regarding 13. Please identify all tenants that ‘Olelo currently leases space to in its building • A‘Olelo’s tenants (Request for at 1122 Mapunapuna Street, Honolulu, Hawaii 96819. For each tenant that ‘Olelo • BInformation No. 13) leases space to within its building, please identify the location that each tenant • c

occupies, the square footage of the leased space, and the lease terms (including, • Dbut not limited to, the lease rate and term of the lease).

1. Information regarding 14. Please state the amount of rental income from each tenant that ‘Olelo has • Rental Income by Tenant‘Olelo’s tenants (Request for received for each of the years 2005 to 201 1.Information No. 14)3. Documents relating to 6. The October 2010 financial projection for operating (for fiscal years ending • 6a‘OIelo’s budgets and finances December31, 2011 through 2015) and capital expenses (for fiscal years ending • 6b(Request for Documents December31, 2011 through 2018) referred to on P. 23 of the 2011 ‘Olelo Audit.No. 6)3. Documents relating to 3. All ‘Olelo operating budgets (in the most detailed form kept by ‘Olelo in its files • ‘Olelo’s operating‘Olelo’s budgets and finances and including, but not limited to, the “very detailed annual operating budgets” budgets from 2005 to(Request for Documents No. 3) referred to on P.23 of the 2011 ‘DIelo Audit) for each of the years 2005 to 2017. 20113. Documents relating to 5. All budget to actual results reports for each of the years 2005 to 2011, • ‘Olelo’s budget‘Olelo’s budgets and finances including, but not limited to, the “budget to actual results [reports] for fiscal years comparisons from 2005(Request for Documents No. 5) 2006 through 2010” referred to on p. 23 of the 2011 ‘Olelo Audit. to 20113. Documents relating to 10. All documents from 2005 to the present that relate or refer to any plans or • Summary of Request for‘Olelo’s budgets and finances efforts by ‘Olelo to raise finds from sources other than Oceanic or the State of Documents No. 10(Request for Documents Hawaii.No.10) -

4. Documents relating to 9. All ‘OIelo records (including, but not limited to surveys) describing or • Needs Assessment forviewership of ‘Olelo’s channels documenting viewership of ‘Olelo’s channels from 2005 to 2010. ‘Olelo Communityfrom 2005 to 2010 (Request for Television (ExecutiveDocuments No. 9) Summary, March 24,

2006• Summary Analysis of

Activities and ResearchRegarding ‘Olelo

~ Community Television• Ward Research Tracking

Viewership of And

Interest In CommunityAccess Channels: WAVEVI, January 2006Tracking Viewership andInterest in CommunityAccess Channels:Addition of FOCUS 49,November 2006

• Awareness andPerceived Value of ‘OleloCommunity TelevisionProgramming, May 2011

• LEASE

THIS LEASE is made this 1’ day of -A~$J6.t. , 1995, by andbetween tOLELO: THE CORPORATION FOR COMMUNITY TELEVISION,a Hawaii corporation, whose address is 1122 Mapunapuna, Suite 100, Honolulu,

1.1 Description of Premises. Landlord, for and in consideration ofthe rents, covenants and agreements reserved and contained in this Lease, and onthe part of Tenant to be paid, observed and performed, does demise and lease toTenant, and Tenant does lease from Landlord approximately 16,59B square feet ofwarehouse space located in the building (the “Building”) located on the real propertydescribed in Exhibit “A”, attached hereto and made a part hereof (the “RealProperty”), hereinafter called the “Premises”, and which configuration and location onthe Real Property is depicted by cross-hatching on Exhibit “B”.

1.2 Parking. Tenant will be entitled to use twenty-one (21) parkingJ spaces during the term of this Lease subject to rules and regulations promulgated by

Landlord, and any amendments or additions thereto. The parking charge is initiallyset at $30.00 per month per parking space, and Landlord reserves the right to adjustthe parking charges in Landlord’s sole discretion at any time after 30 days’ priorwritten notice, but in no event more than one hundred five percent (105%) of theparking charges in effect in the immediately prior year. The parking charge shall bedue and payable in advance at the same time and place as rent. The parkingspaces shall be assigned by Landlord from time to time, however, Landlord shallexercise good faith reasonable efforts to maintain the contiguity of the Tenant’sparking spaces.

1.3 Tenant Accepts the Premises “As Is”. ‘Where Is”. Tenantaccepts the Premises in its condition existing as of the Lease commencement date inan “AS IS” “WHERE IS” condition, without any warranties or representations,expressed or implied by Landlord as to the condition thereof, except for (I) expresswarranties set forth in this Lease, and (ii) the improvements Landlord has agreed toconstruct for Tenant as described in Section 9.7 below.

1.4 Possession. Unless otherwise expressly agreed upon by theLandlord and Tenant, Landlord shall deliver to Tenant and Tenant shall have the

1. Premises.

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right to possess and occupy the Premises on the commencement date, and the rightto such possession and occupancy shall continue to the expiration date unless anduntil Tenant shall be in default of any of the terms, covenants and/or conditionscontained in this Lease and on the part of Tenant to be observed and performed.

2. Term. The term of this Lease shall be for a period of sixty-four (64)months, commencing on August 1, 1995, and terminating on November 30, 2000,unless sooner terminated as provided in this Lease, or extended pursuant toTenant’s option to extend the term of this Lease as set forth below.

2.1 Option to Extend Term. Tenant is given the option to extend theterm of this Lease on all the provisions contained in this Lease, except for rent, for aperiod of sixty (60) months (“Extended Term”) following expiration of the initial term(the “Option”). The Option to extend shall be exercised, if at all, by giving notice ofexercise of the option (“Exercise Notice”) to Landlord at least one hundred eighty(180) days but not more than two hundred forty (240) days before the expiration ofthe initial term. Once the Option is exercised, Tenant shall have no right to withdrawand/or rescind the exercise of said Option. Notwithstanding the foregoing, if anuncured event of default has occurred under this Lease (subject, however to normalcure periods as allowed by this Lease), prior to the delivery of the Exercise Notice,the Option shall be void and of no force or effect. Further, if an uncured event ofdefault exists (subject, however to normal cure periods as allowed by this Lease)subsequent to the delivery of the Exercise Notice but prior to the commencement ofthe Extended Term, Landlord may accept or reject such Exercise Notice in its soleand absolute discretion. Tenant acknowledges and agrees that the Option ispersonal to Tenant, and may not be assigned or transferred, with or without itsinterest in this Lease, to any party other than Tenant’s parent company or sisterentities operating under the umbrella of Tenant’s parent company.

2.2 Rent Set by Arbitration. If Tenant exercises its Option to extendthe term of this Lease for the Extended Term then the rent for the Extended Termshall be adjusted to equal fair market rental for the Premises as of the date of thecommencement of such Extended Term, pursuant to the procedures hereinafter setforth. As used herein, the term “fair market rental” means the rent rate per squarefoot being charged for other comparable warehouse space in the Mapunapuna areaof Honolulu, taking into consideration the location of the Premises in relation to suchother warehouse space, the rental market in such other locations compared to therental market for the Premises, improvements or allowances provided, or to beprovided, rental abatements, lease take-overs!assumptions, other forms or rentalconcessions, proposed terms of leases in light of the duration of the Extended Term,the extent of services and utilities provided, or to be provided, use limitations orrestrictions, the time a particular lease or rental under consideration became or is to

7824.4/3051-1July31, 1995 2

become effective and any other relevant terms or conditions; provided, however, thatin no event shall fair market rental be less than one hundred ten percent (110%) ofthe rent in effect immediately prior to the commencement of the Extended Term.

2.2.1 Landlord Notice of Fair Market Rental. Fair market rentalas of the commencement of the Extended Term shall be determined by Landlord1with written notice thereof given to Tenant not later than two hundred forty (240) daysprior to the date of commencement of the Extended Term, which information Tenantshall use in good faith in determining whether to exercise its Option. In the eventTenant disagrees with the fair market rental determined by Landlord, Tenant shallhave the right to arbitrate the question pursuant to the provisions set forth below.Failure on the part of Tenant to demand arbitration within thirty (30) days after receiptof notice from Landlord of Landlord’s determination of fair market rental shall bindTenant to the fair market rental as determined by Landlord. Should Tenant elect toarbitrate, and if the arbitration is not concluded before the commencement of theExtended Term, Tenant shall pay rent to Landlord in an amount equal to the fairmarket rental set forth in Landlord’s statement, until the fair market rental isdetermined. If the fair market rental as determined by arbitration differs fromLandlord’s figure, then any adjustment required to correct the amount previously paidby Tenant shall be made by payment by the appropriate party within thirty (30) daysafter such determination of fair market rental has been concluded.

j 2.2.2 Arbitration of Fair Market Rental. In the event Tenantdisputes the amount determined by Landlord as fair market rental, Tenant mayrequire the Landlord to submit the dispute to arbitration. The judgment or the awardrendered in any such arbitration may be entered in any court having jurisdiction, andshall be final and binding between the parties, absent fraud or gross error. Thearbitration shall be conducted and determined in the City of Honolulu, Hawaii, inaccordance with the then prevailing rules of the American Arbitration Association, orits successors, for commercial disputes, except to the extent that the proceduresmandated by such rules shall be modified as follows.

2.2.3 Tenant Demand. Tenant shall make demand forarbitration in writing within not more than thirty (30) days after service of Landlord’sdetermination of fair market rental under Section 2.2.1. Tenant’s notice shall specifythe name and address of the person to act as the arbitrator on its behalf. If Tenantfails to make a timely and proper demand for such arbitration (including nominationof his arbitrator), then Landlord’s determination shall be final and binding on theparties. If Tenant initiates arbitration, Landlord shall give notice to Tenant withinthirty (30) days after receipt of Tenant’s notice, specifying the name and address ofthe person designated by Landlord to act as arbitrator on its behalf. If Landlord failsto notify Tenant of the appointment of its arbitrator within or by the time above

78244/3061.1July31, 1995 3

specified, then the arbitrator appointed by Tenant shall be the sole arbitrator todetermine the issue.

2.2.4 Procedure for Arbitration. In the event that the two (2)arbitrators are chosen pursuant to Section 2.2.3 above, such arbitrators shall meetwithin ten (10) business days after the second arbitrator is appointed and, if withinten (10) business days after such meeting the two arbitrators are unable to agreeupon a determination of fair market rental, they, themselves, shall appoint a thirdarbitrator. In the event they are unable to agree upon such appointment within five(5) business days after expiration of such ten (10) day period, the third arbitratorshall be selected by the parties themselves, if they can agree thereon, within afurther period often (10) business days. If the parties do not so agree, then eitherparty, on behalf of both, may request appointment of the third (3rd) arbitrator by theAmerican Arbitration Association, Honolulu office, and the other party shall not raiseany objection as to such Association’s power and jurisdiction to entertain theapplication and make the appointment

2.2.5 Resolution Where No Prior Agreement. Where an issuecannot be resolved by agreement between the two (2) arbitrators selected byLandlord and Tenant, or settlement between the parties during the course ofarbitration, the issue shall be resolved by the three (3) arbitrators in accordance withthe following procedure. The arbitrator selected by each of the parties shall state inwriting his determination of the fair market rental, supported by the reasons therefor,with counterpart copies to each party. The arbitrators shall arrange for asimultaneous exchange of such proposed resolutions. The third (3rd) arbitrator shallselect which of the two (2) proposed resolutions most closely approximates his owndetermination of fair market rental; and the third (3rd) arbitrator shall have no right topropose a middle ground or any modification of either of the two (2) proposedresolutions. The resolution he chooses as most closely approximating his owndetermination shall constitute the decision of the arbitrators and be final and bindingupon the parties, absent fraud or gross error. The arbitrators shall decide the issuewithin ten (10) days after the appointment of the third arbitrator in the manner hereinspecified.

2.2.6 Replacement of Arbitrator. In the event of a failure,refusal or inability of an arbitrator to act, his successor shall be appointed in thesame manner as such arbitrator was first chosen hereunder. Any decision in whichthe arbitrator appointed by Tenant and the arbitrator appointed by the Landlordconcur shalt be binding and conclusive upon the parties, absent fraud or gross error.Each party shall pay the fee and expenses of its respective arbitrator and bothparties shall share the fee and expenses of the third (3rd) arbitrator (including anywitnesses or experts consulted by the third arbitrator), if any; and the attorneys’ fees

7824-413061-1July31, 1995 4

A,

and expenses of counsel for the respective parties and of witnesses shall be paid bythe respective party engaging such counsel or calling such witnesses.

2.2.7 Evidence and Consultation: Qualifications of Arbitrators.The arbitrators shall have the right to consult experts and competent authorities withfactual information or evidence pertaining to a determination of fair market rental, butany such consultation shall be made in the presence of both parties (or theirrepresentatives) with full right on their part to cross-examine. The arbitrators shallrender their decision and award in writing with counterpart copies to each party. Thearbitrators shall have no power to modify the provisions of this Lease. Eacharbitrator designated or selected hereunder shall be qualified as a real estateappraiser familiar with rental of facilities similar to the Premises and of the rentalmarket for such facilities and the Premises, who would qualify as an expert witnessover objection to give opinion testimony addressed to the issue in a court ofcompetent jurisdiction.

3. Rent. For each and every month during the term of this Lease,commencing on the first day of the month following the commencement date, Tenantshall pay to Landlord on or before the first day of that month, at Landlord’s office orat any other place designated by Landlord, without deduction or offset, prior notice ordemand, in lawful money of the United States of America, the following rental for therespective periods hereinafter set forth as follows:

August 1, 1995 through November 30, 1995 — rent shall be abated;December 1, 1995 through November 30, 1998 —$14,938.20 per month;December 1, 1998 through November 30, 2000 --$16,432.02 per month.

Partial months at the commencement and termination of this Lease, asextended, shall be prorated on the basis of a thirty (30) day month. Tenant shall payall other charges required by this Lease during August 1, 1995 throughNovember 30, 1995, including but not limited to utilities, and its Pro Rata Share ofreal property taxes and Operating Costs. Landlord and Tenant agree that it Tenantincurs costs to install check meters for the Premises to monitor Tenant’s electricalusage within the Premises as a part of its initial improvements pursuant to Section9.6, Tenant shall receive an equivalent rent credit up to $6,000 against the rent dueand payable December 1, 1995.

4. Real Prooertv and Other Taxes.

4.1 Taxes and Assessments. Tenant shall pay to Landlord, withinten (10) days after receipt of billing, its Pro Rata Share of all real property taxesstated in the tax bill for the Real Property in which the Premises are included,

7824-4i3051-1July31, 1995 5

including any general or special assessments which may be levied upon or againstthe Real Property by any governmental authority, or which may be evidenced byimprovement or other bonds. “Pro Rata Share” shall refer to a fraction, thenumerator of which is the gross square footage of the Premises (excluding anymezzanine area within the Premises) and the denominator of which is the grosssquare footage of the improvements on the Real Property. Notwithstanding thepreceding provisions of this Section 4.1, Tenant’s Pro Rata Share of taxes may becalculated differently to yield a higher percentage share for Tenant in the event othertenants in the Building are exempt from real property taxes andlor assessments. Insuch case, the ratio used to calculate Tenant’s Pro Rata Share of the real propertytaxes and/or assessments shall have as its denominator the gross square footage oftenants who are not exempt from real property taxes and!or assessments.Notwithstanding the preceding provisions of this Section 4.17 Tenant’s Pro RataShare of special assessments shall be that fraction allocable to the calendar year inquestion calculated by amortizing the cost over the reasonably useful life of suchimprovement, as determined by Landlord, with interest on the unamortized balanceat the rate charged by the governmental authority imposing such specialassessment.

4.2 General Excise Tax. Tenant shall pay to Landlord as additionalrent, together with each payment of rent or any other payment required hereunderwhich is subject to the State of Hawaii general excise tax law, or as it may beamended, and all other similar taxes now or hereafter imposed on Landlord on therent and other payments in the nature of a gross receipts tax, sales tax, privilege taxor the like (excluding Federal or State net income taxes or the like) whether imposedby the United States, State of Hawaii, any city or county government, or any othergovernmental entity or authority, an amount which, when added to such rent or otherpayment, shall yield to Landlord after deduction of all such tax payable by Landlordwith respect to all such payments, a net income equal to that which Landlord wouldhave realized for such payment had no such tax been imposed. The present tax socalculated is 4.167%.

4.3 Conveyance Tax. Tenant shall reimburse Landlord within five(5) days of Landlord’s demand, for all conveyance taxes, if any, applicable to thisLease.

5. Peaceful Enjoyment. Upon payment by Tenant of the rent to Landlordand upon observance and performance of all the terms, covenants, conditions andagreements contained in this Lease and on the part of Tenant to be observed orperformed, Tenant shall peaceably hold and enjoy the Premises during the term ofthis Lease without hindrance or interruption by Landlord or anyone lawfully or

7824-413061.1July31, 1995 6

equitably claiming by, through or under Landlord, except as may be expresslyprovided in this Lease.

6. Utilities.

6.1 Payment by Tenant. Tenant, from the time it first enters thePremises for the purpose of setting fixtures or other work, or from thecommencement of this Lease, whichever date shall first occur, and throughout theterm of this Lease, shall pay all charges, including connection fees, for water, heat,sewer, power, telephone services and any other utility supplied to or consumed in oron the Premises. Tenant shall place all refuse, garbage or trash in containers andlocations approved by Landlord, including sorting this material into separatecomponents as may be required by any governmental authority, and shall not allowany refuse, garbage or trash to accumulate outside of the Premises except on theday of scheduled trash pick-up services, and then only in areas designated as suchaccording to the rules established for that purpose by Landlord. Landlord herebyconsents to Tenant arranging for a garbage dumpster to be placed in the yard areaadjacent to the Premises as depicted on Exhibit “B” (the “Yard Area”), for Tenant’sexclusive use and at Tenant’s sole cost and expense. Landlord shall not beresponsible or liable for any interruption in utility services, nor shall such interruptionaffect the continuation or validity of this Lease.

J 6.2 Separate Meters. Landlord reserves the right to install or requireTenant to install, at Tenant’s expense, separate meters for electrical power servicingthe Premises. Tenant shall make payments, when due, directly to the utility involvedfor all separately metered utilities servicing the Premises. Landlord reserves the rightto install or require Tenant to install, at Tenant’s expense, check meters to monitor allelectrical usage within the Premises. Tenant shall make payments directly toLandlord for power usage monitored by check meters rather than separate meters.

6.3 Joint Meters. If any utility èervices are not separately metered toTenant, Tenant shall pay a proportion to be determined by Landlord of all chargesjointly metered with other premises or occupants of the Building. All payments toLandlord in respect thereof shall be due within ten (10) days after receipt of thebilling by Tenant.

7. Operation of Tenant’s Business.

7.1 Use of Premises. Tenant agrees that the Premises shall beused for receipt, storage and distribution of Tenant’s product line, other relatedproducts and related office use (but only in relationship to the warehouse activities),and for no other use. Tenant may also use the Premises for (i) receipt, storage and

7824-4/3061-1July31. 1995 7

S

distribution of product of Tenant’s affiliated companies similar to Tenant’s productline, and (ii) employee and private sales so long as such sales comply with allapplicable laws, and does not interfere with the use or occupancy by Landlord orother tenants of the building. Tenant agrees to provide Landlord uponcommencement of this Lease, and from time to time, with an accurate list of all ofTenant’s affiliated companies using the Premises (this list shall be kept confidentialby the Landlord). Tenant agrees that the Premises shall be used and occupied in acareful, safe and proper manner, that no trade or occupation which is noxious orwhich would result in any increase in the rate charged for insurance on the Premisesshall be permitted therein and that no nuisance nor waste shall be committed orpermitted upon, or any damage done to, the Premises. To the extent that Tenant’sspecific use of the Premises results in an increase in the rate charged for insuranceon the Premises or Building, Tenant agrees that such increase shall be the sole costand expense of Tenant.

7.2 Annoying or Injurious Conduct. No auction, fire or bankruptcysales may be conducted in the Premises without the prior written consent ofLandlord.

7.3 Rubbish. Tenant shall keep the Premises and loading dock in aclean, neat and sanitary condition and free from refuse, trash and dirt at all times.Tenant shall remove all refuse, trash or dirt caused by Tenant to be placed onadjoining sidewalks or walkways and loading areas.

7.4 No Waste or Strip. Tenant shall not make or suffer any strip orwaste or any unlawful, improper or offensive use of the Premises or any part thereofnor overload the floors or any other parts of the Building. Further, Tenant shall notcarry on, do or suffer to be carried on or done upon the Premises any acts, trade,practices or business which may damage the Building or the Premises or be orbecome a nuisance or menace to persons or property, and shall not do, permit orsuffer to be carried on any activity, trade, practices or take or store upon thePremises objects or property which shall increase the rate of premiums for tireinsurance upon the Building, the Premises or its contents.

7.5 Limitation on Tyoe of Business. Tenant shall not permit anybusiness to be operated in or from the Premises by any concessionaire, licensee orsubtenant. Notwithstanding the foregoing, the Premises may be used by Tenant orTenant’s affiliated companies strictly in compliance with Section 7.1 hereinabove.

7.6 Improvements Required by Law. For all capital improvements tothe Premises required by law or any governmental authority to be completed duringthe term of this Lease, Tenant shall make, build, maintain and repair such

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improvements upon or adjoining or in connection with or for the use of the Premisesor any part thereof. Tenant shall maintain and/or repair all improvements required bylaw or any governmental authority to be maintained or repaired upon or adjoining orin connection with or for the use of the Premises or any part thereof.Notwithstanding the preceding provisions of this Section 7.6, Tenant’s cost of allcapital improvements to the Premises required by law shall be limited to theamortized annual cost over the reasonably useful life of such improvement, asdetermined by Landlord, with interest on the unamortized balance at the lower oftwelve percent (12%) per annum or the rate charged by the governmental authorityimposing such capital improvement requirement, for the term of this Lease.

7.7 Observance of Laws. Tenant shall, at Tenant’s sole cost andexpense, at all times during the term keep the Premises in good order and a strictlysanitary condition and observe and comply with all laws, ordinances1 rules andregulations now or hereafter made by any governmental authority for the time beingapplicable to the Premises or any improvement thereon or use thereof. If Landlordreceives oral or written notice from a municipal, county, state or federal authority ofinfractions of law or a failure to meet any requirements of such an authority andinforms Tenant in writing of same, or Tenant receives notice directly from suchmunicipal, county, state or federal authority of infractions of law or a failure to meetany requirements of such an authority, and Tenant refuses or neglects to take propercorrective action, Landlord may, in its sole discretion and upon reasonable notice,enter the Premises and take any action necessary to eliminate the infractions or toachieve compliance with such requirements on Tenants behalf, without liability toTenant for any loss or damage which may result to Tenant’s business by reasonthereof. Upon Landlord’s presentation to Tenant of the bill for the work (including,without limitation, the materials used in performing it) done by Landlord in order toeliminate such infractions or to achieve such compliance, Tenant shall pay toLandlord, as additional rent, the costs incurred by Landlord in performing such work.The bill shall include a markup of fifteen percent (15%) on such costs to coverLandlord’s overhead, plus general excise tax on the markup. Notwithstanding theforegoing, so long as Tenant has commenced the cure of such infractions of law ordeficiencies within ten (10) days of such notice, and diligently pursues cure of suchinfractions of law or deficiencies, Landlord may not take any action to achievecompliance with such requirements on Tenant’s behalf, and Tenant shall not bedeemed in default for so long as it is diligently pursuing compliance with suchrequirements.

7.8 Yard Area of the Premises. Landlord, at Landlord’s soleexpense, shall install a pad-lock locking chain-link type swinging gate with hardenedsteel security lock at the entrance to the Yard Area. Landlord shall provide Tenantwith three (3) keys for said lock and shall retain a key for Landlord’s access to only

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the parking spaces in the Yard Area in excess of Tenant’s parking spaces. Landlordand Tenant agree that the gate shall be left unlocked and opened Monday throughFriday from 7:00 AM to 11:00 PM only, and that Landlord shall be responsible to lockthe gate at or before 11:00 PM. At all other times the gate shall be locked exceptthat Tenant can lock and unlock the gate as needed. Landlord and Tenant mayduplicate keys and distributed them internally as each party shall deem necessaryand prudent, and both parties agree to restrict the number of keys and theindividuals to whom keys are issued in a sincere effort to protect the legitimatesecurity interests of both Landlord and Tenant. Tenant shall have exclusive use ofthe loading dock located in the Yard Area, and Landlord guarantees Tenant’s accessto the loading dock at all times, subject however to force majeure events.Notwithstanding the foregoing, Tenant acknowledges that the Yard Area is a part ofthe Common Area, and subject to non-exclusive use by Tenant, use by other tenantsof the Building, and subject to management and control by Landlord with otherCommon Areas.

7.9 No Liens or Encumbrances. Tenant shall not commit nor sufferany act or neglect whereby the Premises or Real Property, or the interest of Landlordin the Premises or Real Property shall, at any time during the term, become subjectto any attachment, judgment, lien, charge or encumbrance whatsoever, and shallindemnify and hold harmless Landlord against all such attachments, judgments,liens, charges and encumbrances on the Premises or Real Property, or the interestof Landlord therein and from all costs and expenses arising or resulting therefrom,including a reasonable attorney’s fee, it being expressly understood and agreed thatTenant shall have no authority, express or implied, to create or suffer to be imposedany lien, charge or encumbrance upon the Premises or Real Property or upon theinterest of Landlord therein. Tenant at its sole cost shall have the right, at any time,to contest in good faith any attachment, judgment, lien, charge or encumbrancewhatsoever (the “Lien”) by a third party, the assertion of which would constitute abreach of this Section. If Tenant contests such Lien, the failure on Tenant’s part topay the Lien shall not constitute a default as long as Tenant complies with theprovisions of this Section. Landlord shall not be required to join in any proceeding orcontest brought by Tenant unless the provisions of any law require that theproceeding or contest be brought by or in the name of Landlord or any owner of thePremises or Real Property. In that case, Landlord shall join in the proceeding orcontest or permit it to be brought in Landlord’s name as long as Landlord is notrequired to bear any cost. Tenant, on final determination of the proceeding orcontest, shall immediately pay or discharge any decision or judgment rendered,together with all costs, charges, interest and penalties incidental to the decision orjudgment. Notwithstanding anything contained herein to the contrary, Tenant agreesto pay all costs and expenses of Landlord, including reasonable attorneys fees, ifLandlord in its reasonable judgment, determines that it must participate in any

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proceeding or contest to protect against a result which would be prejudicial ordetrimental to Landlord.

7.10 Inspection of Premises. Tenant shall permit Landlord andLandlord’s agents at all reasonable times during the term to enter the Premises toexamine the state of repair and condition thereof.

7.11 Prohibited Uses. Tenant shall not use the Premises for thepurpose of storing junk, scrap or other offensive materials or hazardous materials (ashereafter defined); shall not make or suffer any strip or waste or unlawful, improper,offensive or hazardous use of the Premises; shall not commit or permit thecommission of any nuisance on the Premises; shall not sell, store or permit to bekept, used or sold in or about the Premises any article which may be prohibited byany policy or policies of any insurance applicable to the Premises; and shall not useor permit the Premises to be used in any manner or for any purpose which willincrease the then existing rate of insurance or cause the cancellation of anyinsurance coverage, and any increase in premiums, surcharges or damagesresulting from such prohibited or unpermitted use shall be paid by Tenant toLandlord.

7.12 Hazardous Materials.

7.12.1 Hazardous Materials Defined. As used herein, the term‘Hazardous Materials” shall mean (i) any hazardous or toxic wastes, materials orsubstances” and any other pollutants or contaminants, which are or may becomeregulated by any applicable local, state or federal laws, including but not limited to,33 U.S.C. Section 1251 gtg~g,, 42 U.S.C. Section 6901~ 42 U.S.C. Section7401 ~ ~., 42 U.S.C. Section 9601 ~ ~q,, and the Hawaii Environmental QualityControls, Chapter 342, Hawaii Revised Statutes, or any successor(s) thereto(collectively “Environmental Laws”); (ii) petroleum; (iii) asbestos; (iv) polychlorinatedbiphenyls; and (v) radioactive materials.

7.12.2 Use. etc.. of Hazardous Materials. Tenant agrees thatduring the term of this Lease, there shall be no use, presence, disposal, storage,generation (collectively “Hazardous Use”), or intentional Release, as defined in 42U.S.C. Section 9601 (22), or any successor(s) thereto, or threatened Release ofHazardous Materials on, from or under the Premises except to the extent that, and inaccordance with such conditions as, Landlord may have previously approved inwriting. It is further agreed that Tenant shall be entitled to use and store only thoseHazardous Materials which are necessary for Tenant’s business, provided that suchusage and storage is in full compliance with Environmental Laws, and all judicial andadministrative decisions pertaining thereto. Tenant shall not be entitled to install any

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tanks under, on or about the Premises for the storage of Hazardous Materialswithout the express written consent of Landlord, which may be given or withheld inLandlord’s sole arbitrary judgment. For the purposes of this Section, the termsHazardous Use and Release shall include Hazardous Use(s) and/or Release(s) ofHazardous Materials on, from or under the Premises by any and all lessees,occupants, and/or users of the Premises (except Landlord), whether known orunknown to Tenant, and whether occurring and/or existing during or prior to thecommencement of the term of this Lease.

7.12.3 Hazardous Materials Report: When Required. Tenantshall submit to Landlord a written report with respect to Hazardous Materials(“Report”) in the form hereinafter prescribed, at any time, within ten (10) days afterwritten request by Landlord, if Landlord has a reasonable basis to suspectHazardous Materials on the Premises or a violation of this Section 7.12. The Reportshall contain, without limitation, the following information:

(1) Whether on the date of the Report and (if applicable) duringthe period since the last Report there has been any Hazardous Use on,from or under the Premises.

(2) If there was such Hazardous Use, the exact identity of theHazardous Materials, the dates upon which such materials werebrought upon the Premises, the dates upon which the HazardousMaterials were removed therefrom, and the quantity, location, use andpurpose thereof.

(3) If there was such Hazardous Use, any governmental permitsmaintained by Tenant with respect to such Hazardous Materials, theissuing agency, original date of issue, renewal dates (if any) andexpiration date. Copies of any such permits and applications thereforshall be attached.

(4) If there was such Hazardous Use, any governmentalreporting or inspection requirements with respect to such HazardousMaterials, the governmental agency to which reports are made and/orwhich conducts inspections, and the dates of all such reports and/orinspections (if applicable) since the last Report. Copies of any suchReports shall be attached.

(5) If there was such Hazardous Use, identification of anyoperation or business plan prepared for any government agency withrespect to Hazardous Use.

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(6) Any liability insurance carried by Tenant with respect toHazardous Materials, the insurer, policy number, date of issue,coverage amounts, and date of expiration. Copies of any such policiesor certificates of coverage shall be attached.

(7) Any notices of violation of Environmental Laws, written ororal, received by Tenant from any governmental agency since the lastReport, the date, name of agency, and description of violation. Copiesof any such written notices shall be attached.

(8) Such other pertinent information or documents as arerequested by Landlord in writing.

7.12.4 Release of Hazardous Materials: Notification andCleanup. If at any time during the term of this Lease Tenant knows or beheves thatany Release of any Hazardous Materials has come or will come to be located upon,about, or beneath the Premises, then Tenant shall, as soon as reasonably possible,either prior to the Release or following the discovery thereof by Tenant, give verbaland follow-up written notice of that condition to Landlord. Tenant covenants toinvestigate, clean up and otherwise remediate any Release of Hazardous Materialsat Tenant’s cost and expense; such investigation, clean up and remediation shall beperformed only after Tenant has obtained Landlord’s written consent, which shall not

J be unreasonably withheld; provided, however, that Tenant shall be entitled torespond immediately to an emergency without first obtaining Landlord’s writtenconsent. All clean up and remediation shall be done to the reasonable satisfaction ofLandlord.

7.12.5 Inspection and Testing by Landlord. Landlord shall havethe right at all times during the term of this Lease to (i) inspect the Premises, and to(ii) conduct tests and investigations to determine whether Tenant is in compliancewith the provisions of this Section 7.12. Except in case of emergency, Landlord shallgive reasonable notice to Tenant before conducting any inspections, tests, orinvestigations. The cost of all such inspections, tests and investigations shall beborne by Tenant, if Landlord has a reasonable basis in fact to suspect HazardousMaterials located in the Premises and reasonably believes such tests to benecessary. Neither any action nor inaction on the part of Landlord pursuant to thisSection 7.12 shall be deemed in any way to release Tenant from, or in any waymodify or alter, Tenant’s responsibilities, obligations, and/or liabilities incurredpursuant to this Section 7.12.

7,12.6 Indemnity. Tenant shall indemnify, defend and holdLandlord harmless from and against any and all claims, judgments, damages,

7824-413061-IJuly31, 1995 13

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penalties, fines, liabilities, losses, suits, administrative proceedings and costs(including, but not limited to, attorneys’ and consultants’ fees) arising from or relatedto Hazardous Use or Release of Hazardous Materials on or about the Premisescaused by the acts or omissions of any persons or entities whatsoever (exceptLandlord), whether related or unrelated to Tenant. Tenant’s obligations hereundershall survive the termination of this Lease. Notwithstanding anything containedherein to the contrary, Tenant’s indemnification of Landlord shall not extend to anyHazardous Materials existing on or about the Premises prior to Tenant’s entry ontothe Premises.

7.12.7 Landlord’s Representation and Indemnity. Landlordrepresents to Tenant, to the best of Landlord’s knowledge, that no enforcement,cleanup, remedial, removal, or other governmental or regulatory action have beeninstituted, completed or threatened pursuant to Environmental Laws affecting theReal Properly and no claims have been made or are threatened by any third partyagainst Landlord or the Real Property relating to damages or injury resulting fromHazardous Materials on the Real Property. Landlord assures Tenant that thePremises shall be delivered to Tenant on the commencement date of this Lease, freeof asbestos and/or any other Hazardous Materials, and Landlord will indemnify andhold Tenant harmless for all Hazardous Materials existing on the Real Property priorto Tenant’s occupancy of the Premises.

8, Maintenance and Repairs.

8.1 Obligations of Landlord and Tenant. Tenant shall, at its solecost and expense, keep and maintain the Premises and appurtenances, and everypart thereof in good and sanitary order, condition and repair, including all necessaryreplacements. Notwithstanding the foregoing, Landlord shall perform all necessaryrepairs, maintenance and replacement of the foundation, roof and structural parts ofthe Building. Landlord shall have full rights of access to the Premises, at all timesand from time to time, without liability to Tenant for disruption of its business oroperations, to perform all necessary repairs, maintenance and replacement of thefoundation, roof and structural parts of the Building, and/or any air conditioning,electrical, security, plumbing or other mechanical systems servicing parts of theBuilding and/or other tenant spaces within the Building. Tenant shall, at its sole costand expense, keep and maintain all utilities, fixtures and mechanical equipment usedby Tenant in good order, condition and repair. Tenant shall repair and make good alldefects required by the terms of this Lease to be repaired and made good by Tenantwithin thirty (30) days after the giving of written notice by Landlord or Landlord’sagents. If Tenant shall refuse or neglect to commence and complete such repairswithin the period, Landlord may make such repairs or cause the same to be made,without responsibility or liability to Tenant for any inconvenience, interruption, loss or

7824-413051-1Jufy3l,1995 14

) damage that may be caused to the property or business of Tenant by reason thereof,and Tenant shall forthwith pay to Landlord upon demand by the latter of the cost ofrepairs thereof with a markup of fifteen percent (15%) on the cost to cover Landlord’soverhead. Notwithstanding the foregoing, so long as Tenant has commenced thecure of such repairs within ten (10) days of Landlord’s written notice, and diligentlypursues cure of such repairs or deficiencies, Landlord may not take any action torepair on Tenant’s behalf, and Tenant shall not be deemed in default for so long as itis diligently pursuing the cure of such repairs.

8.2 Air Conditioning System. Tenant shall maintain, at its sole costand expense, the air conditioning system for the Premises. Tenant shall procure andmaintain in effect a service contract for regular maintenance, at least monthly, of theair conditioning system with a service company acceptable to Landlord, at Tenant’sexpense. Evidence of such a service contract will be provided to Landlord upon itsrequest. In the event the air conditioning package, or the component parts thereof,located on the roof of the Building servicing the Premises must be replaced duringthe term of the Lease, as determined by an independent air conditioning companyand verified by Landlord, Landlord shall, at Landlord’s sole cost and expense,replace such air conditioning package located on the roof of the Building, or itscomponent parts. Landlord’s agreement to replace such air conditioning package, orthe component parts thereof, is limited solely to the air conditioning package (andthe component parts thereof) located on the roof of the Building servicing the

) Premises. Landlord’s obligation to replace is also limited to such expenditures whichqualify as a “capital expenditure” under generally accepted accounting principles.The air-conditioning system for the Premises shall be delivered to Tenant in workingorder consistent with its age.

8.3 Definition of Common Areas. The term “Common Areas” asused in this Lease means all areas and facilities of the Real Property, outside thePremises that are provided and designated by Landlord or otherwise provided ordesignated from time to time for the general use and convenience of Tenant and ofother tenants having the common use of such areas, and their respective authorizedrepresentatives and invitees. Common Areas may include, without limitation, anydriveways, parking areas, public restrooms and other public areas, common trashareas and facilities, bicycle storage, stairways, elevators and landscaped areas,storage and maintenance areas and facilities for the operation of the building, andsidewalks and walkways (whether any of such sidewalks and walkways are within orwithout the boundaries of the Real Property). The Common Areas and thedesignations and location of Common Areas are tentative and Landlord reserves theright in its absolute discretion to make alterations, deletions and additions theretofrom time to time.

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8.4 Rights and Duties of Landlord. Landlord shall, in a manner itdeems proper in its opinion, maintain the Common Areas, establish and enforcereasonable rules and regulations concerning such areas, close any of the CommonAreas to whatever extent required in the opinion of Landlord’s counsel to prevent adedication of any of the Common Areas or the accrual of any rights of any person orof the public to the Common Areas, close temporarily any of the Common Areas formaintenance purposes, and make changes to the Common Areas, including, withoutlimitation, changes in the location of driveways, entrances, exits, vehicular parkingspaces, parking area, the designation of areas for the exclusive use of others, thedirection of the flow of traffic or construction of additional buildings thereupon.Tenant hereby acknowledges that Landlord is under no obligation to provide securityfor the Common Areas, but may do so at its option, in which event the cost thereofshall be included in Operating Costs (as defined in Section 8.6). Access, parkingand other Common Areas shall be subject to such rules and regulations anddeterminations and designations as Landlord may establish, or as may beestablished by said reciprocal or other easement agreements from time to time.

8.5 Payment by Tenant. Tenant’s Pro Rata Share, as such term isdefined in Section 4.1, is 37.3% at the inception of this Lease, subject to modificationas set forth herein. Tenant shall pay to Landlord as additional rent, its Pro RataShare of Operating Costs as hereinafter defined, together with general excise taxthereon within ten (10) days of receiving a bill therefor from Landlord, but no morefrequently than monthly. Landlord may bill Tenant estimated charges in accordancewith Section 8.7, Notwithstanding the preceding provisions of this Section 8.5,Tenant’s proportionate share as to certain expenses included in Common Area Costsmay be calculated differently to yield a higher percentage share for Tenant as tocertain expenses in the event other tenants are permitted to incur such expensesdirectly rather than have Landlord incur the expense in common for the Building. Insuch case, the ratio used to calculate Tenant’s proportionate share of the applicableexpense shall have as its denominator the gross square footage of tenants who havenot incurred such expense directly. In any case where Tenant, with Landlord’sconsent, incurs such expenses directly, Tenant’s proportionate share of CommonArea Costs will be calculated specially so that expenses of the same character whichare incurred by Landlord for the benefit of other tenants in the improvements shallnot be prorated to Tenant, Nothing herein shall imply that Landlord will permitTenant or any other tenant of the improvements to incur Common Areas Costs. Anysuch permission shall be in the sole discretion of Landlord, which Landlord maygrant, withhold or rescind in its arbitrary judgment.

8.6 Definition of Operating Costs. “Operating Costs” means altsums (including “Capital Costs” as hereinafter defined and to the extent statedherein) expended by Landlord, including payments for the management, supervision,

7824-4/3061.1July31, 1995 16

maintenance, repair, replacement and operation of the Common Areas andassessments and other charges assessed against the Real Property, as well asliability insurance premiums and any property insurance premiums for insurance onthe Building or the Common Areas, security services, plus Landlord’s actualadministrative costs but not in excess often percent (10%) of such sums. CapitalCosts are defined as those expenditures which do not normally recur more frequentlythan at five (5) year intervals in the normal course of operation and maintenance ofthe Real Property. Notwithstanding anything above which may be to the contrary,Common Area Costs shall also include a portion of all Capital Costs, representingany costs of capital improvements made by Landlord to the Building or Real Propertyfor the purpose of reducing recurring expenses or utility costs and from which Tenantcan expect a reasonable benefit, or that are required by governmental law,ordinance, regulation or mandate not applicable to the Building at the time of theoriginal construction. The portion of Capital Costs to be included each year inCommon Area Costs shall be that fraction allocable to the calendar year in questioncalculated by amortizing the cost over the reasonably useful life of suchimprovement, as determined by Landlord, with interest on the unamortized balanceat twelve percent (12%) per annum or such higher rate as may have been paid byLandlord for funds borrowed for the purpose of constructing such improvements, butin no event to exceed the highest rate permissible by law. Notwithstanding theforegoing, anything contained in this Lease to the contrary, Landlord agrees thatTenant shall have no liability for any Capital Costs which result from Landlord’s

j special use or occupancy of the Real Property. Landlord represents to Tenant thatat commencement of this Lease, Landlord has no plans for capital improvements tothe Building or Real Property.

8.7 Estimated Payments. Landlord shall have the right, at its option,to estimate Tenant’s Pro Rata Share of Operating Costs due in the future fromTenant and to collect from Tenant on a monthly or quarterly basis, as Landlord mayelect, the amount of Tenant’s estimated Pro Rata Share of such costs. Landlordshall provide Tenant with a reconciliation of Tenant’s account at least annually withinone hundred twenty (120) days after the lapse of each calendar year, and, if suchreconciliation shall indicate that Tenant’s account is insufficient to satisfy Tenant’sPro Rata Share of Operating Costs for the period estimated, Tenant shallimmediately pay to Landlord any deficiency. Any excess indicated by thereconciliation shall be credited to Tenant’s account to reduce the estimatedpayments for the next ensuing period. Landlord shall provide to Tenant uponTenant’s request, not more than once per calendar year, a breakdown of allOperating Expenses. Landlord shall, upon Tenant’s request, supply Tenant withcopies of any back-up material for any item of Operating Expenses disputed byTenant. Tenant shall reimburse Landlord for Landlord’s reasonable cost of copies.

7824 -4 1306 1~ 1J~l~31, i~es 17

9. Alterations. Improvements, Fixtures and Signs.

9.1 Alterations and Additions. Tenant shall not remodel, replace ormake any alterations, additions or improvements to the Premises without firstobtaining the written approval of Landlord. Tenant shall, prior to the commencementof such work, furnish to Landlord written evidence reasonably satisfactory toLandlord that Tenant has or is entitled to sufficient funding in a total sum not lessthan an amount equal to the total estimated cost of such construction, whichevidence, at Landlord’s reasonable election, shall include written evidence of aconstruction loan or other agreement providing for the orderly disbursement of fundsratably according to the work completed, less only a reasonable retainage,

9.2 Requirements for Alterations. Any alterations, additions orinstallations performed by Tenant (hereinafter collectively “alterations”) shall besubject to strict conformity with the following requirements:

(1) All alterations shall be at the sole cost and expense ofTenant;

(2) Prior to commencement of any work of alteration, Tenantshall submit detailed plans and specifications prepared by a licensed architectand if applicable, licensed engineer, including working drawings (hereinafterreferred to as “Plans”) of the proposed alterations, which shall be subject tothe reasonable consent of Landlord, and Tenant shall pay to Landlord,Landlord’s reasonable cost in connection with Landlord’s consent, includingthe fees of Landlord’s consultants. Within fourteen (14) calendar days afterreceipt thereof Landlord shall either approve the Plans or provide Tenant witha detailed explanation of the reasons for disapproval. If Landlord fails toapprove or disapprove the Plans within such fourteen (14) day period, thePlans shall be deemed approved;

(3) No alterations shall be commenced without Tenant havingpreviously obtained all appropriate permfts and approvals required by and ofgovernmental agencies;

(4) All alterations shall be performed in a skillful andworkmanlike manner by a licensed contractor, consistent with the bestpractices and standards of the construction industry, equal to or better thanbuilding standard, and pursued with diligence in accordance with the Planspreviously approved by Landlord and in full accord with all applicable laws andordinances, including, but not limited to the Americans with Disabilities Act,unless compliance is waived by the appropriate governmental authority. All

78244/3061-1July31, 1995 18

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material, equipment and articles incorporated in the alterations are to be new.and of recent manufacture and of the most suitable grade for the purposeintended;

(5) Tenant must obtain the prior written approval fromLandlord for Tenant’s contractor prior to commencement of the work.Tenant’s contractor shall maintain all of the insurance reasonably required byLandlord, including without limitation, commercial general liability, workers’compensation, builders’ risk insurance and course of construction insurance;

(6) The alterations must be performed in a manner such thatthey will not interfere with the quiet enjoyment of the other tenants in theBuilding.

9.3 Signs. Tenant shall not damage or dei~ce the Premises, shallnot drill holes in the Building or place thereon any signs1 placards, blinds or awnings,and shall not paint any portion of the Premises without first obtaining the writtenconsent and approval of Landlord.

9.4 Performance and Payment Bond. Upon Landlord’s request,Tenant shall, prior to the commencement of construction of any alterations, additions

or improvements costing in excess of Fifty Thousand Dollars ($50,000.00), furnish to

Landlord written evidence reasonably satisfactory to Landlord that Tenant has ondeposit in a financial institution or is entitled to sufficient funding in a total sum notless than an amount equal to the total estimated cost of such construction, whichevidence, at Landlord’s reasonable election, shall include written evidence of aconstruction loan or other agreement providing for the orderly disbursement of fundsratably according to the work completed, less only a reasonable retainage. If Tenantor its contractor has procured a performance and payment bond for construction ofany alterations, additions or improvements, such performance and payment bondshall name Landlord as an obligee. Upon compliance by Tenant with therequirements and upon obtaining the written consent of Landlord, Tenant maycommence the new construction. Without limiting other provisions contained hereinconcerning liability insurance, Tenant shall carry adequate insurance to cover liabilityfor personal injury or property damage during progress of the work.

9.5 Liens. Tenant shall keep the Premises and the Real Propertyfree from any liens arising out of any work performed, materials furnished orobligations incurred by Tenant. In the event a mechanic’s or other lien is filedagainst the Premises or the Real Property as a result of a claim arising throughTenant, Landlord may demand that Tenant furnish to Landlord and Ground Lessor(as hereinafter defined) and any lender providing funds to Landlord in connection

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with the Real Property, a surety bond satisfactory to Landlord in an amount equal toat least one hundred fifty percent (150%) of the amount of the contested lien, claimor demand, indemnifying Landlord and any such lender against liability for the sameand holding the Premises free from the effect of such lien, claim or demand, orLandlord may demand, and Tenant shall furnish whatever bond that is then requiredby Hawaii law to remove the mechanic’s or materialman’s lien from the Premisesand/or Real Property, or any interest therein. Such bond must be posted within ten(10) days following notice from Landlord. In addition, Landlord may require Tenantto pay Landlord’s and any such lender’s attorneys’ fees and costs in participating inany action to foreclose such lien if Landlord and any such lender shall decide it is toits best interest to do so. Landlord or any such lender may pay the claim prior to theenforcement thereof, in which event Tenant shall reimburse Landlord and/or suchlender, as applicable, in full, including attorneys’ fees, for any such expense with thenext due rental.

9.6 Initial Improvements by Tenant. Subject to compliance with theother provisions of this Section 9, Landlord agrees that Tenant may construct (i)approximately I ,200 square feet of office space, (ii) approximately 660 square feet oflunch room space, and (iii) one shower stall within the Premises, along with electricalmeter(s), related equipment, light fixtures, conduit, and all other electrical devicesand plumbing and sewer pipes and fixtures and items related to the improvementsdescribed in (I), (ii) or (iii). Tenant may utilize the existing frames on the roof for airconditioning if approved by Landlord’s engineering consultant.

9.7 Initial Improvements by Landlord. Landlord, at its sole cost andexpense, shall deliver the Premises to Tenant with the following improvements:

(1) The Premises shall be delivered in “broom clean” condition withall doors and the roll-up door, all lighting systems and light fixtures, allplumbing and sewer systems and fixtures, and all electrical systems, outlets,panel boxes and other fixtures, if any, in “easy operating condition” consistentwith their age.

(2) The Premises shall be delivered without the ceiling tiles andlighting fixtures in the warehouse offices and restrooms within the Premises,and Landlord will make available to Tenant fluorescent light fixtures forTenant’s installation and use.

(3) The roof and all rain gutters over the Premises shall be deliveredin a leak free condition.

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(4) The “metal-paneled” portion of the chill box located at theMauka-Ewa corner of the warehouse area of the Premises shall bedisassembled and removed from the Premises, together with all electrical andlighting wiring and fixtures in a workman-like fashion. The air-conditioningsystem and ducts within said “metal-paneled” portion of the chill box shallremain intact in so far as possible. If it is not possible to conduct thedisassembly and removal and leave the air-conditioning system and ducting inplace, then Landlord shall notify Tenant and Tenant shall decide how toproceed, provided it does not cost the Landlord additional moneys to proceedin accordance with Tenant’s wishes. Landlord shall leave said “metal-paneled” portion of the chill box area in a neat and clean condition. Theportion of the chill box enclosed by hollow-tile walls shall be left intact “as is”without improvement or change.

(5) The chill box located at the Diamond Head side of thewarehouse area of the Premises shall be disassembled and removed from thePremises in a workman-like fashion and Landlord shall leave said area in aneat and clean condition.

(6) The “vacuum tube communication system” tubes extending fromthe upper Diamond Head side of the warehouse demising wall to the ceiling ofthe “warehouse receiving/dispatch office” at the Diamond HeadlMauka portion

>1 of the warehouse area of the Premises, just east of the roll-up doors, shall beremoved from the Premises and any holes shall be patched and painted.

(7) Landlord shall ensure that all standard office interior switchesand thermostat controls (excluding main and distribution panels) for the air-conditioning, lighting and electrical systems are within the Tenant’s Premises.If this requires relocation from their current location, Landlord shall coordinatewith Tenant as to the best location for said controls.

(8) The Premises shall be delivered to Tenant with the followingitems in working order consistent with their age, and shall make anynecessary repairs and/or replacements prior to Tenant’s occupancy of thePremises: (A) all existing plumbing, electrical, lighting and other mechanicalsystems and fixtures; (B) all existing doors, roll-up doors, windows, locks andother similar devices; (C) all load levelers and load lifts servicing thewarehouse loading docks; (D) the air conditioning for the Premises; and (E) allCommon Area improvements, including, but not limited to, walkways, lighting,paving, bathrooms, elevators, escalators, irrigation and fire sprinklers.

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(9) Landlord shall paint the exterior of the building fronting theloading dock within 180 days after the commencement date of this Lease, andTenant acknowledges and agrees that such cost shall be a part of OperatingExpenses.

(10) Tenant’s service voltages shall be 277/480 volt, 3-phasefeeder(s) for lighting and air-conditioning usage, and 120/208 volt, 3-phasefeeder(s) for general purpose Tenant equipment use. Landlord shall stub thefeeders at a suitable utilization point within the Premises. Landlord’sresponsibility shall be limited to stubbing power feeders and empty telephoneconduits into the Premises. Tenant shall pay all costs of installing panels,outlets, and other equipment necessary for distributing power and telephoneservice within the Premises. Tenant shall pay for all costs of upgrading thepower feeders as necessary for any specialized equipment installed byTenant.

All other improvements within the Premises shall be by Tenant, including but notlimited to general use receptacles, lighting and auxiliary systems.

10. Insurance. Indemnity. Liability.

10.1 Liability Insurance. Tenant shall procure, at its sole cost andexpense, and keep in force during the term of this Lease, a Commercial GeneralLiability policy written on an occurrence form to include coverage for (1) premisesand operations, (2) independent contractors, (3) products and completed operations,and (4) blanket contractual liability. Such policy for bodily injury and propertydamage, combined single limit, shall have minimum limits of $1,000,000 peroccurrence, $5,000,000 general aggregate insurance and $5,000,000 products andcompleted operations aggregate. The policy shall name Landlord as an additionalassured with an insurance company authorized to do business in the State of Hawaii.The foregoing minimum limits or such other coverage may be increased as Landlordmay from time to time reasonably establish with due regard to prudent businesspractices then prevailing in the City and County of Honolulu as may then bereasonably adequate for Landlord’s protection.

10.2 Property Insurance. Landlord shall at all times during the term ofthis Lease, keep insured all buildings now or hereafter on the Real Property,including the Premises, against loss or damage by fire and extended coverage risks,including demolition clause where applicable, in the joint names of Landlord, feeowner of the Real Property and mortgagee, if any, and any other required party, astheir interests may appear, payable in case of loss to Landlord, with insurancecompanies authorized to do business in the State of Hawaii and satisfactory to

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Landlord. Tenant shall pay to Landlord, during the term hereof, Tenant’s Pro RataShare of the insurance premiums for any property insurance carried pursuant to thisSection 10.2 or required to be paid by Landlord covering the Real Property (the“Insurance Premiums”). In the event the property insurance carried by Landlord is ablanket policy in which other properties not related to the Real Property are includedwithin the coverage thereof, the Insurance Premium shall be calculated as thatportion of such blanket policy insurance premium which, in Landlord’s good faithjudgment, is properly allocable to the Real Property. The sum due under this Sectionshall be in addition to that which may be due under any other sections of this Lease.Tenant shall pay any such premium portion to Landlord within ten (10) days afterreceipt by Tenant of Landlord’s billing therefor. Landlord may, at its option, estimatethe amount of insurance premiums for property insurance to be due in the futurefrom Tenant and collect from Tenant on a monthly or quarterly basis, at Landlord’soption, the amount of Tenant’s estimated insurance premium obligation. Landlordshall provide Tenant with a reconciliation of Tenant’s account along with a billing forany shortage in the event of a deficiency or a refund check if an overpayment hasbeen made by Tenant. Tenant shall pay such billing for any shortage to Landlordwithin ten (10) days after receipt by Tenant of Landlord’s billing statement.

10.3 Tenant’s ImDrovements. Tenant shall repair or replace all ofTenant’s property damaged or destroyed, including Tenant’s leaseholdimprovements and trade fixtures, unless this Lease shall cease and terminate under

) the provisions hereof and such insurance shall name Landlord as additional insured.Tenant shall procure, at its sole cost and expense, and keep in force during the termof this Lease, a policy of insurance insuring all of Tenant’s improvements andpersonal property in the Premises.

10.4 Property of Tenant. All personal property of any kind ordescription whatsoever on the Premises shall be at Tenant’s sole risk, and Landlordshall not be liable for any damage done to or loss of such personal property ordamage or loss suffered by the business or occupation of Tenant arising from anyact or neglect of co-tenants or other occupants of the Building or of their employeesor the employees of Landlord or of other persons. Notwithstanding the foregoing,Landlord shall be responsible for any damage done or loss of such personal propertyor damage or loss suffered by the business or occupation of Tenant arising from anyact of gross negligence or willful misconduct by Landlord or Landlord’s authorizedagents and representatives.

10.5 Waiver of Subrogation. Landlord and Tenant release eachother, and their respective authorized representatives, from any claims for damage tothe Premises and Building, and to the fixtures, personal property, tenantimprovements, and alterations of either Landlord or Tenant in or on the Premises

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and Building that are caused by or result from risks insured against under anyinsurance policies carried by Landlord or Tenant and in force at the time of suchdamage.

10.6 Tenant’s Indemnification and Hold Harmless. Tenant agrees toindemnify and save Landlord harmless against and from any and all claims by or onbehalf of any person, firm or corporation arising from Tenant’s use of the Premises orthe conduct of Tenant’s business or from any activity, work or thing done, permittedor suffered by Tenant, in or about the Premises from and after the commencement ofthis Lease, and shall further indemnify and save Landlord harmless against and fromany and all claims arising from any breach or default on Tenant’s part in theperformance of any covenant or agreement on Tenant’s part to be observed andperformed, or arising from any act or negligence of Tenant, or any of Tenant’sagents, contractors, employees, licensees or visitors. Notwithstanding the foregoing,Tenant shalt not indemnify Landlord for the gross negligence or willful misconduct ofLandlord, Landlord’s employees or agents, and Landlord shall hold Tenant harmlessfrom all damages arising out of any damage resulting from the gross negligence orwillful misconduct of Landlord, Landlord’s employees or agents. Tenant’s andLandlord’s obligation to indemnify and hold the other party harmless shall be limitedto the sum that exceeds the amount of insurance proceeds, if any, received by theparty being indemnified. As used herein “claims” shall include, without limitation, alllosses, damages, liabilities, law suits, judgments, costs, attorney’s fees, andexpenses incurred in connection with any of the foregoing. In case any action orproceeding be brought against Landlord by reason of any such claim, Tenant uponnotice from Landlord covenants to resist and defend at Tenant’s sole expense suchaction or proceeding by legal counsel reasonably satisfactory to Landlord. Tenantassumes all risk of damage to property, in, upon or about the Premises from anysource and to whomever belonging, and Tenant waives all claims in respect thereofagainst Landlord and agrees to defend and save Landlord harmless from andagainst any such claims by others.

10.7 Insurance Policies and Certificates. Tenant shall provideLandlord with copies of all insurance policies obtained by Tenant pursuant to theterms of this Lease. Thereafter, Tenant may provide Landlord with currentcertificates of such insurance with a certification that such insurance policies havenot been changed or modified. Landlord shall provide to Tenant upon Tenant’srequest not more than once per calendar year, copies of all insurance policiesobtained by Landlord pursuant to the ternis of this Lease.

11. Legal and Other Expenses. Tenant shall pay, as additional rent, allattorneys’ fees and disbursements, and all other court costs or expenses of legal

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proceedings or other legal services which Landlord may incur or pay out by reasonof, or in connection with:

(1) any action or proceeding brought by Landlord whereinLandlord obtains a final judgment or award against Tenant (includingarbitration) on account of any default by Tenant in the observance orperformance of any obligation under this Lease, including, but not limited to,matters involving payment of rent and additional rent, alterations or Tenantssubletting or assignment;

(2) any action or proceeding brought by Tenant againstLandlord (or any officer, partner or employee of Landlord) in which Tenantfails to secure a final judgment against Landlord;

(3) any other appearance by Landlord (or any officer, partneror employee of Landlord) as a witness or otherwise in any action orproceeding whatsoever involving or affecting Tenant or this Lease;

(4) any assignment, sublease or leasehold mortgageproposed or granted by Tenant (whether or not permitted under this Lease),and all negotiations with respect thereto; and

(5) any alteration of the Premises by Tenant, and allnegotiations with respect thereto.

In any action or proceeding referred to in subsection (1) or any actionor proceeding brought by Tenant against Landlord (or any officer, partner oremployee of Landlord), Tenant shall be entitled to recover its attorneys’ fees andcosts if Tenant is the prevailing party against Landlord. Further, Landlord shall pay,all attorneys’ fees and disbursements, and all other court costs or expenses of legalproceedings or other legal services which Tenant may incur or pay out by reason of,or in connection with any other appearance by Tenant (or any officer, partner oremployee of Tenant) as a witness or otherwise in any action or proceedingwhatsoever involving or affecting Landlord or this Lease.

12. Assignment and Subletting.

12.1 Lease is Personal. The purpose of this Lease is to transferpossession of the Premises to Tenant for Tenant’s personal use in return for certainbenefits, including rent, to be transferred to the Landlord. Tenant’s right to assign orsublet as stated in this Section is subsidiary and incidental to the underlying purposeof this Lease. Tenant acknowledges and agrees that it has entered into this Lease in

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order to acquire the Premises for its own personal use and not for the purpose ofobtaining the right to convey the leasehold to others.

12.2 “Transfer of the Premises” Defined. The terms “Transfer of thePremises” or ‘“Transfer’ as used herein shall include any assignment of all or anypart of this Lease (including assignment by operation of law), subletting of all or anypart of the Premises or transfer of possession, or right of possession or contingentright of possession of all or any portion of the Premises, including without limitation,concession, mortgage, devise, hypothecation, agency, franchise or managementagreement, or to suffer any other person (the agents and servants of Tenantexcepted) to occupy or use the said Premises or any portion thereof. If Tenant is acorporation which is not deemed a public corporation, or is an unincorporatedassociation or partnership, or Tenant consists of more than one party, the transfer,assignment or hypothecation of any stock or interest in such corporation,association, partnership or ownership interest, in the aggregate in excess oftwenty-five percent (25%), shall be deemed a Transfer of the Premises.

12.3 No Transfer Without Consent. Tenant shall not suffer a Transferof the Premises or any interest therein, or any part thereof, or any right or privilegeappurtenant thereto without the prior written consent of Landlord, and a consent toone Transfer of the Premises shall not be deemed to be a consent to anysubsequent Transfer of the Premises. Any Transfer of the Premises without suchconsent shall be void, and shall, at the option of Landlord) terminate this Lease.Notwithstanding the foregoing, Tenant shall have the right, without the consent ofLandlord, but upon prior written notice to Landlord, to assign this Lease to anysubsidiary or parent company of Tenant, or affiliated organization that comes underthe ownership umbrella of Tenant’s parent company.

12.4 When Consent Granted. The consent of Landlord to a Transfermay not be unreasonably withheld, provided should Landlord withhold its consent forany of the following reasons, which list is not exclusive, such withholding shall bedeemed to be reasonable:

(1) Financial strength of the proposed transferee is not atleast equal to that of Tenant at the time of execution of this Lease;

(2) A proposed transferee whose occupation of the Premiseswould cause a diminution in the reputation of the Building or the otherbusinesses located therein;

(3) A proposed transferee whose impact on the commonfacilities or the other occupants of the Building would be disadvantageous; or

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(4) A proposed transferee whose occupancy will require avariation in the terms of the Lease.

12.5 Procedure for Obtaining Consent. Landlord need notcommence its review of any proposed Transfer, or respond to any request by Tenantwith respect to such, unless and until it has received from Tenant adequatedescriptive information concerning the business to be conducted by the proposedtransferee, the transferee’s financial capacity, and such other information as mayreasonably be required in order to form a prudent judgment as to the acceptability ofthe proposed Transfer, including, without limitation, the following:

(1) The past two year’s Federal Income Tax returns of theproposed transferee (or in the alternative the past two years audited annualBalance Sheets and Profit and Loss statements, certified correct by a CertifiedPublic Accountant);

(2) Banking references of the proposed transferee;

(3) A resume of the business background and experience ofthe proposed transferee; and

(4) An executed copy of the instrument by which Tenant) proposes to effectuate the Transfer.

Tenant shall reimburse Landlord as additional rent for Landlord’s reasonable costsand attorneys’ fees incurred ii, conjunction with the processing and documentation ofany proposed Transfer of the Premises, whether or not consent is granted.

12.6 Recapture. By written notice to Tenant (the “TerminationNotice”) within twenty (20) business days following submission to Landlord by Tenantof the information specified in Section 12.5, Landlord may, but shall not be obligatedto, (1) terminate this Lease in the event of an assignment of this Lease or sublet theentire Premises, or (2) terminate this Lease as to the portion of the Premises to besublet, if the sublet is to be of less than the entire Premises. Upon the terminationdate of this Lease, if Landlord exercises its rights under this Section, Landlord shallpay to Tenant the unamortized cost of Tenant’s leasehold improvements multipliedby that fraction the numerator of which is the rentable square footage of the area forassignment or sublease, and the denominator of which is the rentable squarefootage of the area of the entire Premises before such Transfer. In the eventLandlord elects to terminate under the provisions hereof, and the area to beterminated is less than the entire Premises, an amendment to this Lease shall beexecuted in which Tenant’s obligations for rent and other charges shall be reduced in

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proportion to the reduction in the size of the Premises caused thereby by restatingthe description of the Premises, and its monetary obligations hereunder shall bereduced by multiplying such obligations by a fraction, the numerator of which is therentable square footage of the area of the Premises offered for sublease and thedenominator of which is the rentable square footage of the area of the Premisesimmediately prior to such termination.

12.7 Effect of Transfer. If Landlord consents to a Transfer, the following conditions shall apply:

(1) Each and every covenant, condition or obligation imposedupon Tenant by this Lease and each and every right, remedy or benefitafforded Landlord by this Lease shall not be impaired or diminished as a resultof such Transfer.

(2) On a monthly basis, any sums of money, or other economic consideration received by Tenant from the Transferee in such month(whether or not for a period longer than one month), including higher rent,bonuses, key. money, or the like which exceed, in the aggregate, the totalsums which Tenant pays Landlord under this Lease in such month, or theprorated portion thereof if the Premises transferred is less than the entirePremises, shall be payable fifty percent (50%) to Landlord and fifty percent(50%) to Tenant, and Landlord’s share shall be paid with Tenant’s payment ofmonthly rent.

(3) No Transfer, whether or not consent of Landlord is required hereunder, shall relieve Tenant of its primary obligation to pay the rentand to perform all other obligations to be performed by Tenant hereunder.The acceptance of rent by Landlord from any person shall not be deemed tobe a waiver by Landlord of any provision of this Lease or to be a consent toany Transfer of the Premises.

(4) If Landlord consents to a sublease, such sublease shallnot extend beyond the expiration of the tern, of this Lease.

(5) No Transfer shall be valid and no transferee shall takepossession of the Premises or any part thereof unless, within ten (10) daysafter the execution of the documentary evidence thereof, Tenant shall deliverto Landlord a duly executed duplicate original of the Transfer instrument inform satisfactory to Landlord which provides that (i) the transferee assumesTenants obligations for the payment of rent and for the full and faithfulobservance and performance of the covenants, terms and conditions

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contained herein, (ii) such transferee will, at Landlord’s election, attorn directlyto Landlord in the event Tenant’s Lease is terminated for any reason on theterms set forth in the instrument of transfer and (iii) such instrument of transfercontains such other assurances as Landlord reasonably deems necessary.

13. Damage to Premises.

13.1 Rights of Termination. In the event the Premises suffers (a) an“uninsured property loss” or (b) a property loss which cannot be repaired within onehundred twenty (120) days from the date of destruction under the laws andregulations of state, federal, county or municipal authorities, or other authorities withjurisdiction, Landlord may terminate this Lease as of the date of the damage uponwritten notice to Tenant following the uninsured property loss. In the event of anuninsured property loss to the Premises which cannot be repaired within onehundred twenty (120) days of the occurrence thereof, Tenant shall have the right toterminate the Lease by written notice to Landlord within twenty (20) days followingnotice from Landlord that the time for restoration shall exceed one hundred twenty(120) days. For the purposes of this Lease, the term “uninsured property loss” shallmean any loss arising from a peril not covered by the standard form of CommercialProperty ISO insurance policy.

13.2 Repairs. In the event of a property loss which may be repairedwithin one hundred twenty (120) days from the date of the damage, or, in thealternative, in the event the parties do not elect to terminate this Lease under theterms of Section 13.1 above, then this Lease shall continue in full force and effectand Landlord shall forthwith undertake to make such repairs to reconstitute thePremises to as near the condition as existed prior to the property toss as practicable.Such partial destruction shall in no way annul or void this Lease except that Tenantshall be entitled to a proportionate reduction of rent following the property loss anduntil the time the Premises are restored. Such reduction shall be an amount whichreflects the degree of interference with Tenant’s business. So long as Tenantconducts its business in the Premises, there shall be no abatement until the partiesagree on the amount thereof, If the parties cannot agree within forty-five (45) days ofthe property loss, the matter shall be submitted to arbitration under the rules of theAmerican Arbitration Association, Upon the resolution of the dispute, the settlementshall be retroactive and Landlord shall within ten (10) days thereafter refund toTenant any sums due in respect of the reduced rental from the date of the propertyloss. Landlord’s obligations to restore shall in no way include any constructionoriginally performed by Tenant or subsequently undertaken by Tenant, and shallinclude solely the scope of the original construction of the Building and the Premises.

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13.3 Repair Costs. The cost of any repairs to be made by Landlord,pursuant to Section 13.2 of this Lease, shall be paid by Landlord utilizing availableinsurance proceeds.

13.4 Waiver. Tenant hereby waives all statutory or common lawrights of termination in respect to any partial destruction or property loss whichLandlord is obligated to repair or may elect to repair under the terms of thisSection 13. Further, in event of a property loss occurring during the last two (2)years of the original term hereof or of any extension, Landlord need not undertakeany repairs and may cancel this Lease unless Tenant has the right under the termsof this Lease to extend the term for an additional period of at least five (5) years anddoes so within thirty (30) days of the date of the property loss.

13.5 Landlord’s Election. fri the event that the Building is destroyedto the extent of not less than thirty-three and one- third percent (33-113%) of thereplacement cost thereof, Landlord may elect to terminate this Lease, whether thePremises has been damaged or not, in the same manner as in Section 13.1 above.At all events, a total destruction of the Building or the Premises itself, shall terminatethis Lease.

14. Surrender.

14.1 Surrender. At the end of the term or other sooner termination ofthis Lease, Tenant shall peaceably deliver up to Landlord possession of thePremises, together with all improvements upon or belonging to the same, bywhomsoever made, in good repair, order and condition, normal wear and tearexcepted. Any partitions, plumbing, electrical wiring and other additions to orimprovements upon the Premises installed by Tenant shall be the property ofLandlord, If Tenant shall not then be in default under this Lease and upon theexpiration or earlier termination of this Lease, Tenant shall have the right to removeany and all trade fixtures (removable without damage to the Building or thePremises) and personal equipment. Tenant shall close all holes resulting from theremoval of fixtures and make all other repairs. If such trade fixtures and personalequipment are not removed by Tenant on or before the expiration or earliertermination of this Lease, Landlord may remove the same, without notice, andcharge the cost of such removal to Tenant, including court costs, attorneys’ fees andstorage charges, which cost Tenant promises to pay, or consider the same asabandoned property and take title thereto. Tenant shall also remove all of its otherpersonal property from the Premises. Tenant’s obligations hereunder shall survivethe termination of this Lease.

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14.2 Holding Over. If, with the permission of Landlord, Tenantremains in possession of the Premises after the expiration of the term, Tenant shallbe deemed to be occupying the Premises as a tenant from month-to-month, at thesame rent and subject to all of the other terms and conditions of this Lease effectiveimmediately prior thereto. If without the permission of Landlord, Tenant remains inpossession of the Premises after the termination of this Lease, Tenant shall pay asliquidated damages for each day possession is withheld, an amount per day equal todouble the rent payable by Tenant immediately prior to the termination of this Lease,computed on a daily basis.

15. Default and Remedies.

15.1 Default. The occurrence of any of the following shall constitute amaterial default and breach of this Lease by Tenant:

(1) Any failure by Tenant to pay the rental or to make anyother payment required to be made by Tenant hereunder when due;

(2) The abandonment or vacation of the Premises by Tenant;

(3) A failure by Tenant to observe and perform any otherprovision of this Lease to be observed or performed by Tenant, where such

) failure continues for ten (10) days after written notice thereof by Landlord toTenant; provided, however, that if the nature of the default is such that thesame cannot reasonably be cured within the ten (10) day period allowed,Tenant shall not be deemed to be in default if Tenant shall, within such ten(10) day period, commence to cure and thereafter diligently prosecute thesame to completion;

(4) Either (i) the appointment of a receiver (except a receiverappointed at the instance or request of Landlord) to take possession of all orsubstantially all of the assets of Tenant, or (ii) a general assignment by Tenantfor the benefit of creditors, or (iii) any action taken or suffered by Tenant underany insolvency or bankruptcy act shall constitute a breach of this Lease byTenant. In such event, Landlord may, at its option, declare this Leaseterminated and forfeited by Tenant, and Landlord shall be entitled toimmediate possession of the Premises. Upon such notice of termination, thisLease shall terminate immediately and automatically by its own limitation;

(5) Any three (3) failures by Tenant to observe and performany provision of this Lease during any twelve (12) month period of the term,

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as such may be extended, shall constitute, at the option of Landlord, aseparate and noncurable default.

15.2 Termination and Damages. In the event of any default byTenant) then in addition to any other remedies available to Landlord herein or at lawor in equity, Landlord shall have the immediate option to terminate this Lease and allrights of Tenant hereunder by giving written notice of such intention to terminate. Inthe event that Landlord shall elect to so terminate this Lease, then Landlord mayrecover from Tenant:

(1) The worth at the time of award of any unpaid rent whichhad been earned at the time of such termination; plus

(2) The worth at the time of award of the amount by whichthe unpaid rent which would have been earned after termination until the timeof award exceeds the amount of such rental loss Tenant proves could havebeen reasonably avoided; plus

(3) The worth at the time of award of the amount by whichthe unpaid rent for the balance of the term after the time of award exceeds theamount of such rental loss that Tenant proves could be reasonably avoided;and

(4) At Landlord’s election, such other amounts in addition toor in lieu of the foregoing as may be permitted from time to time by theapplicable law in the State of Hawaii.

The terms “rent” or “rental” shall be deemed to be and to mean the rent described inSection 3 above, and all other sums required to be paid by Tenant pursuant to theterms of this Lease, and Tenant shall pay general excise tax on all payments of rent.The “worth at the time of award” is computed by allowing interest at the rate of tenpercent (10%) per annum. As used above, the “worth at the time of award” iscomputed by discounting such amount at the discount rate of the San FranciscoFederal Reserve Bank at the time of award plus one percent (1%).

15.3 Personal Property. In the event of any default by Tenant,Landlord shall also have the right, with or without terminating this Lease, to reenterthe Premises and remove all persons and property from the Premises; such propertymay be removed and stored in a public warehouse or elsewhere at the cost and forthe account of Tenant. In the event of default, all of Tenants fixtures, furniture,equipment, improvements, additions, alterations and other personal property shallremain upon the Premises and, in that event and continuing during the length of

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such default, Landlord shall have the sole right to take exclusive possession of suchproperty and to use it, rent or charge free, until all defaults are cured or, at Landlord’soption, at any time during the Term of this Lease, to require Tenant to forthwithremove such property. The rights stated herein are in addition to Landlord’s rightsdescribed in Section 15.2.

15.4 Recovery of Rent: Relettireg. In the event of the vacation orabandonment of the Premises by Tenant or in the event that Landlord shall elect toreenter as provided above, or shall take possession of the Premises pursuant tolegal proceeding or pursuant to any notice provided by law, then, if Landlord doesnot elect to terminate this Lease, this Lease shall continue in effect for so long asLandlord does not terminate Tenants right to possession, and Landlord may enforceall its rights and remedies under this Lease, including, without limitation, Landlord’sright, from time to time, without terminating this Lease, to either recover all rental asit becomes due or relet the Premises or any part thereof for such term or terms andat such rental or rentals and upon such other terms and conditions as Landlord in itssole discretion, may deem advisable with the right to make alterations and repairs tothe Premises. Acts of maintenance or preservation or efforts to relet the Premises orthe appointment of a receiver upon initiation of Landlord or other legal proceedinggranting Landlord or its agent possession to protect Landlord’s interest under thisLease shall not constitute a termination of Tenant’s right to possession. In the eventthat Landlord shall elect to so relet, then rentals received by Landlord from such

) reletting shall be applied: first, to the payment of any indebtedness other than rentdue hereunder from Tenant to Landlord; second, to the payment of any cost of suchreletting; third, to the payment of the cost of any alterations and repairs to thePremises; fourth, to the payment of rent due and unpaid hereunder; and the residue,if any, shall be held by Landlord and applied in payment of future rent as the samemay become due and payable hereunder. Should that portion of such rentalsreceived from such reletting during any month, which is applied by the payment ofrent hereunder, be less than the rent payable during that month by Tenanthereunder, then Tenant shall pay such deficiency to Landlord immediately upondemand therefor by Landlord. Such deficiency shall be calculated and paid monthly.Tenant shall also pay to Landlord, as soon as ascertained, any costs and expensesincurred by Landlord in such reletting or in making such alterations and repairs notcovered by the rentals received from such reletting. No reentry or taking possessionof the Premises or any other action under this Section shall be construed as anelection to terminate this Lease unless a written notice of such intention be given toTenant or unless the termination thereof be decreed by a court of competentjurisdiction. Notwithstanding any reletting without termination by Landlord becauseof any default by Tenant, Landlord may at any time after such reletting elect toterminate this Lease for any such default.

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15.5 No Waiver. Efforts by Landlord to mitigate the damages causedby Tenant’s default of this Lease shall not constitute a waiver of Landlord’s right torecover damages hereunder.

15.6 Advances by Landlord and Delinquent Rentals. If Tenant fails tomake any of the payments such as for real property taxes, assessments and the like,required to be made under this Lease, or by any act or neglect of Tenant causesLandlord’s interest in the Premises or any portion thereof to be jeopardized in anymanner, Landlord may make any or all such payments for Tenant’s account andTenant shall forthwith repay to Landlord such advances, together with any costs andattorney’s fees which may thereby be incurred. All delinquent rentals and all suchadvances made by Landlord shall bear interest from the due date at eighteenpercent (18%) per year.

15.7 Cumulative Remedies. The various rights, options, electionpowers and remedies of Landlord contained in this Section 15 and elsewhere in thisLease shall be construed as cumulative and no one of them exclusive of any othersor of any legal or equitable remedy which Landlord might otherwise have in the eventof breach or default, and the exercise of one right or remedy by Landlord shall not inany way impair its right to any other right or remedy.

16. Condemnation. Ifatanytime during the term of this Lease thePremises or any part thereof shall be taken or condemned in fee for any public useby any authority or corporation having the power of eminent domain, then and inevery case the estate and interest of Tenant in the Premises so taken shall at oncecease and determine, and Tenant shall not by reason of such taking orcondemnation be entitled to any claim against either Landlord or others forcompensation or indemnity for leasehold interest or for any land or improvementsthereon except as herein expressly provided. All compensation payable or to bepaid by reason thereof shall be payable to and be the sole property of Landlord, andTenant shall have no interest in or claim to such compensation or any part thereofwhatsoever. If a part of the Premises shall be so taken or condemned, the rentthereafter payable for the remainder of the tern, shall be reduced in the proportionthat the area of land so taken bears to the total area demised. Tenant shall have theright to claim and recover from the condemning authority, but not from Landlord(unless Tenant’s compensation is included in Landlord’s award), such compensationas may be separately recoverable by Tenant in Tenant’s own right for any damagesto Tenant’s business on the Premises or for any cost or loss to Tenant in altering anyimprovements thereon or in removing Tenant’s equipment, fixtures, merchandise,furniture and other personal property therefrom by reason of such taking, so long assuch action or the payment of such compensation shall not affect or diminish thecompensation payable to Landlord. The taking or condemnation of any leasehold

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interest in the Premises shall not excuse Tenant from full performance of Tenant’scovenants and obligations under this Lease for the payment of money, but Tenant insuch event shall be entitled to claim and recover from the condemning authorityTenant’s damage sustained by reason of such taking.

17. No Abatement of Rent. Except as otherwise provided in this Lease,neither part nor total destruction of any building or improvement by fire, elements orother cause shall affect the obligations of Tenant as to payment of rent and the rentshall not abate, diminish or cease.

18. Subordination. This Lease shall be subordinate to any ground lease,mortgage, deed of trust or any other hypothecation for security now or hereafterplaced upon the Real Property or a part thereof and to any and all advances madeon the security thereof and to all renewals, modifications, consolidations,replacements and extensions thereof. If any mortgagee, trustee or ground lessorshall elect to have this Lease prior to the lien of its mortgage, deed of trust or groundlease and shall give written notice thereof to Tenant, this Lease shall be deemedprior to such mortgage, deed of trust or ground lease, whether this Lease is datedprior or subsequent to the date of said mortgage, deed of trust or ground lease or thedate of recording thereof.

18.1 Subordinate to Ground Lease. This Lease is expressly subject) and subordinate to all of the provisions of that certain Indenture of Lease dated

July 2, 1970 (herein referred to as “Ground Lease”), by and between the Trustees ofthe Estate of Samuel Mills Damon, Deceased (“Ground Lessor”) and Eastman KodakCompany, as amended from time to time, the ground lessee’s interest therein havingbeen assigned to Landlord. Tenant covenants with Landlord that it will comply withall applicable provisions of the Ground Lease, and will not cause a default under theGround Lease.

18.2 Further Documents. Tenant agrees to execute and deliver anydocuments customarily required by lenders, as may be required by any holder orproposed holder of any mortgage, deed of trust or other encumbrance now orhereafter placed, charged or enforced against Landlords interest in this Lease andthe leasehold estate thereby created or all or any part of the land, buildings orimprovements included in the Building so long as Tenant has received satisfactorynondisturbance agreements. Tenant shall execute and deliver such documents atany time and from time to time upon request by Landlord within ten (10) days fromwritten notice from Landlord. Landlord shall be responsible for all costs incurred inthe preparation of such documents. However, Tenant shall be responsible for anycosts in the execution and delivery of such documents, including its consultant’s, in-house or outside counsel’s review of such documents.

7824-413061-1July31, 1995 35

18.3 Attornment. Tenant agrees, in the event any proceedings arebrought for the foreclosure of, or in the event of exercise of the power of sale under,any mortgage made by Landlord covering the Premises, to attorn to the purchaserupon any such foreclosure or sale and to recognize such purchaser as Landlordunder this Lease, it being understood and agreed by Tenant that such purchasershall not be liable for any act or omission of a prior Landlord nor be subject to anyoffsets or defenses (except as allowed by this Lease) which Tenant may haveagainst any prior Landlord. Tenant, upon request of any party in interest, shallexecute such instrument or instruments to carry out the intent herein as shall berequested by Landlord.

19. Sale of Premises. In the event of a sale or conveyance by Landlord ofLandlord’s interest in the Premises or the Building, Landlord shall be released fromany future liability under this Lease, with the successor in interest to Landlord to besolely liable to Tenant so long as the successor in interest to Landlord assumes allliability under this Lease.

20. Notices. Any notice, communication, approval, disapproval, request orreply (hereinafter called “Notice”) provided in this Lease or permitted to be given,made or accepted by either party to the other, must be in writing, and shall bedeemed to have been duly given on the date of service if given or served personallyon the party to whom notice is to be given, or on the third day after mailing iftransmitted by facsimile and confirmed by Federal Express or similar overnightcourier service or by prepaid certified or registered mail addressed to the party towhom notice is to be given. Each party hereto shall have the right from time to timeto change its address, by giving Notice in writing to the other party as hereinprovided, at least five (5) business days prior to the effective date of such change ofaddress.

21. Miscellaneous Provisions.

21.1 Time of Essence. Time is of the essence for all provisions ofthis Lease.

21.2 Late Payment Penalty. If Landlord or Tenant shall fail to pay tothe other party, any of the sums, costs and expenses enumerated in this Lease, andsuch non-payment shall continue for a period often (10) days, the delinquent partyshall pay to the other party, a “late charge” equal to the greater of five percent (5%)of the amount then due or FIFTY AND NO/I 00 DOLLARS ($50.00) to defrayadditional costs incurred in connection with the delinquent payment, per month. Thelate charge shall be in addition to any other remedy of the non-delinquent partydescribed in this Lease.

7824-4/3061-1July31, 1995 36

21.3 Interest Any and all sums due under this Lease, whether byLandlord or Tenant, which are unpaid when due shall bear interest at twelve percent(12%) per year until fully paid.

21.4 Choice of Law. This Lease shall be governed by the laws of theState of Hawaii.

21.5 Entire Agreement. This Lease and the Exhibits attached to it,set forth all the covenants, promises, agreements, conditions and understandingsbetween Landlord and Tenant concerning the Premises, and there are no covenants,promises, agreements, conditions or understandings, either oral or written, betweenthem other than as are set forth. Except as otherwise provided, no subsequentalteration, amendment, change or addition to this Lease shall be binding uponLandlord or Tenant unless in writing and signed by them.

21.6 Severability. If any term of this Lease or any application thereofshall be invalid or unenforceable, the remainder of this Lease and any otherapplication of such term shall not be affected thereby.

21.7 No Accord and Satisfaction. No payments by Tenant or receiptby Landlord of a lesser amount than the rent stipulated in this Lease shall bedeemed to be other than on account of the earliest stipulated rent, nor shall anyendorsement or statement on any check or any letter accompanying any check orpayment as rent be deemed an accord and satisfaction, and Landlord may acceptsuch check or payment without prejudice to Landlord’s right to recover the balance ofsuch rent or pursue any other remedy in this Lease provided.

21.8 Successors and Assigns. All of the terms, covenants andconditions of this Lease shall inure to the benefit of and be binding upon thesuccessors and assigns of Landlord and upon the successors and/or heirs, legalrepresentatives and permitted assigns of Tenant to the same extent as the terms,covenants and conditions inure to the benefit of and are binding upon Landlord andTenant, respectively. In any case where there shall be more than one Tenant, eachTenant shall be jointly and severally liable hereunder. The use of any gender shallinclude any and all genders, and the use of any number shall be construed assingular or plural, as the case may require.

21.9 No Partnership Intended. Landlord does not, in anyway orforany purpose, become a partner of Tenant in the conduct of its business, orotherwise, or joint venturer or a member of a joint enterprise with Tenant.

7824-413061-1July31. 1995 37

21.10 No Party Deemed Drafter. No party shall be deemed to be thedrafter of this Lease, If this Lease is ever construed or interpreted by a court of lawor other authority before which this Lease is properly presented, such court or otherauthority shall not construe this Lease or any provision hereof against either party asthe drafter.

21.11 Waiver of Jury Trial. The parties hereto shall and they do waivetrial by jury in any action, proceeding or counterclaim brought by either of the partieshereto against the other on any mailers whatsoever arising out of or in any wayconnected with this Lease, the relationship of Landlord and Tenant, Tenant’s use oroccupancy of the Premises, and/or any claim of injury or damage.

21.12 Headings and Paragraphs. The headings of this Lease areinserted only for convenience and reference and shall in no way define, limit ordescribe the scope or intent of any provision of this Lease.

21.13 Counterparts. This Lease may be executed in two or morecounterparts, each of which shall be deemed an original, but all of which togethershall constitute one and the same instrument.

21.14 Facsimile Signatures. Facsimile signatures shall be accepted asoriginal signatures and Landlord and Tenant shall deliver a hard copy with theoriginal signatures to the other.

21.15 No Recordation. This Lease may not be recorded in the Bureauof Conveyances or the Office of the Assistant Registrar of the Land Court of theState of Hawaii.

21.16 Authority. The parties signing below represent and warrant thatthey have the requisite authority to bind the entities on whose behalf they aresigning.

[END OF TEXT, CONTINUED ON NEXT PAGEI

7824-4/3061-1July31, 1995 38

A

IN WITNESS WHEREOF, the parties to this Lease have executed thisLease the day and year first above written.

‘OLELO: THE CORPORATION FORCOMMUNITY TELEVISION,a Hawaii corporation

By:

By:.

It~ ScsCaTr.ka~tG4ZcC_

Its:

“Landlord”

“Tenant”

Attachments:

Exhibit “A” -- Description of Real PropertyExhibit “B” — Depiction of Premises

By:_Its:

7824.413051-IJuly31, 1995 39

SEVENTH AMENDMENT OF LEASE

For valuable consideration, the receipt and adequacy of which are expresslyacknowledged, Landlord and Tenant agree that:

1. Definitions. In this Seventh Amendment the following terms have themeaning given:

(a) Landlord: OLELO COMMUNITY TELEVISION, a Hawaiicorporation, formerly known as ‘OIeIo: the Corporation forCommunity Television.

(b) Tenant:

(c) Lease: Lease dated August 1, 1995, between Landlord and Tenantfor approximately 16,598 square feet of warehouse space located inthe building located at 1122 Mapunapuna, Honolulu, Hawaii, asamended by First Amendment of Lease with an effective date ofApril 16, 2001, Second Amendment to Lease dated November 20,2002, but effective October 1 2002, Third Amendment of Lease withan effective date of July 1, 2005, Fourth Amendment of Lease withan effective date of May 24, 2007, Fifth Amendment of Lease withan effective date of March 17, 2008, and Sixth Amendment of Leasewith an effective date of August 6, 2009.

(d) Effective Date: August 2, 2010.

Any capitalized term used in this Seventh Amendment of Lease which is not defined inthis Seventh Amendment of Lease has the meaning set forth for such term in the Lease.

2. Purpose. Tenant has exercised its Second Option to extend the term of theLease for the 12-month period from December 1, 2010 to November 30, 2011, andtherefore the primary purpose of this Seventh Amendment of Lease is to extend the termof the Lease, and set the rent for such extended term, subject to the terms and conditionscontained in this Seventh Amendment of Lease.

3. Extension of Term. As of the Effective Date, Section 2 of the Lease entitled“Term” is hereby amended in its entirety to read as follows:

“The term of this Lease shall commence on August 1, 1 995, and terminateon November 30, 2011, unless further extended. The Second Option toextend the term of the Lease contained in the Lease has been exercised,and therefore cannot be further exercised.”

4. Rent for Extended Term. As of the Effective Date, Section 3 of the Leaseentitled “Rent” is hereby amended in its entirety to read as follows:

“Rent. For each and every month during the term of this Lease,commencing on the first day of the month following the commencementdate, Tenant shall pay to Landlord on or before the first day of that month,

746647v1 13061 . 1

at Landlord’s office or at any other place designated by Landlord, withoutdeduction or offset, prior notice or demand, in lawful money of the UnitedStates of America, the following rental for the respective periods hereinafterset forth as follows:

August 1, 1995 through November 30, 1995--rent shall be abated;

Partial months at the commencement and termination of this Lease,as extended, shall be prorated on the basis of a thirty (30) day month.Tenant shall pay all other charges required by this Lease during the term ofthis Lease, including but not limited to utilities, and its Pro Rata Share ofreal property taxes and Operating Costs.”

5. Brokers. Landlord is represented by Leandro Corporation. Tenantrepresents and warrants to Landlord that it is unrepresented with regard to this SeventhAmendment of Lease. Each of them will indemnify and hold the other harmless from anyclaims for fees or commissions from anyone with whom either of them has consulted ornegotiated with regard to this Seventh Amendment of Lease.

6. Confirmation of Lease. Landlord and Tenant confirm and ratify in allrespects the terms and conditions of the Lease, as amended by this SeventhAmendment of Lease.

7. Counterpart Execution: Facsimile Sicinatures. This Seventh Amendmentmay be executed in counterparts, each of which shall, irrespective of the date of itsexecution and delivery, be deemed an original, and, said counterparts together shallconstitute one and the same instrument. Facsimile signatures shall be accepted asoriginal signatures.

[END OF TEXT, CONTINUED ON NEXT PAGE)

December 1, 1995 through November 30, 1998-- $14,938.20 per month;December 1, 1998 through November 30, 2001 -- $16,432.02 per month;December 1, 2001 through November 30, 2002-- $17,253.60 per month;December11 2002 through November 30, 2003-- $17,771.23 per month;December 1, 2003 through November 30, 2004-- $18,304.36 per month;December 1, 2004 through November 30, 2005 -- $18,853.49 per month;December 1, 2005 through November 30, 2006-- $19,607.62 per month;December 1, 2006 through November 30, 2007 -- $20,391.93 per month;December 1, 2007 through September 30, 2008 -- $21,207.60 per month;October 1, 2008 through November 30, 2009 -- $22,055.90 per month;December 1, 2009 through November 30, 2010-- $22,938.13 per month;December 1, 2010 through November 30, 2011 -- $23,855.65 per month.

748847.1 1 3061 2

IN WITNESS WHEREOF, Landlord andAmendment of Lease as of the Effective Date nd

tLELO COMMUNITY TELEVISION,a Hawaii corporation

Tenant have executed this Seventhbated above.

J

By____ _____

Its: .‘~ej,fle,rf

ByIts:

Landlord

3

F LEANDRO CORPORATIONU~ Conirnerctaf/lndustrjol Real Estate

June 15,2011

JUN 17 ?fll}

Re: Notification teller of June 01, 201 I of intent to not exercise the third and final option ofthe Seventh Amendment of Lease Agreement dated August 0!, 1995 between Olelo CommunityTelevision, as Landlord and as Tenant for warehouse premises locatedat 1122 Mapunapuna Street, I lonolulu, I-iawaii (the “Lease”)

Dear Mr Ruth

Your letter dated June 01, 2011 serving notice of your intent to not exercise the option of theLease referenced above for the “Third Option,” from December 01, 2011 through November30,2012, and your request for an extension of the current lease from November 3%-20l I to February29, 2Q12 at time same renlal [erm~ was received June 03, 2011. r

You are hereby notified that the Landlord agrees to the e.<Iension with all terms and conditions ofthe Lease remaining the saute and in full force and effect from N~embtr9O~0l Ito February29.2012.

Olelo has enjoyed having you as a tenant over [lie past 16 years and wish you the very best in [liefuture.

% Tfl2cfl*re( I

Kindly sign your acknowledgement of this letter in the space provided below and return a copy toinc by July 0 1, 20 II.

Y7~Y~

/hlanlt Leandro (B)Consultant to Olelo

Acknowledged:Olelo Community Television

By:

lts~

Date:

1188 Bishop Sired. Suite 1605 Honokdu, Hawaii 96813 (808) 521 3325 fax (808) 521-3390

3

LAND COURT SYSTEM REGULAR SYSTEMRewrn by~ Mull ( ) Pickup ( ) To:

STATE, 01’: HAWAIIDEPARTMENT OF ACCOUNTING AND ~3NERAL SERVICES

LEASE AGREEMENT No. 92-16-0133

- ) between‘OLELOCOMMUNITY TELEVISIONa Hawaii non —proflt corporal uni

II 22 Mapunapuna StreetHonolulu. Ilawaii 96819

I.essor

STATE OF [IAWAITby its

DEPARTMENT OF ACCOUIifING AND GENERAL S6RVICI3SLessee

eO”critig6.457 Usable SLIU ire Feet olOflice Sp4Ice

6~457 Rentable Square Feel of Office Space

IOLUIWtI atI I 22 Mapu napuna Smet. Su i ic 201

[boom ILl, H a~vai 968 19

7f Pfl.tw. ,S1tD~ ~

) ~S

~

]‘AI3LE OF CONTENTS

ARTiCLE I - DEMISE .

Section l..l Premises.Section 1.2 TerniSection 1.3. Opt ion to Extend TermSection LI Option to Cancel or DotvnsizcSectin 1,5 Onici Eniovi t tentSection 1.6 Possession

ARTICLE LW-USESec LIOrt 3.1 Use of PremisesScetion 3.2 Commotu\rcasSection 3.3 Observance of LawsS~etiosi 3,4 Rules and Reujilations..,,,.,,....,..,Section 3 5 Wage Nni sdflt.L or L ~ to! Actit its’Section 3.6 SubletiJngmnIAssi~nmcnt

ARICLE [V HAZARDOUS &IA1’ER.IALSSection 4.1 Lessee’s CovenantsScuton 1 2~Seclion 4.3 Asbestos Mmi;inenitmt Pm!!rnmSceLion 4.4 Definitions 7

4k] ICU V MAIN I I~NANC! J≤LPAIRS AND AL I CRA LIONSScuton 5 1 LLSSCCS M~iiiIILiidi1cL ttitl RLpdlr of the Pt urni scsSection 5.2 Repairs Lw the LessorSection 5,3 Lessor’s,Right of EntrySection 5.1 A I term ions

ARTICLE VI — LESSER’S RRSPONSII3WmES. ___________

Section 6.! l.essee’s RcspnnsibilltiesSect ion 6.2 Liability of 1_essorSection 6.3 Jnswnnce,,,,,,,,,....,Section 6.4 Fire Insurance

~\WrIcLI3 N - RENT ANt) OTHER c:HAROES 2Section 2. Base Rein 2Section 22 PaRing 3Seuton 23 Secunry Dep~jt ‘3Section 2A Real Pmp,~jy ‘fix (RPT 3Section 25 Goner ii r\L.lsc I d\C’~ ISection 2.6 Operatine Costs anti Utilities •1Section 2,7 Conveytince Thx ~Section 28 Oihci C h1naes

‘3‘3

6Ci

66

‘I

884,0

SS

I..1A13!LrrY. ANt) INSURANCE

‘S.

I tItlittFA< Ah R’D. 4ç flfflflw’~ Cf•,~r.n

ARTICLE VII - PROPERTY OF 1~l~SS~.Section 7.1 Properv of Lessee. --.9

ARTECLE IX - CASuALTYSection 9.1 [9re

ARTICLE X - DEFAUL1Section 10.1 Remedies on Lessees DefaultSect ion 10.2 Nnnwni ~‘er . I 0

F

rTiatM, ArPRV,

Mknney O~erd~/

ARTICLE \‘IlI - CONbIEMNATIONSect ion 8, I Conclem nationSect ion 8.2 Partial Talc inc

99

-.9.9

• [0• 10

ARTICLE XI - SUkR•END~R. Nbcpjt’C; OVER . . •. iiScctioii I I I Surrendei ol Piemises I ISeeti on I 1.2. I—lokli iw Over I I

ARTICLEXII-NOTICE IISection 12.1 Notice ii

AR I ICLE XIII - SUHORDINA I ION CS I OPPEL A Ft ORNMLN 1 12Sectmn 13 I Lease Suhoi d;n~ne hi Mortctwec 12Scction 13 2 (hound Least 12Section I 3.3 Aitornmmu, 12Section I 3.4 Transkr Documents 12

AR! IC! C \IV cCNERAI 13Sccnon 14 1 I lmc is ol the Lsscnce 13Section 14 2 I lawab I aw Venue Itirisdit lion 13Section 14 3 E’cliibus — Incot pm mon in I Case 13Scction 14 I Sin ~zu1.u and Plural 13Section 14.5 [Icadinus [3Sect inn 146 Sticci 5501 S 4ind Assions 13Section 14 7 P wt i,d Ins ~iI idas 13Sect ion ItS lute rior.jj~provements 13Section 1—1.9 Americans with. Disaliil i ties Act (Al)i\ I Conipl lance 14Section 14.10 Movjmi Allowance ISSection 14 II Days ISSection 14.12 ‘fax Clearances 15Section 14 Ii Nola; tcd Sninatmcs ISSection 14.14 Entire Aureement: Modifleation: Ececutecl in Counieroarts 15

I~ASK AGItEEMEN’I’

ill IS 1NDENIURI3 OF LJiASE tnmle tin _____________________________ ________________________ 1wintl IILL~S (Ui OLLLO Conitmin tt~ I c It\ isbn I II in non—profit LOI ponhl lOll ~ hose adtlitss is

1122 M il~Li ihiOLl ii S Li tU I loiiol u I u I l,n~ an 96~ 19 lit ama Li calIcO U. sso; and tin. S I A I EOF I IAWA II. hereinafter cal led “Lessee..~’ 1w its Department of Acvommng and GeneralServices, pursuant to Section 171 —30. I lawali Revised Snames, winise-address is IFS)Punehbowl Street. Ilonolulu, F[awaii ~)68 13. for tlw use of the DEPARTMENT OFEDUCATION. Office of Instructional Television, whose address is 1390 Miller Street, Honolulu.Ha~~~aui 9681 3. hereinafter called “Depunment

W I T N K S S K TTh

AITICLK I — DEMISE

se~(~ni I. I Premises. The Lessor in consideration of the rent and covenants hereinaiterI CSCl ~ ad a ill! conta ntd and on tht p ii t ol lit I t~stt I 0 lit paid obst r~ ad and pc lormcd (tOt.Shti tin cit in 1st and It isa tin to U it Ltsstt lit l’i t in ‘cs situate at 1122 ~ laptinapu na St rtt II Joncil u In II rn~ an 968 19, bc ing S ui Ic 201 , c ompi Is i ng ol 6, I ~7 usable sq iaie I eel16 157 tern ableSCILIdI C I CCL is shown on LXIi iIi i at LI itd hci cÁo and made ii p ni bet tol (the Prcmtses~s h 1(11 .11 C located in U it hmlding k flo~c n as I lit OFt In 13w Id i rig ( I ~ I Ic No (I) I — 1—007 0 II tht

Pt 0~Ct 13 i to~tt In.i ~s ith the In tIn izlit n ~ Oil) BOfi \\Ii Ii othc Ltnahlt s ul C In. tin i Iding and Llit IIemployees, agents and in vitees In the Prentises III COIIUIIQO with others over. across, and through411% dL3 s~ ct)lfllflon (nit ahltts atiti (sits loIthits stall ~s ens liii Is tst LILILL’! s t Ie~ aWl s toll idi iiand parking areas in or aroti tnt said PrOI1CIIY.

Sttt ion I 2 I cnn I lit Lt on at tills It ise and I cssct. 5 0 hI ig it ions to pas ilic I enhet eu ndei shill torn nitrite on Dttt inbei I 20 I I uid shall (ci in I il aLt on October 3 1, 2016 till It ss

soonei (ci at II sited as stt foi Eli tn Lht s I tase PR C) VII) LI), I IO\\’ LV LR that sad Li in shall Litcontingent at III Li ines ti Poll tIlt 4% cii lahi liEs and allot rntn L b~ tIn. Un Ct tot ol I he Dep~n ttncnt otl3odau .111(1 I Iii anct ol ~U hI it In ntis Lo I lit Ut pai Ln it III a! t he A Hot nt; Citnt nil and tIn.Depart me in of Accounting and Genera I ServIces to pay such rant.

Notwithstanding anything to the contrary. Lessee shall have an unconditional right toterminate this Lease any time after November 30. 20) 3 with ninety (90) dais prior wr tten not iceto Lessor.

NOTE: ‘I’Iik program (Department of Kdueation, Office of Ilistructional Television)may be selected to be placed in to St a to owned spa to dii ring the (cnn iii’ I Ii is Lease.

Section 1.3 Option to Extend Term. (NONE)

Section IA Option to Cancel or Downsize~ Lessee shall have the right to cancel thislease or ciownsize the Premises at any time under the Following conditions:

a. Should Lesse&s public funding or allotment by the Director of theDepai tment 0 Budget atic! r~ nance ix. t cduced oi cut or

Ii I hc State pt ogt am at iguncy occupying the Pt cmnes Is abolishedtct in tnatcd t cot gani,cd ot clown’,wcd at

t. State ol lice sp.tcc i’. vacant anti available and is assigned by Ike .tppropi tiecut hot fly to the De1xii tment and

ci. Lessee provides Lessor with appropriate evidence of either n.h ore aboveand givcs Lcssor ‘t mmtmuin ol ninety (90’) days Pt lOt \\t itten nottcc toCancel 01 Downst/e

c Should Lescce do~~ nsuc the Premtscs the atea a! the Pt emises, Base Rentand the pt ojiot ttonate sh tte of Opet ating Costs shall he UIUcLCI by thepercentage of’ the Premises-surrendered. Upon iessee4s notice to Lessor ofits intcnhion to do~nsi,e thc Picmtses, Lessot and Lessce shall e\ecttte ananiendment to the lease reflecting suCh cl.mnges prior to.

It is further understood thai once Lessee has exercised its right to cancel, said notice isirevOeable~

) Section 1.5 Quiet Enjoyment. Upon paymeni by Lessee of the rent hereinafter reservednid upon obsci vance anti pet fortnnncc of the terms covenants and conditions hetein containcd

and to he observed and petfoi med by Lcsscu, Lecsee shall peaceably hold and enjoy the Pietniseslot the term and any e\tenston’, thet eol withotti lunchanuc ot intet t uption by Lessot or any othetpet son l.t~vfu Ely ot equitably claiming by tIn ough at undet the Lessot escept as bet eta othei \VISLexpressly provided,

Section 1.6 Possession . .L~ssee has possession of the Premises.

ARTICLE 11 - RENT AN!) OTHER CHARGES

Section 2.1 Base Rent. In eonsidenttioh Of tins lease, the Lessee agrees to pay the Lessora monthly base rent (operating cost of 5.241 per sq. Ft. is included in base rent and shall besubject to review and adjustment annually) for the Premises as follows:

Deccmhcr I 2011 No~cniber 30 2014 513,236 S5 ot ~ippio\ S2 05 pet usable sq ftDecember 1.2014 October31, 2016: $13,753.41 orapprox. $2.13 per usable sq. ft.

in legal tender of the United States of America, payable monthly in advance on the first day ofeach month to ~OLELO Community Television (Federal ID No: 99—075429) at 1122Mapunapuna Street, Honolulu, Hawaii 96~3 I 9 or at any other place the Lessor in writing

I ra~tt~~ tsrwn, I

2 j~ :%~i

may dcxi gnnic. on the days and in the manner afore.said withon t any deduct ion and without not iceor demand; and that if any installment of rent shall not be promptly paid V.’ hen due or withinthat)’ (30) days thc rcaficr wit sI ial I be~u situp Ic i net c_st at tilL raLt of ti_n pci ti_nt Cl 0~ ) pciann ti in front said date tin dl paid.

Lessor expitssly waives any interest or late charges, if any, for any late payments ortinderpayments 01’ rent or any oilier charges ptior Ia the exectition of this document.

SIioulØ the commeneen tent date precede the date of exeetli ion of the lease document, allLent duc (as adjusted pet Section 1 5 hetein tl,ot i_ ii tpphcahlc) shall beconit due and pa~ ihIt anthe date of the executIon of the lease. All rent due in arrears shall be paid by the Lessee withinforiy~iive (45) calendar days froin.the date of the execution of the lease.

Should there he a change of Lessor, an aiiiend cat of lease reflecting such change musthe executed between tite Lessee and the new Lessot~ and the new Lessor must provide a current

ix cleat ante Pu Section 1$ 12 ‘1 ts Cltat ant_es ietcinbelow hal ate tent payment can be made tolit new Lt_~sot liii nat i ant pavmt otto the nets Li, ssot sh tI I ht clue w itlu a cixty (fiG) days d (ci

the execution of the amendment to the lease.

Section 2.2 Parking. Lessorshall provide Lessee with twenty one (2!) autotitohileparking stalls located within the Propetw for the term of the Lease and any extensions thereaftera”~ cit_It neatcd on Cs hihi t “13 all athcd hi_i do and made a pat I lici to I he Lcssor t esi_t c’, hittight to adjust the pat king chat gcs at L_ssoi s sale di sc_t elton at an~ Ii mc a Itt r tim t~ (30) claysP~ tot wit Lien notice I hc pat king ch1u ge sIhul I hc due tad payahlc in td~ ante at the same t i mt.and place as, the rent. The parking spaces shall be’ assigned by Lessor from [line to time, howeverLtssor sh~’ll CMsetsc good truth ucLisonablc c hot ts to niatnlaun thi_ contiguity of Hit Lessce spat Lung spaces I lie parking stalls tie to be contuactcd and paul mi dttectly b~ Lessee semployees and non—payment by State employees slntll not constitute a dci an] t under this Lease.

Section 2.3 Security Depç~it. No security deposli of any kind shall be required to bei)aicl by Le,qsec.

Section 2,4 Real Property l’ax RPTL Lessor shall he liable for al real prop~~’ty taxesaffecting the Property.

Section 2 5 General bscise I axes 1 ftc Lesscc sh,i II pay to the Lcssoi as additional i eattoather with tacIt pa~ atent of i i_nt 01 an~ aLl li_i ~ mt_nt cqu ii_d hc_t t. undi_i ‘a huit is su hp_ct tothe State of II await ge at a] excise [as on gloss ttit_nint a i OSS Inc unit. tax and LIII 01 hei si mi lattas Cs mposc_d on the Lessm on the i c_nt at at bet pa\ meats in I lit maut t Of t gi Oss tett upts taxSLI li_s tax prtvilcgc tax at [hi. I ikt (i_st I udi ng Fi_du U ni S talc. of H ~tw a it at t i attn lit t a \ts),whether imposed by the United Stales of America, the State of Hawaii, the City and Count5’ ofHonolulu. or any other duly authorized taxing body, an amount which, when added to the rent orat het p1tyn~nt shall vu_Id to the I t ssoi aiwi deduti ton of LIII tas i_s p iyahlc by thu Lessot ‘a tiltrespect to all payments. a net amount equal to that wh Mi the Lessor won Id have rca liz_ed from U iepat’tiietil s had no taxes been imposed

[ c~,onnv~ni 01 IS.\ ~o’omai G*n~crtt ///

Section 26 Operatinu Costs and Utilities, Lessor shall he solely rcspons~ble for the totaloper illng costs of the Pt opei ty wit it Ii sh dl include ~ i itt out limit it ton .tll costs ol any kind p’uctot inuurrcd by the Lessor in opei aung cit ining cquipping ptotccting~ lighting c_amman ,W(_,Lclecu lcd>, i cp~uri ng inanagmg p nstii i ng t cjhici ng and mamtat mug the Pt operty mcI itch nglIVE IIILII utility service costs .tnd iii canditionitig c\LCpt tot charges spec_i tied in Suction 2 $hei cinbclo~ Phese costs shall I nd ude .i 1 u’isoii,ti) It I LSU ~‘I2 lot i epati and i eplacement 01Iandscapi ng and CCjII pinent ii sed in the maintcn,ince .tncl Opci at ion a I the Property Opei alt ngcosi at $ 2 I put squate toot (tam intitidis liliKlSLapt/IflJIilttiidhitC, build tug msui anti,habilit) insurance, i ep in !mainlen mci, watet .tncl .tdmnusti ation eosN ‘.s Inch is i nchidud inbase rent, shall be sub ject to review and adjustment annually with proper justification andverification showing conil utation of increased cost.

Suction 2 7 Cons avant_C I ct\ Lcssoi shall be solcl3 t esponsiblc fot any Statc of I law anconveyance tax ~ hich may he payable as a result of this lease.

Section 18 Other Charnes,

(a) Electrical Use As shown in Exhibit C° the Lussoi has ,ttb—nietcad thu dccii it_alsupply to the leased Litea Ii ighl ighted in yellow I eS’\CC sh~il I I emihui se [hi Lessor foi Lcssce selectrical consumption lot the sub—metei ccl leased Premises on .1 ntontlil3 basis and shall pay toLessot within thirty (30) days at let hilltnn, thc cost 01 the electi icily used fot said sub mete edleased Pic_ni Iscs LCS5OI to pro’ ide the lollowing (I) any changus iii the existing dccl teal singleLint diagi am lot thu stibjtu butldmg showing the dccli Ic panul boards which set vt_s thu subjuctLesscc 59)1CC identified (2) ans evised elecincal suwle hue diagiain chowing the new sub—mulct’s toi i evew and comimnt by the Lcsscc At a mmimwn the single line diagram shouldshow all panel board fecdci s that sc_ne thu suhlcci Lcsscc .iiitl thu scheni,itic. location of Lissot ‘smeters, Currently. the established percentages tar electrical consunipti on are astollows:

Meter #t — MCCL at 0.88 perceniMeter4~2 — H2A at 0.75 percentMetc’r.#3 - L2Aat 0.8$ percent

(b) Overstandard Lessee Use: Lessee shall not ~vithotit Lessor’s priorivritten consentuse heat gent ating m,tclt i tics machines othe t han not mat ft act tonal Ii 01 seji~wei oil icemac hines oi cqu tpmunt at lighting othe I than biti Id i ng standat d Ii gins in the Pi cmi scs that mayat f&i the tc_mpercittuc othei wise ni~untainccl b3 the an —conditioning system 01 incruase the waturnormally furnished to the Premises by Lessor,

It sin_li consent is gis c_n Lessot shall have the tight to install supptementa y a r~conch honing till its at otheL I cit ii it es in t lit Pt elitists i neltidiiig sti~) leniuntat y ci additionalmetering do; ices On billing b3 Lcsso Lcsscc shall pay thu cost lot such supplcincntai)I aci I it us intl tiding the cost ol (a) mstal hit I on opet au on intl mat nienance (b) increased v.e~u andtear oil existing equipment; and (c) other similar charges.

4nE4JM iarnl’\i n<.c inwot I

Ii Lessee uses wntcr, electricity, heat or janitorial services in excess of [hat required to hesuppliecl.bv Lessoi~ Lessee shall pay to Lessor on billing, the cost or (a) the excess service;(h) instal huton, opei alien and maintenance ol equzpnicnt instal lcd to supply the e stess stA ittcinci (t) incteasc weai and te~u on L,\ isting equipment eatistd by Lussee s excess consu mpt ionLessor univ install devices to separately meter any increased use. On demand, Lessee shall paythe increased cost directly to Lessor including the cost of (he additionlil metering device.

0 LhCL nUll—i cntal thai gts (I C. sign kc) s) ~d3 ~ib Ic by tht Lcsstc sh ill lit NJ lcd LII ICC. L ly tothe Departn ent, at die Premises.

ARTICLE UI — USE

Section 3. I Use ci’ Premises. ThePrenuses will be occupied and used by chic Departmentoh Education Lessee w LI mci usc ot ~Ui iii ii Lu Sit II ci (lit tist of tlit Pi cmi scs i in any oilierbusiness 01 flu posts v. mihout I hc wi mdcii constnl of the Lessom , which consent sli.ill not heunreasonably withheld. Lessor and Less.eeagrc’e (lint (he use of’ the Premises by another staleagcncy shall not be a change 01 OSC ol Ihc Premnists undet this Section and shall not itqti He1_essoris consent; provided that there k no signilicatut change 01’ incrthñe in lhe use of Premises.

Scction 3 2 Coinnion Au c is I hc common di cas slial I consist of tl I at eas desig itated loicommon use ci bcnei it including u i Lhout I an Li ng tile genet .iltty of the I oregom ng delt’ civate is cut 1s, di ains, ~vah kt~ tINS, in ills, at cadts cot ridoi s hall” ays gal duns I andsc iped andVacant til tds and public I citi lit its such as washrot)ms lou ngts, to IILLS, clrinknig I ouniai n sshehet s escalatoi ~ clc’~’ fim s, stan s and i amps Lessec and its ciuplo) ecs agtnts custonucrs andin vitees shall Ii t~ e thu uight at U I (tints dining Lhc tt un subject to appi ic~Lblc i tiles intl i ego tLt~

Lions ml tns’, made by Ltssoi and as appu o~ td by tht Lcsscc as herein pros ided to flit itasonableuse ol the common di cas in toflunon v~ i th Lcssoi and othet s cntitltd to usc such areasPROVIDED, I JOWEVER tliaL Lessce 5 cnuployces shall not lust’ the common ai CcLS IOi parkingol their own vclncles unless pto~’tded hcicmn oi othci wise spetil tally agreed to in ~vi mnng byLessom and Lessee Lessee t~ ill not .tt any U mc use hit common aLeas lot iW. displas 01 storaguof ciii) mci chandi se ci cqu ipincnt ~ i thorn flit ~ ri I Len conscnt of die Lm_ssoi ~~‘h tcli shall not littini’e~tsonLlb[y wi thiheld.

Section 3.3 Observance oh’ Laws. 1~essee will at all times during the term observe andcomply with all hns s oi cI inducts and i tilts and m cgulat ions now ou lici ci na [icr madt by anygovct n nutnt al an [homily and applicable to Lhc otcu l)~ILic) Dl usc oft he Piem 1525 Di t lit conduci ofany business therein or to the use of the common areas.

Section 3.4 Rules and Reaulations, Lessor mas’ fi’oni time to Lime adopt or amend suchi easonable t tilts and i cgttlations as Lcssoi dcems necessau y om desn ablc hom the opti aflon cii useof tht Pi em iw~, such as but not hi nii tcd to (lit usc ol lie tO liiiflOfl cli tcLS md cull itt mu ittei s ~yli it Iiiii a)’ bt ol burnt it or pm otteHon of the Lcss 1 anti Ilit Lcnant s PROVI DEl) flOW EVER, that therim les and regulations shall not he inconsistent wi Ui the terms, covenanis and conditions of’ this

I ?2.EUM id’rWU~I Doport;~W ni ~{ ,k~t

~A!iOrfluy GQnarttJ

lease and to I lie extent that the to les and regulations are inconsistent with the terms, corid itionsand covenants of tIns lease, then the Wrins. conditions and covenants of this lease shall control.The Lessee shall observe and comply with said rules and regulations.

Section 3.5 ~3Ljiste Nq~tnce or Unlawlu(Activitv. Lessee agrees that it will not cniniiiitor permit any waste on, the Premises, or maimain or permit to be maintained a nuisance thereon.or use or i~rnhit the Premises in he used in an unluwiul manner.

Suction 3 6 ‘sithlcti inc tnt! Assian mum 1W. Lcsste WI itS III it nuttlic i thu Pt twists 1101tin3 p itt thcreot sh.il I hi. suhlct mm tg4igtcl ci ass ignutl not ~ull th~. Lcssce part w ith t litpossession ol the ss hole ot any p,ut thu ruol without thu tonsen t in witting ol the Lussot Iii stha~ ing been obtatnud \s hidi consent shall not be nut easonabl) i~ ithheld Lussni ~tnd Lesst c.nit cc t h,tt the use ol the Pit, mists by anoll iii ‘a ,itc agency sh.il I tiot LOiN LtLItt. i11 155 ignmcnt tnsubletting ol the Pt emisus by I essee to the othei state agcncy arid shall not icqu tic Lessot sto nst nE dntl shall hi 111)011 (lie SW Ut. tti ns intl quitli ([015 contat nud in this List, pi tn idud thatthere i~’ no increase in the use of Premises.

AIUI.’[CLE IV - HAZARDOUS MATERIALS

See’tiOn~’L I L.essee~s Covdmüns. Lessee shall not causO or permit the escape. disposal ori elease 01 fiN hi, ii doti S tll~itti I al S in or upon thu Pt cinises Lessuc shall not all o~s i lie sUn Ege oftise ol such wait n ils in any in in nut not sanctioned bs law ot 1w thu Ii igh si st indards pies at Ii rigin the indu’str icr the storage and use of such materials, nor allow to be ‘brought i ito thePremisus an~ such materials c\uept to use in the oidinan eciul s~ ci LesseCs business LIUCI thenrun) titet Wi ittun noW..c is gn in to Lessot ol thi idcnutv of such niatunals Il any knder orgovernmental agency shall ever require testing to ascertain whether or not there has been anyeleasc cii hann dons niatci tal s b~ I 055cc then thu i caso nable costs thin to I shall be itt nibursi d

by Lcsscc to Lissut a pun dci tia nd as additional ch~u ges it suth I cq lilt unient appi its to thePrcmtscs [n aclilt non Li SSU. shall e scut tt. al hda~ ils z ipi cscntat ions dud t he like Ii tim Li inc 10time at Lessot s request toncuining Lissee’s bust knoscledgc and helicl reg uding thu pitsuncu ol

hazardous materials on the Premises placed or released by Lessee.

Simon I 2 Lussot s Rupi sen tations \Vai I tnt ics and ON I nat ions Lussot i upi usuti ts and\~ at taiLs to Lissie t hat Lessc n has no ltah t hi ty a ndei hits nevc i violated and is pi esmntly incc mph tance with .dI envi i onmental I ns s i cgard rig I i.ti at dous in iu~t t abs applicable to the Pie ni sesand the Property, and to the hest of Lessor’s knowledge, them does not now exist or ever existedciil3 un~n onnuuni a! condi non rulati ng to ha,ardous materials on the Pi emise oi the Pi opt Itye \ccpt as set lot Ui m L\h iii it ‘‘C as itt ci inca! in Suction $ 3 to I ol ln~s ‘~ tlii n mnet) (90) cl a~ swhich will be attached hereto and made a part hereof.

Lessor agrees to indenint fy and hold Lessee harm less l’rotn any damages or claims froman~ uris iron mintal to rid i lion ot ‘, in Ian on ol an~ ens n on niun tal lass s it. stt lung (tOOl I he a su iii

placement of hazardotis materials on the. Premises or Property prior to the lease cotninetieetncnldale even if not discovered miii I alter the lease bias corn mencecl. ‘Ibis indemnity .chal I survive theIc ise tat inn ition ci itt mci shill lit I Li iddi Uon to Lessot s ohl Igauons tot hit, icli cII J1&4j10\ C

I ~pi e~u n tat tons and ss an ant Its 7II taruM, ,AVPifl1~I Dçaatneiii u4 np~

S \ Au tn~,y

l_esscr further agrees that compliance With UIIy laws regarding tishestos (inelLidinsa theCost Of removal mitt restoration of the Premises therehftcr) is the sole responsibility of the Lessor.

Sect inn I 3 Asbestos M tnii~cnicn t Pt mn a In Wit hi a ii mety (90) clays ft urn tlic. c \cc tit tonof this document, Lessor agrees to conduct an asbestos survey 01’ the Premises by an independenttccreditcd asbestos Inspectoi ci managenicnt plannci ni stibmi 1 a statement 01 cqut\ ~ilent

disclosure, Exhibit “C,” In hi low within ninety (90) thtvs, which will be attached hereto andmade a pai t bert_al lithe sun ey ci disulosut e identities asbestos contain int~ rnatei iak (ACM)and the ACM t~ not removed prim to Occupancy, the Lessot 41 ct_s to appoint a building m~tii~ciwho has received in ten eclttcd asbestos t iain ing to dc~ etop a wi itten opet at ions andmaintenance ~l~n fot’ the propereare. inuintemince and handling of the ACM: to provideacci edited asbestos ti ai ni ng foi custodians i epai i and mdi nten alice pci sonne I to ifl ioinioccupants, maintenance and i epall pm sonnel whew ACI\ I ate locatcd and now I’. them rcgarclinizthe as ai I aN lay ol the sut cy I C~OI ts Lessoi lot thai agi ecs th ii compl I duLl with any I iwstegat ding asbestos (including the cost of L c mm aT and i estoi Lit ioij of the Pi cmi ses (bet ealte, ) isthe sole respo~itiiliiy of the Lessor. When ACM within the Premises are to be abtitod, it shall hepot tot mccl in cotilot mancc with thc I cdlancincnts spcci it_fl tn tlic Asbestos I laeat ck Duci gciIcyRcsponse Act Acm ccii ted me ins Cl u,t hI ied ihi ough a ~ ogi am oi corn sc tip~i cn ccl by thcl3nvironinonutl Protection Agency.

lfLessoi I ails to comply with the tei m~ of this sccuon in the cqutsite timc pci tod Lcssccshall have the iigbt to turn in alt lb i ~ Wise “ i thUut pella it v, v. ith ft ncty (90) ci Iy’S p0 ni WI I tiennotice to Lessor.

Section 4,4 Definitions. For the purpose of tlik iea~e °haztu.dous material’ shall meanany poi 1w ant toxic substancc 1w at claus \\ aste h aiai dou s matet al haiai dotis substance ni oilas cleltited in ~I PUflti,lnt to the Rcsotti cc C OIIsLL v4u inn and Recos ciy Act as amended theComprehensive Environmental Response. Compensaflon, and Lhtbility Act, as amended, the1—edet at Clean Watet Act ot .my ol hut It_cit_i at statc ot local cnv iion i nental lass t cgu Ia Li onat dinance zulu ot bylau ~thcther c’a sting as ol the daLE. lit_i cot r”— tously etut 01cc tl ot sttbsc~quetjtiy enacted.

ARIICL1~ V - MAIN I ENANCE RCPAIRS AN!) AL] ERA] IONS

Section 5 1 Lessce’s Mainten tnt_c antI Repan 01 the Piemises I lit Lessee s~ ill at its os~ iicost clut wig the tet III 01 this Icase and any extensions theteol ket~p the Pi Cfl)IScs in a good and saltcondition i e4isonahli. use intl weal and It u and unavoidable casualty exceptcd Lesseesobligations, under this section, dci not include strueiural repain. commoti areas ot the Propc’ry.Hid 11 ii ut ii ‘a cat, dcc_~n oi ci image by the elt_ment s at othm casualty (otcui ii ng ‘a about I au it at

the Lt_sscc ot oUci persons pu niatcd by thc Lcssee to occupy ot entci the Pi einusts at any paiflit_i eol ) \ lai ntcihtncc and t cpan ol in tc riot glass w tt Ii in thc Pi em I ses is the sole tespo nsibi I tty ofthe Lessee and any glass broken during the term of this lease is to be promptly replaced by and atthe e~pensc of the Lessee with gI iss ol the s,tme si/c kind and dhtt~tl 1W on less caused by thcnegligent act ot omission oi the Lessoi 01 ii’, ,iuihoi i/cd epi escntat,ves

7 rizatiM. P2PRt, \

)Section 5 2 ~p lit s 1w the l_ecsoi I he Lessot shall keep the common ~ti eas and the

sit ucttn ti integn (3 of the Piopet 13’ in good conch (toil ~mcl top iii timing the teL in ol the In iso I heI cssoi shalt dii gently pi occect with my i ~p iii s all outing Or cati sing set ions threats to he tI [ii intlsat ely no I ~flci (Ii Ifl tIn cc (3) clays an ci no latci than diii IN (3D) ci tys lot othet I epa us ii let ~vii hunnotice by Lessee’. Ii’ Lessor fails to make repairs in. the requisite time period. Lessee shall haveII it might to i upat i and oft set ~,aid cOst of I ejilil 5 fl 0111 the monthl3 ient at itii mediately denlanclmonctaty teimbut sement in legal teiiclei of the United Stales of Amei ~ca Ii otu the Lessot winchshall he paid within fi~’e (5) c,hiy~of said written cleniand by Lessee~

No compensation or ~lmum will he allowed by die Lessor by reason of inconvenience crannoyance at ISI ng ft oni the neccssi ty’ of i cpami lug a] ten ng, 01 unpro~ ing ttn3 portion of thebuilding of which the Pitinises hereby leased iIIC a paiL. however the necessity Inn)’ oce~.

Suction 5 3 Li~SSoI s Rwht ol Cnn y I ic Lcssec will ~il low thu Lussot ,tncl thu agents ofthe Lessor, at reasonable timesiind upon prior notice, to enter upon the Prenlises and examine thecondition thereof antI to make repairs thereto.

Section 5.4 Alterations. Lessee will not make any alterations or additions wntisoever tothe Pi enuses wtthout Inst obtaining Lcssoi ‘~ wi itten appi o~ at of the plans and spec.i fica; ionsthereof, which shall not he’unreusonabiv ~vithhelcL

ARIICLEVI LCSSCE S RESPONSIBJLII [CS LIABILITY AND INSURANCE

J Section 6.1 Lessee’s ResøonsillilWes. The. Le~sce shall he responsible for injury causedh~ the Lcssce 5 oil icci s and employees in the tout se and scope of then eniploytnunt to the estemthat hit Lc~ssec s Ltabd tty lot such danugc o flJUi 3 has hucti duci mintd by a cOurt at oihct ~ 1Stagi ted to b3 tile Lessee 1 Lie Lessuc sh ill pay foi such clamagc and injut y to the e\tent pet mi ttcciby law provided that an appropriation is enacted for that pttrpØs.e~

Section 6.2 Liahiltt~ ol Lessor IlK Lcssrn shall not be liable to the Lessee lot damageto pci son 01 ~I Opel t~ 4! iSI ng lot any it ison, cxcept that the Lessot shall be liable to the Lesseelot ci unage to (hi. Le~sec I es tilting It out Lhc ncgl igunt at! 01 omission 01 ihc Lessni oi itsauthorized, representatives,

Section 6.3 Insurance, Lessee,. us a sovereignty. iS self—insured and thcrclhrc insurance,including but not limited to public I tam h ty pi opel ty damage hi e plate glass, and busmcssinterrupt ion insurance, is not required.

Sect on 6 t e In sui alice I he Lcssot , cmi lit t sup a atel y 01 thi ough an association ofownci s ~sill cat y tue and extended covcm agc instil ante on the Propet ty of \~ hich thu Pitmises.1k. a p at I he I nsu i ancu S hal I wvct the sit ucttmt aT pm Lion of th~. hut Id t ng plus all st uctut a!Improvements constructed by the Lessee, To (lie extent that coverage ot’ Lesse&s’structtiralmm ci~’ciiiu fl~’ ~ ~~ ~b’~ tlistij alice pm c mitt in othei wi SC payable b3 I he Lessoi Lessceslia II upon demand t ci mimi se t hc Lessor lot the inc i cased cost I he tei in ‘st i oct atimprovements” as used herein shal,l not include ‘i mdc fixtures.” ~/‘ N’

I~tj

G.~i~a~d

8

ARTICLE VII - PROPERTY OF LESSEE

Scetloit 7~ I Efl~perR’ of Lessee. Al I personal property of any kind or descriptionwhatsoever on the Premises shall be at the Lessee~s sole risk, and the Lessor shall not be liabletot any damage donu to ot loss ot such pcrsonal ptopert3 01 clam,iac at low ‘,tiflciud t3~ hitbusiness tW OccUpation a] thf_ Lusscu ansi og Ii OHI $113’ act ot itcglcci ol cO—tcnants ot othetocetip itits 01 thu bU I Icli iiti Ot Of Othc I pet sons, lioni bur sUng o~ oil towing, cii leal tog 01 W actgas seWu 01 steam plpcs UI I toni any hstutus cqpli~lrlcus at &~ ILL S uonncctcd to nttllc CI U oiiic Iccn ic. condo It, wit c,s I I \ttl rcs appi ~incus ot clet icus o Ii am clicinicals on bactct I~L or OIOI S 03

caused in any other manner whatsoever unless caused by thenegligent act or omission or Lessoror its authorized representatives.

ARTICLE VII! - CONDEMNATION

Section 8. I (kuideninmion. In the event durin2 the term, of this lease or any extensionsdiet co ¶ the Prenu sos or any pail diet oaf shall he taken at condom ned b) any ,Ltlthol fly Iii’ tag thepowut of cnn nent domat ii then and in such c~ tnt this least sh ~il I cease ~rncl Iermiijate as of thedate Lessee is iequi ted to vacate the Pt emiccs and the tent tesel ved shall he .tppottioned andP~t~tl tip to that date All compun satto n and damages p tyablc I 01 01 On account p1 thu Pi emlscsand common areas .intl the Pt opet ty theiLol c\cepi lot impm~ enients COflStl tided 01 O’.\ ned 1wthe Lcssce, shall hr. pay able to and be the sole pi opet ty of the Lesso; 1_essee shall becompensated lot all smpto~ ernents consti outed at tn~ nut by the Lcssee I lie Lcssee shall not hr.entitled to any eltilin against the Lessor Ibr condemnation ci or indemnity for the leasehoklinterest oP the l_essee~

Section 8 2 Pat nal I ala tie In cast on lv part ot tlic Pt cm iscs shall be so taken atcopuleninecl, dir. rcn t diet c~Wiet payalle lot the UflC\~I ted rcniai ndu ol tiic Let in shall bu t educulin the same pwpoi hon that the area of the Prcnnses so tat en ot condemncd hcai s to the tot ii at c iof thc Pit mists berthy dun iscd PROV 11)1:1) H OWLV FR that enhet patty has the i iglit totci on nate tills lease at its option ni thu c tnt ol a i’ai ti allah tog ol at [east 25’f> of thu Pt tint seswithout fur her obligation under this lease.

ARTICLE IX - CASUALlY

Secuon 9! Fire. The Lessee shall in case ol fire give iinniedinte notice thereol ~o theLes~oi and iii c thC thu Pt cmi ses ni i lit building and oth ci I mpi ovement 5 in wh n.h Ihr. Premisesare located ate total 13 01 p oH ill V destros cd on dainagcd by Ii IC 01 at het c at so as to r cncle thePrc in ists or the Ni titling and othci inipt mc inents in u Ii icli the Pt cmi ses ate located tot ~il Iy at

P~B hal ly inaccessible or ti nusabl e on 11 ntenanlablc ion a p.~i rod c~\ccCtl trig one hun died tv enty(120) clays (lien this lease may be tenuinaled at the option of cit her patty hereto; unit if thePrcnns_s OF I h(. htiildt ng and othci tiii~3i ()\ e men is in V. Ii ich the Pr enlists tie I ocatcd are damagedas d at esaid 50 Ls to rendet the Ptem ises on thu bti tIding and (1 thet I flipt m enitnI 5 III V. Ii ICII tilePremises are Located totally or partially inaccessible or unusable or untenantahie Ibr a period of

/~~ .

(PH~’wA. ,sprwnI t~,Od ~‘t nlr~,

~ay ~

more. than sixiv (60) days but Hal exceeding one hundred twenty (120) days. Lhere shall be anabatement of filly percent (50%) of the baste rent specified in Section 2.1 hereof during theput intl the Premises cannot lit nan pied that ii the Pi UfliStS can not be occupied .ts at at usLud 101a period of less than sisty (60) clays. there sluil I he no abatement in rent.

It hc 011 C) —live IICI cent (25%) or IDOl i. ci the i uttahlc .ii c~ of the building oh ~vli n.h thuPreinists fat in i p at cannot lit oati pied due to ire oi (libel c isual ty cu ii tbc Lcssoi is ii nabic toobtain a ho ildi ng pci mit to I cpa! i any pot t ton of the Prumi scs which IILL\ e heeti damagud b3 I neor othu casual t’, ot winch ha~ u ban decharud ii usant La i v or unsaic by arm’ go’ crnmc ntal agunc)or authoiity. then the Lessor may cancel this lease, even though the Premises may not bed .imaged \\ ii tten notice a! c incelliti on slial I be gi~ en to the Lessee wuhi n thu i Cv (30) days atteisuch d .image or dechu it ion by civil atithoi ii y uxi thu caftei t hi. Lessue sh.tl I tin niudtatc Rsurrender possession.

ARTICLE X — DEFAULT

Section 10.1 Remedies on Lessees Default, This lease is upon the express conditionthat, if Lessee .sluilI jail to pay the rent hereiwreservcd or any part thereof as the same becomesdue ot cli ill I iii to faith! Lilly ohsei ye and Portal Ifl my o.thei tel in co~ enant at condition oh thusbeuse~ ir shall abandon the Premises.. or shal l:suffer this lease or nny estate or inierect hereunderto be taken on e\ecution, ci shall suit er any nieelianie’s 01 matci talmens I ten to attac Ii to saidP1 umises, and shall f.ti I to suture thu di schai ge Ut i ulcasu thu cot within a reason able time a! tetthu ci It iv of any udgmunt 01 Ui dt.m 01 a con it of r.omputen t jm tcd iet ion icr the I oteciosu it. ciicj them endot semeift oh the lien antI the hteauh ci cIa! dolt shall eon till tiC Wi a put icd ci tlii i ty (30)c1~t>s atwi dcl tvei y 01 d WI then tint ice 01 any such bteaeh oi default by penoiial sur. iceI ugistCt ccl mail ci cci Ut icd mail thcn I H that evcnt, 1_cssni ma3 at once i ccii tei the Pi em isec anti,upon 01 WI thottt thu unli ~ • at its option tunni nate this least without any further set \IuL 01 notu ccor legal process. and may expel and remove from the Premises, Lessee and those claiming tinderit and its ctfccts and Lcssot may stoic temme and dispose of any ot Lessee’s improwmenis orpci sonal pi opel ty at Lessu&s c\pcnse and may dicn ci at an~ (mie betci e 01 tliia e4tltcr hi mg anaction toi stuiimai ~ possesstcn of ‘,cud Picimses all without pi eluclice (0 any othci temucly oiitght ci act ion W1i mcii I cssm may li,i~ i_ 101 1t teal c client ci ot hei hi each of con ti act,PRO VII) El) HOW CV CR that ii thu natu ic oh thu del 1tul I othei Chart nonpaymcnt oi I unt is suubthai the Sd 11W tdii 1101 be i eason tb)3’ Ct! ted within a fin I ty’—day pet toil Lessee shall not be dee medto be in default it Lessee shall, v. it hi ii thu pu md corn nicnce a cut u anti them cal Wi dii Igu nilyprosecute the same to completion.

Section 1.0.2 Nonwaivci~ The acceptance of tent by Lessor or its agent shall not hedeemcd to be a waflL, h3 it of any breach by Lessec ol any t.o~cnant contamed heietn or ofLessor’s righi to reenter for breach of condition.

f Paait.i, APPWD.Onr,~oI ci

10

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‘l’r) the 1_essor at: 0L13L0 Comnuinuty TelevisionI 22 Mapunapu na Str~_et

Hanoi u hi, [lawn ii 968 19

To the Lessee at: State of HawaiiDepartment of Accounting ~indGeneral Services, Public Works DivisionAtm: Lease No. 92—16-0433liSt Punclilrnwl Sweet, Suije 4~9[tonal uiu, Hawaii 95$ I 3

ARTICLIt XIII SUBORDINATION, ESTOPPEL, A]~FORNMENT

Section 13. I Lease Suhorchmae to Morhuwes. This lease shall be subject andsubot dinate to cut hcn of any Inot t~a2e iii any amount or amounts whatsoe~ ci now e\3stifl~ 01her ea ftei placed on the Ia oct antI bu itch ruts of ~\ Ii th tlic Pt misc.’. I orn~ 4 ~4I t VU titotit Ut.necessity of any other mstm unient 01 act on [lit. pai t of the Lesste to tffectuate the scdn dmationp1 ovided the moi tgagce named in ~ny 11101 tgage shall agree ihtn iii tin, event ci for eclosure it willnot join the Lessee US a par iv dtfenclant in hit I oreclosu iC action and ~~rIi not take any action toicr mniate this least so long ~is the Ltssee is nor in default heteunciti rhe Lessee covenants andaerces to execute and deliver upon denianci a further instrument or instruments cv idencing thesubor di nation ni liii 5 lease to thu I ten or aiiy ruor (gage Or moi tg 1ges .15 may be I equ ned by thc.Lessor.

Section 13 2 Giound Lease Lessee shall not tic icsponsthle to pa~ any gi ounci rents orground rent increases or master ground case payments or ground Idase increases to Lessor.

Section I 33 Attorriment. Lessee agrees to attorn to the ~signce. tmnsferer~, or purchaserof Lessors i Ifterest (mm intl at tci thc date of notice to l±sste of any assignment transtci 01 sale,in the same manic m and ~s oh liii sai flu. or cc and t.fl ui as i bough thus hcasc ~vu e made in tlic.hi st r nstanct. by and bctwccn Lcscee and ; hi assigoct t 4tnsfu cc Or ~LO chasci II anypi oceedmgs are institutuci (or tot etlosui c, oi in the tvent Of the C\er cisc ol the J)O~\ ci of saleundei any iuortgagc or deed ol ii ust made by Lessor co~ ci mg the Piopet ty Lessee shall, uponLcssor s i equcst attn in to tl ii par chasci upon ciri)’ for ccl ostu C oi salt. and i icogn I a tin ptm rd tast. ias the Lessor tinder this lease.

Section 13 4 I ransfer Documents In the cvc.nt of any such salt assignment mortgageU ansLi or hypothccatmon I essee ss ill ptornptly isceur it any and all documents including ha I nothr rutted to consdnts and (nit. .lrld accni aft estoppu.l LCL I Ifitatus, 45 11143 lit. &eincd ncctssai y to mitttransaction by the Lt, ssor fli nbc; in the event that mi any business pimi pose of Lesso I it si ml I hinicessar v lot Lcssoi that Lissee e\ecure cloeuincnts including but riot limited to consents andcstoppcl ctrti Iicatc s. Lessee agtccs to e\Lctute any arid all of sap ci documents, pi ovideci only thatthe documents accurately antI truthfully reflect the mutters contained therein,

I{ ti tQrlr~WMnt ~!\AcmuYGr~n~it~t)

• 1.1

12

iIie l_cs~ee shall upon and after written not ice, received as designated in Section 1 2. I actupon the requested document. •I’he Lessee shall respond within the lime period of ten (ID)business da\s or such ackli tional U me period the Lessee may request.

A RTI Cl .K XIV — (WNRRM.

Section 1.1. I Time is of the hssence. Time is of the essence in all provisions of thislease,

Section 1—1.2~This lease shall he construed.interpreted, and gcwerned by’ the .law.~ of the State of llawail Ihç venue Jor any judicial ad innt% nit rt.spci. t to iii is ILaSL sihil I be in tin. county 01 L tt~ .ind county in ~ h ich IlK Pm opt~t ty issittictted All n a Its 10 dl is 41 tement slia II subm t in Hit Jul sd Itt lOll 01 tht Si ale Cou its of t h t

State ul’ hawaii for all purposes relating In this lease.

Sutton I 1 3 F’. hi bits — Inc om pot U ton in I e ~e, All e’.lnbit s i lflLi n_cl tO .1 It ~itt4t Ited tothis lease.and hereby are deemed incorporated In’ reference.

EX 11113 A” Floor. PlanEX 11113 IT “13” Parking PlanC\ 1111311 C~ \sht,stos Sm~ cy to lo1Io~c wnhtn ninety das sEXFIII3 IT “D” Submetered Area of Premises

Section 14.4 Sinuulni’ and Plunti. When ttqtured by the context 01’ tins lease, thesingular shaLl include the plural.

Section 14.5 Headin~. ‘ftc article and paragraph headings herein are inserted only forurn emdncc ~tnd n_I ci cnte and shal 1w no w av tic hue dcsct mbt, 01 htmi Ihc scope Di intent ol ~tii3prb.Vis ion of h is lease,

Sutton I 1 6 Successot s and A %sIuns I lie Lu in ‘ Lc ssom as uscd lit run sh ill inciudc thcLessor, its successors and assigns. and the term “Lessee” aS used herein shall include the Lesseeanti its successors and assigns.

Scction 117 Pit hal mt ahdtt’, Ii any tti IN, ~IO% ISIOII, 1,0% ethinl oi conditton 01 this kaseshou hi hc lid ci by a coti it 01 tout pt tent j unsd Itt tOO to bc mva lid so id 01 tint n lot t..cahie hitretnuinder of this lease shall continue in lii ii force and effect and shall in no way be affected.iin~ai red or n\al dated Uerebv.

Si_ct ton I I S I lilt 1101 I mpi 0% cincH L% t”M.) NI ~) Shoti hi titti i_ bc ins construct ion ctti i

thc ti_i in ol tIlls I cast I cssoj sh ~ii I tonsti uc L such JIUpYOS i_ mcnh in .tccot d,i nc,c 5% i di IlK finalplans ds mutual 13’ .ini cccl upon by I essom Lc sste and the h)tp~u I mc ni at ~\i_cou ruing and (idndi 4dS ti vict s sttbjtct to c a mpi 3 ing cv ill ill appl mc able Inn Id I ug codt’4 hits s (Inc I tiding ii RS, ch.iptei104.) and regulations. The Lessor shall (list obtain approval h’oh~ the Di,sahilihy and

p:qp% ~ ~~4 I.

Coinñiunieation Access l3ciard of proposed lnterihr Improvements in compliance with theAmericans with Disabilities Act Accessibility Guidelines (ADAAG) as required by HawaiiRevised Statutes Section 103—50.

Seu ion I 4 9 A mu icans wul Di saN lii its Act (ADA) C oiiinl I antc 1 lit Lessot shttlcomply ~ iii I (tic mandates ol the A mci icans with Dis iN Ii tics ~ct of 1990 and an~ amcnd mcntshut eto md I lie i egul ,tttons pi oimi igated thet cu ndci on all new c onsti tic Lion and aitci at lOflS of

nom e~idtntiaI I Lied thus including thc Pi cnlises herein All nc~~ consli uction and alterationsmust be nadc cacti Is accesstble to and U sabk hs ci tsal,l ad nd t iduals Disabled i nth’. idual smust be able toapproacli. enter and use the leased premises easily mind convenieinly, Accessmust be piot tdcd to pit mat 3 Cflfl alit Cs, pai I.. iOU .11 cci’i LOll (CS 10 and ho zn the but! ding bathi 00111%andwater fountains, and other goods, services anti programs of the leased premises. The Lessorshall not he i cqtut ed to pi o~ ide phvs ical iccess to a ii PaQi IC pi Opti ty ii dot Jig SO WOU Itt (hi tate 0

01 desti DV Its hi StOI IC fcatui es Lcssot tot thet •tgi ces di at ii it is dctu mined that the ho 11(11 ngincluding all coinnicin areas, does not comply with the t\I)A, or mccl minhnwu level ofaccessibi 1it5 (Mi iii film Access) ot iinih (In. Lessoi cii ill tic soIcly liable mi such failtiiü ~mdLessot shall takc all necessal y act ions intl ud i ng i cinodel ng to hit ng t hc ho tiding 01 preinisus (IiLessor providing murnkcy mlprovcment.s) into compliance. Mini mum Access means;

(a) At Last one .tccessible cnn ante compl3 mini ~\ nh A ojet ic,ms ~ nh Disabi hUts ActAccessibthty Guidel incs (Al) \ \G) I 14 Such anti ante shall lx. an enhance ustdby the aeneral public ( i.e.. lint mm service or freight entrance).

J (h) At lemisune accessible route complying with ADAACi ‘I. l’l to the Premises whereLesse&s functions are conducted.

(C) If toilet facilities nrc provided:

1. One Ii) toilet facility Ibreach sex in the bttilding; or

2. Qnei I ) unisex toilet.. liowuver. if alterations are being.~lone as atondinoti ul thu Lussec S OCttI~$flC3 a ii nlSt\ LOLILL a, acceptable otib ilalterations to existing toilet facilities for each sex mut technicallyunfeimsibic as defined iii ADAAG 4. 1.6(1 )(j )~

3, Th&Lessee will choose the option which provides greater access, Saidtoilet facilities shall confOrm with ADAAG 422. 4.23, and 4, I .6 (3) (e).

till Accessible parkinu complying with ADAAG 4. I .2 (5) I (aHe)l. 4,1.3 (8) (b) (I).I 6 I) (hI 111(1 I 6 it tustomu I 01 umplos cc pat tang is pi Os i tied and i nu ludud ill

tile louse.

The Lessee shall ensure that its proenun5 and services in the leased premises are‘P1 O~I .1111 ,ttccssi I) Ic liii ~ liii, Ills (Ii at tat Ii sc_i VICU, pi ogi .1111 iiicl itt IS IL) is i caddy acccssi lilt Inand usable by disabled individuals. See also. Title II of the A incricans with Disability Act andSection 504 of the Rehabilitation Act of 1973. as amended.

/ raeJt$ M~”fl1 4 ~ • ~i

Section 14.1 C) Movijia Allowance. tNONE)

SectIon 14.11 Days. Days shall ine:iii calciftlar days unless otherwise specified.

SeeLion I 4. I 2 Tax Clearances. Pursuant to Huwai i Revised St:iILites, section (03—53. laxcleat ,tnces Ii mu the ct1tw oh I lass iii Dhltitot Of I d\ iltOht (1)01 AX) 4nid (hit ItIII.I flat Res LulLService (IRS) are required as a pyercqmsiie to entering intO the lease agreement svi Lii the presentatid Law I attire L tssot (s) I d\ tkai .ifltts horn tht DO I A ‘< and IRS alt usa requirtd fbi I lit.final payment ol this lease agreci nent

Section (4. I 3 Notarized Siunahuth. Lessor’s notarized siunaturc(S) is attached and madea pgrt of this docit men t.

Stc L run I I I I Lift tie i\ Ci ttmtni~ NI oct ii tLaLi~i, Lsgclthj Lw C otm~p~uLs I hi’, ft.~cUn(.ut ns a if the agt terntnt s of nit pat [Its 1tncl t~tjInot be amt.ndt d ot moth I tt.d t. \tept by a sst iotaILgI cement lb ic least may be txecttttd in con ntti pat Ls Cat Ii of isliit Ii SIt 411 I be dttmed ~tiiorhtinal renardless of Elieclate of its execution and delivery. All of ~ueh counterparts Eo~eLher~hal1 tOn’,tt WIt tint ~tncI the Sanie kast hi ndt ng ~iI I of tlit. p tn L’~ hereto nuns tthstand mg .111 ottlit. pan its arc not sugnatot ito the at ig in ii om Lht saint LLUIUIU pat is rot alt purposes mci tidingSt nthout I imi t.tfloti , cc cit dat ion Liii EU! intl di. Inc ii ol Hi is kace duplicate unevet U ted anda nicknoss lecigeci pagcc or the wan Lu p ills ID IS be dtscardcd mci tin. tuBa in ing pages a~setnbIuLas one cloennient.

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ST,Vl’13 OF HAWAII

CITY AND COUNTY OF i-IONOLIJLU

On this / ~ day ______ 20 ii~ beloit me personally

appeared ,, ~o inc penomiliy known,

who,. being by me duly sworn or aITh’med. (lid say IbM such person(s) C~WcuLe&l the. foregoing

kisirumel as the flee act and deed ol such person(s)4 and ii applicable iii the capacity shown.

having been duly authorized to. execute such instrument in sock capacinc

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Notary Puhlic~.~pJ4Ipwj~0I’i nil ~‘4 iii~ ~ —

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Notary Seal Affixed:

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Date of the Nouiriz~cl DoeunthnL~ if /1

Number of Pages: .)_f __________

(dean lication or l)escription of the l)ocunwni being Notarized:

______ L~’oLSd~

Pt ailed Nat c l Notaty1’L CDLI XY tJ~ —

— ____________ ______

Notary’s Siun;iturc and Notary’s Official Stamp or Seal

17

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ACKNWLJEDGMILNT

S~I’t\i’E OF HA WAIF

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CITY AND COUNTY OF HONOLULU)

On this _________________ day or _______________________________ , 20!!, beFore me personally

appe(~red ________________________________________________________________________________ to. me personally known,

who, being, by iuc’du!y sworn or affirmed, tilt! say that stich’per.s n(s) executed the foregoing

instru mont ~ the free act ant! deed of such person(s), talc! if applicable in Lhe capacily shown,

havin~z been duly authonzecl to execute such ‘instrmuent in such capacity.

Nout ~ Pub Ia St ate of I Iawu I

J Print Name ___________________________________________________________

Ni commission expires:

Notary Soul Affixed!

Date of the Notarized Document: ______________________________________________________________________________________

Number of Pages: _______________________________________________________________________________________

identihcauon or Descripti on of the Document being Notarized:

Pm ted Name of Nottiiy: _______ Circuit

Notary’s Signature and Notary’s Official Stamp or Seal Date

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PrhJctb: OLELO - TENANT bhIP.ocE

S Fm

) FIRST AMENDMENT OF LEASE

This First Amendment of Lease (the “Amendment’) is made on this30th day of May , 2008. For valuable consideration,and receipt and sufficiency of which are hereby expressly acknowledged,Landlord and Tenant agree that:

I. Definitions

In this Amendment, the following terms have the meaning given:

A. Landlord: ‘OLELO COMMUNITY TELEVISION, a Hawaiicorporation.

C. Lease: Lease dated May 10, 1996, between Landlord andHonolulu Cellular Telephone Company for approximately 268 square feet on theroof and exterior walls of the building, along with approximately 457 square feetof the real property, located at 1122 Mapunapuna Street, Honolulu, Hawaii, asmore particularly described in the Lease.

D. Effective Date: November 21, 2005.

Any capitalized term used in this Amendment which is not defined in thisamendment has the meaning set forth for such term in the Lease.

II. Purpose

Landlord and Tenant have agreed to an extension of the term of theLease. Tenant has also agreed to assume the obligations of the original tenantunder the Lease and to acknowledge and pay the increased Ground Lease Rentas set forth herein. Therefore, the purpose of this Amendment is to extend theterm of the Lease, to provide for Tenant’s assumption of the obligations underthe Lease and to acknowledge and provide for the payment of increased GroundLease Rent as set forth herein.

lii. Rent for Extended Term

As of the Effective Date, Section 3.1 of the Lease entitled aBase Rent” ishereby amended in its entirety to read as follows:

“For each and every month during the term of thisLease, commencing on the first day of the month

)

4

following the Commencement Date and up to andincluding June 31, 2006, Tenant shall pay to Landlordon or before the first day of the month, at Landlord’soffice or at any other place designated by Landlord,without deduction or offset, prior notice of demand,EIGHT HUNDRED AND 00/100 DOLLARS ($800) permonth in lawful money of the United States ofAmerica, plus provide Landlord with a credit up toFOUR HUDNRED AND 00/1 00 DOLLARS ($400) permonth in cellular airtime usage allowance (“usageallowance”) on Tenant’s cellular system. The usageallowance shall be used to offset any access andairtime charges normally assessed under the rateplan(s) selected by Landlord for its various cellulartelephones activated on Tenant’s cellular system, butmay not be utilized to offset activation charges, tollcharges, roaming charges or other similar chargesassessed by other telecommunications carriers. Anyunused usage allowance remaining at the end of anygiven month shall be forfeited and may not be carriedforward. No usage allowance shall be assignable toor convertible to cash or other equivalentconsideration except as set forth in the Lease, as thesame may be amended from time to time.

Beginning on July 1, 2006, Tenant shall pay the baserent for each and every month for the respectiveperiods set forth below:

July 1, 2006 thru June 30. 2007 $1,560.00July 1, 2007 thru June 30, 2008 $1,606.80July 1,2008 thru June 30,2009 $1,855.00July 1, 2009 thru June 30, 2010 $1,704.65July 1,2010 thru June 30, 2011 $1,755.79July 1,2011 thru June 30,2012 $1,808A7July 1,2012 thru June 30,2013 $1,862.72July 1,2013 thru June 30, 2014 $1,918.60July 1,2014 thru June 30, 2015 $1,976.16July 1, 2015 thru June 30,2016 $2,035.45

Effective July 1, 2006, no further cellular airtimecredits or usage allowances shall be given toLandlord by Tenant.”

597993_213061-1 2

IV. Ground Lease Rent

Pursuant to Section 3.2 of the Lease entitled ‘Ground LeaseRent”, Tenant acknowledges that it shall pay Landlord its pro ratashare of increased Ground Lease Rent in the following amounts forthe following periods:

(1) For the period October 1,2004 to October 31, 2005,the sum of TWO HUNDRED FORTY-THREE AND20/100 DOLLARS ($243.20); and

(2) For the period November 1, 2005, the monthly sum ofONE HUNDRED EIGHTY-FOUR AND 631100DOLLARS ($184.63) through the remaining term ofthe Lease, which pro-rats share shall be adjustedupon any ground rent increase.

V. Brokers

Landlord is represented by Leandro Corporation. Tenant represents andwarrants to Landlord that Tenant is unrepresented with ‘regard to thisAmendment. Landlord and Tenant will indemnify and hold the other harmlessfrom any claim for fees or commissions from anyone with whom either of themhas consulted or negotiated with regard to this Amendment.

VI. Confirmation of Lease

Landlord and Tenant confirm and ratify in all respect the terms andconditions of the Lease, as amended by this Amendment.

VII. Counterpart Signatures

This Amendment may be executed in counterparts, each of which shall bedeemed an original, and said counterparts shall together constitute one and thesame instrument, binding all the parties thereto, notwithstanding that all theparties are not signatories to the original or the same counterpart. Facsimilecopies shall be deemed the equivalent or of originals, but originals must beexchanged promptly by all parties.

597993..213061-1 3

IN WITNESS WHEREOF, Landlord and Tenant have executed thisAmendment as of the date set forth above.

tLELO COMMUNiTY TELEVISION, a Hawaiicorporation

By: __

Its: PresidentlcEQ.,..,

C— /

L Its: Cfi~ir

Its:

“Landlord”

“Tenant”

By:

By:

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• • • • • • • •

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pwitness or otherwise in any acUon or proceeding whatsoever lnvàlving or affecting.Land1ordorth1S1~OaEe. . .. .

12 Melgnmont and Sublettina

42.1 j’j~. The pUrpoae.ofthisL~aselstOUanSferpossession & me PrerniseS.tO Tqnant ftrTenanVs personal, use in return für certainbenefits, Inciudln9 rent,.to be transferred to the ‘Landloid. tenant right ~oassign or

as state4 h.this Settlon IS áubsldlary and incidental to the undsrlidng purpose ofthis Isase Tenan1~cknoWledgeS and agrees that It has entored itItothIs tease Inorder to acquire the Prafulses for Its own pemenal use and not for the pwpose ofobtaining the right to canVO9 ~ie leasehold to Othem

422 .~rran er of mc Pm 8W’ fine.’ the terms Wransfer ø~Premises° Or 9~r~ñsIe? as used.heraln shall Inclu4e any aaignnient of all or any part ofthis Lease (including aálgnrnent by operation of law), sublèttlñg .th aU.or:any part of thePrembee or transfer of possession, or rightof possession or contingent right of

- - posee~sIon ofall.orany’portian of the Pi’çmbés;lndJdlng, witttoutllmltatlOñ.concession, mortgage, devise, hypothecahonk agency, franchise or management’

• . agieenient, ortosu~ gThGrPOfl(thaelltSafld sevvants*Tenaflt excepted)

to occupy or use said Premises or any portion thereof If tenant — a corporation whichis nth deemed a pubic corporation, or is an tXnl~corporat8d aseoclallon or partnership,or,Thi~ant consiSts of morW:thWi one pdrfl ,lrflfer,asRigflETie!lt orh~p.othecafioii ofany stock at interest ‘in s*icfl corporatIoti,~adeoclktIoitparbintshlP or ownaiship Interestin the aggregate biexces of twenty-five percent (25%), ehaWbe deelned a TransMr of

théPreilses, ,.‘ . .• : ~ NoTfansferWIthout Consent. tenunt~ha1InoflUfreraTrflfOrOf

tjie’Premises or any interséttereln, many part thereof, or any right or.prlv[lege.’

. •appLlrtenant thereto,withot1t the prior written~01’ I..aridlord, ~d a consent ~ one

• . . Transfer of the Premises; shall not be deemed to be a consanflo any subsequentTransfer of Ihe Piemlses. My Transfer of Theprefleuwlthuu.tsuüb consent shali bevoid, and shalt at the option of Landlord, terminate this LeOse. Notwithstanding thefore~óing, Tenjnt shall have the right without the consent of Landloi~, b,ut upon pitorwritten notice tO Landlord, to assign this Lease to any subsidl2ry or parent company ofTenant, or affiliated organization that cdmes under The Øwnershipurnbreila of Tenant’sparent Opnlpäny. . . . •

• 12.4 . ~Mien Consent Granted. Thitohäent of Là dloikJto a’Transfermay not be unreasonabiy,withlwld, provided’shouldLa.ridiord withhold ~ts consent Thrany ‘of the tbtlowing reasons, which list Is not exclusive, such wIthhoIdIn~ shall be.deemed to be reasonable:, .

(1)’ FInancial strength of the proposed transferee ié not at Ieaêt‘equal to.that of Tenant at the time of execution of this Lease;

21

e~ie~ 9980 09~ 6V6 ‘ON XUd 100 ~3U18 Wd ~t:~O IUd S00&91—d3S

~‘ ~ ,.~

• *(2) Arópásed ra is eewhoeeocCIip~tcn of the Premiäes

would cause a diminpilon tn the reputation the;SuIldlng orthe tarbusinessea located Therein;

(3) A proposed transferee whose impact on the commoftfacilities or the otheroccupants of the Building wpuld be disadyantagéoUSor .

(4) A proposed transfer@e whose ocoupancywlil require. avariation in the terms of the LBasa . .. .

12.5. EtotedüteitT Ot~alnlno Consent Landldrdj eed not corñmence• its review of any própos~4TranSte!~ or respond to any request byienant’wIth respect.

to such, unless andUnUI it has receWed from Tenant, adequate descriptiveWomiation’corcemthgihe busfnesstô beäonduoted byiho pmposedirnn*ree~iiW transferee’sfinancial capacity, and such other lnfernia&n so mey reasonably be requiTed ;n’crder toform a pnidsntjudgrneflt3s ~heaccepthbllltY of he prUposodTranster. lncludl*

- .... ithQutlln,ltatlofl.theftHOWhiW . .,

(1) The past two (2) year’s Fedelal Indome Tax returns of thepro osed’tmnsferee (orin.the altematiye the past two (2)yeas audite4annual Balance Sháts and Profit and Loss stetements, certified c&rectlSy wccrttfiedpubric Accountant); . .

(2) BankIng references of the proposed transteres;

@). A~of the business backgmwid and experience ottheproposed transferee; and

(4) An executed copy of the inatrumant by which Tenantproposesto effectuate the Transfer. . . . . .

-. . Tenant shall reimburse Landlord as additional rentfor L~ndiord!s

reasonable costs and attorneys’ fees Incurred In conjunction with the processing anddocumentation of any froposed Transfer of the Premises, whether or not consent isgranted. . .

12.6 .—d&etêd—

122 gff~qtdTmna If Landlord consents k~.a Transfet, thefoltowingCOnditions shalt app1y~ . .

(1) Each and every covenant, condition orobtI9atIon imposedupon Tenant by this Lease and each and every right, remedy or benefit

.22

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~0LEASE

THIS LEASE is made this f day of ErsgunH , 2012 (the‘Effective Date”), by and between ‘OLELO: THE CORPORATION FORCOMMUNITY TELEVISION, a Hawaii corporation, hereinafter called ‘Landlord,”whose address is 1122 Mapunapuna, Suite 100, Honolulu, Hawaii 96819 (theentirety of said property hereinafter called “Real Property”), and

1.1 Description of Premises. Landlord, for and in consideration ofthe rents, covenants and agreements reserved and contained in this Lease, and onthe part of Tenant to be paid, observed and performed, does demise and lease tofenant, and Tenant does lease from Landlord approximately 16,598 square feet ofwarehouse space located in the building (the “Building”) together with the open yardareaiparking/loading dock (the “Yard Area”) located on the Real Property describedin Exhibit “A”, attached hereto and made a part hereof, hereinafter called the“Premises,” and which configuration and location on the Real Property is depicted bycross-hatching on Exhibit “B”

1.2 Yard Area Subiect to Antenna. Tenant acknowledges andagrees that there is an existing antenna facility located within the Yard Area operatedby AT&T. AT&T (or any alternative antenna operator upon prior written notice toTenant) shall have access to the Yard Area for the operation, repair andmaintenance of the antenna facility upon twenty-four (24) hours written notice toTenant,

1.3 Tenant Accepts the Premises “As Is”. “Where Is”. Tenantaccepts the Premises in its condition existing as of the Lease commencement date inan “AS IS” “WHERE IS” condition, without any warranties or representations,expressed or implied by Landlord as to the condition thereof, except for expresswarranties set forth in this Lease. Landlord and Tenant shall conduct a waikthroughprior to Tenant taking possession and occupation of the Premises.

1.4 Possession. Unless otherwise expressly agreed upon by theLandlord and Tenant, Landlord shall deliver to Tenant and Tenant shall have the rightto possess and occupy the Premises on the commencement date, and the right tosuch possession and occupancy shall continue to the expiration date unless and untilTenant shall be in default of any of the material terms, covenants and/or conditionscontained in this Lease and on the part of Tenant to be observed and performed,subject to adequate written notice by Landlord of any alleged default and areasonable opportunity to cure same.

2. Term. The term of this Lease shall be for a period of four (4) months,commencing on March 1, 2012 (the “Commencement Date”), and terminating onJune 30, 2012, unless sooner terminated as provided in this Lease, or extendedpursuant to Tenant’s option to extend the term of this Lease as set forth below.

1. Premises.

hereinafter called “Tenant”.

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2.1 Option to Extend Term. Tenant is given the option to extend theterm of this Lease on all the provisions contained in this Lease, except for rent, asfollows:

(a) for a period of six (6) months beginning on July 1, 2012 andterminating on December 31, 2012, following expiration of the initialterm for a monthly gross rent of $28.000.00 plus Hawaii GET as setforth below;

(b) for a period of six (6) months beginning on January 1. 2013 andterminating on June 30, 2013. following expiration of the first Optionterm for a monthly gross rent of $28,000.00 plus Hawaii GET as setforth below

(c) for a period of one (1) year beginning on July 1, 2013 andterminating on June 30, 2014, following expiration of the second Optionterm for a monthly gross rent of $30,000.00 plus Hawaii GET as setforth below;

(d) bra period of one (1) year beginning on July 1, 2014 andterminating on June 30, 2015, following expiration of the third Optionterm for a monthly gross rent of $30,000 plus Hawaii GET, plus sixpercent (6%) cost of living increase, as set forth below;

(e) for a period of one (1) year beginning on July 1 • 2015 andterminating on June 30, 2016, following expiration of the fourth Optionterm for a monthly gross rent of $31,800 plus Hawaii GET, plus threepercent (3%) cost of living increase, as set forth below;

(f) for a period of one (1) year beginning on July 1, 2016 andterminating on June 30, 2017, following expiration of the fifth Optionterm for a monthly gross rent of $32,754 plus Hawaii GET, plus threepercent (3%) cost of living increase, as set forth below;

(each term, an “Option’).

Each Option toextend shall be exercised, if at all, by giving notice ofexercise of the option (“Exercise Notice”) to Landlord at least forty-five (45) days butnot more than one hundred twenty (120) days before the expiration of the currenttern; provided, however, that Tenant may give notice of its exercise of the firstOption term within thirty (30) days of the expiration of its four (4) month initial term asspecified in Paragraph 2 hereof. Once the Option is exercised, Tenant shall have noright to withdraw andJor rescind the exercise of said Option. Notwithstanding theforegoing, if an uncured event of material default has occurred under this Lease(subject, however, to normal cure periods as allowed by this Lease), and remainsuncured on the Exercise Notice date, the Option shall be void and of no force oreffect unless the parties in good faith agree otherwise. Further, if an uncured eventof material default exists (subject, however, to normal cure periods as allowed by thisLease) subsequent to the delivery of the Exercise Notice but prior to thecommencement of the Extended Term, Landlord shall accept such Exercise Noticeand the unoured event of material default will be subject to the standard cureprovisions herein. Tenant acknowledges and agrees that the Option is personal to

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Tenant, and may not be assigned or transferred, with or without its interest in thisLease, to any party other than Tenants parent company or sister entities operatingunder the umbrella of Tenant’s parent company.

3. Rent and Security Deposit.

3.1. Rent. For each and every month during the term of this Lease,commencing on the first day of the month following the commencement date, Tenantshall pay to Landlord on or before the first day of that month, at Landlord’s office or atany other place reasonably designated by Landlord, without deduction or offset, priornotice or demand, in lawful money of the United States of America, the followingrental for the respective periods hereinafter set forth as follows:

March 1,2012 through June 30, 2012—$40,000.00 permonth.

Any partial months at the commencement and termination of thisLease, as extended, shall be prorated on the basis of a thirty (30) day month. Tenantshall pay all other charges required by this Lease, i.e., general excise tax andelectrical charges only. The parties agree to work diligently and in good faith toresolve any rental dispute(s) that may arise during the initial term and Option terms ofthis Lease.

3.2. Security Deposit. Landlord hereby acknowledges the receipt of(a) payment of the first full month’s rent in the amount of $40,000.00 and (b) asecurity deposit in the amount of $30,000.00. Said security deposit shall be held assecurity for the performance of Tenant’s obligations under this Lease by Tenant.

) Tenant shall not be entitied to interest therefrom. Landlord reserves the right tocomingle Tenant’s security deposit with other security deposits held by Landlord inone or more of Landlord’s accounts. If Tenant shall fully and faithfully perform everymaterial provision of this Lease to be perlbrmed by it, the security deposit shall bereturned to Tenant within thirty (30) days of the expiration of this Lease, if Tenantshall have actually vacated the Premises upon the termination of this Lease.

4. General Excise Tax. Together with each payment of rent or any otherpayment required hereunder, Tenant shall pay to Landlord the Hawaii general excisetax as additional rent, only to the extent that such payments are subject to thegeneral excise tax and not exempt therefrom. The current general excise tax rate is4.712% but is subject to change by the State of Hawaii over the term of this Lease.

5. Peaceful Eniovnient. Upon payment by Tenant of the rent to Landlordand upon observance and performance of all the material terms, covenants,conditions and agreements contained in this Lease and on the part of Tenant to beobserved or performed, Tenant shall peaceably hold and enjoy the Premises duringthe term and Option periods of this Lease without hindrance or interruption byLandlord or anyone lawfully or equitably claiming by, through or under Landlord,except as may be expressly provided in this Lease.

6. Utilities.

6.1 Payment by Tenant. Tenant, from the Commencement Date ofthis Lease, and throughout the term and Option periods of this Lease, shall pay all

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electrical charges1 including connection fees, for electricity supplied to or consumedin or on the Premises. Tenant shall place all refuse, garbage or trash in containersand locations approved by Landlord, including sorting this material into separatecomponents as may be required by any governmental authority, and shall not allowany refuse, garbage or trash to accumulate outside of the Premises except on theday of scheduled trash pick-up services, and then only in areas designated as suchaccording to the rules established for that purpose by Landlord. Landlord herebyconsents to Tenant arranging for garbage dumpsters to be placed in the yard areaadjacent to the Premises as depicted on Exhibit “B” (the ‘Yard Area”), for Tenantsexclusive use and at Tenant’s sole cost and expense. Landlord shall not beresponsible or liable for any interruption in utility services, nor shall such interruptionaffect the continuation or validity of this Lease, except if such conditions arise due toLandlord’s negligence or willful misconduct.

6.2 Separate Meters. Landlord reserves the right to install or requireTenant to install, at Tenant’s expense, separate meters for electrical power servicingthe Premises. Tenant shall make payments, when due, directly to the utility involvedfor all separately metered utilities servicing the Premises. Landlord reserves the rightto install or require Tenant to install, at Tenant’s expense, check meters to monitor allelectrical usage within the Premises. Tenant shall make payments directly toLandlord for power usage monitored by check meters rather than separate meters.Landlord acknowledges that Tenant shall only be responsible for Tenant’s ownverified usage and not the usage of Landlord orany other tenants or invitees. To theextent any utilities are not calculated on dedicated meters, Tenant shall be providedwith itemized statements showing Tenant’s usage amounts separate and distinctfrom all others’ usage.

6.3 Joint Meters. If any utility services are not separately metered toTenant, Tenant shall pay a proportion to be determined by Landlord of all chargesjointly metered with other premises or occupants of the Building. All payments toLandlord in respect thereof shall be due within ten (10) days after receipt of the billingby Tenant Landlord acknowledges that Tenant shall only be responsible forTenant’s own verified usage and not the usage of Landlord or any other tenants orinvitees. To the extent any utilities are not calculated on dedicated meters, Tenantshall be provided with itemized statements showing Tenants usage amountsseparateand distinct from all others’ usage.

7. Operation of Tenant’s Business.

7.1 Use of Premises: Ownership. Tenant agrees that the Premisesshall be used for production activities relating to Tenant’s pilotiseriesIprogramcurrently entitled “Last Resort,” including but not limited to entering upon, using, andby means of film, tape, videotape or any other method, recording and photographingthe Premises, including the interiors and exteriors of all buildings, improvements, andstructures thereon and the contents thereof; bringing on and utilizing personnel,personal property, materials, and equipment, including but not limited to creatingprops, painting and constructing temporary sets; and recreating the appearance ofthe Premises, whether accurately or otherwise, at an offsite location(s) for thepurposes of recording and photographing same. Tenant agrees to be responsible forits personnel, vendors and other invitees entering the Premises in connection withTenant’s activities thereon. Tenant agrees that the Premises shall be used and

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occupied in a careful, safe and proper manner, and that no nuisance nor waste shallbe committed or permitted upon, or any damage done to, the Premises, taking intoaccount typical television production activities. Landlord and Tenant understand thatno extraordinary activities will take place on the Premises (i.e., pyrotechnics) and thatif Tenant should include such activities, Landlord will be given advance notice ofsame.

Tenant, its successors, assigns and licensees shall own all rights of every kindin and to all video and sound recordings, motion pictures or photographs made,recorded andlor developed by Tenant or by Landlord during the term of this Lease, inand about the Premises and Real Property and relating in any way to Tenantsactivities thereon, in any and all media now known or hereafter devised ordiscovered, throughout the world in perpetuity, including the irrevocable right to useany such recordings, motion pictures or other photographs of the said Premises andReal Property, including the name, logo or identification of said Premises and RealProperty, in the advertising, publicity and promotion of the pilotlseries!program, andTenant’s productions, without further payment or permission of any kind. NeitherLandlord nor any tenant or other party now or hereafter having an interest in thePremises and Real Property shall have any right of action against Tenant or anyother party arising out of any use of said photographs and/or sound recordingswhether or not such use is, or may be claimed to be defamatory or untrue in nature,and Landlord, any tenant and any other party now or hereafter having an interest inthe Premises and Real Property hereby waives any and all rights of privacy, publicityor any other rights of a similar nature in connection with Tenant’s exploitation of anysuch photography and/or sound recordings. Landlord shall have the right to any andall video and sound recordings, motion pictures or photographs made by Landlordrelating to the Real Property made in the ordinary course of Landlord’s business atthe Real Property, including, but not limited to, security video or photos made forpurposes of marketing the Real Property, but such right shall not extend to anyrecordings, pictures, photographs or other materials depicting in any manner ordegree Tenant, Tenants personnel, vendors or other invitees, or Tenants activitiesthereon.

7.2 Annoying or Injurious Conduct. No auction, fire or bankruptcysales may be conducted in the Premises without the prior written consent ofLandlord.

7.3 Rubbish. Subject to Section 6.1, Tenant shall keep the Premisesand loading dock in the same clean, neat and sanitary condition as on theCommencement Date, reasonable wear and tear excepted, and free from Tenantsrefuse, trash and dirt at all times. Tenant shall remove all refuse, trash or dirt causedby Tenant to be placed on adjoining sidewalks or walkways and loading areas.

7.4 No Waste or Strip. Tenant shall not make or suffer any strip orwaste or any unlawful, improper or egregious use of the Premises or any part thereofnor overload the floors or any other parts of the Building. Further, Tenant shall notcarry on, do or suffer to be carried on or done upon the Premises any acts, trade,practices or business which may materially damage the Building or the Premises orbe or become a nuisance or menace to persons or property, and shall not do, permitor suffer to be carded on any activity, trade, practices or take or store upon the

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Premises objects or property other than what is typical or standard for the televisionproduction industry.

7.5 Limitation on Type of Business. Tenant shall not permit anybusiness to be operated in or from the Premises by any concessionaire, licensee orsubtenant. Notwithstanding the foregoing, the Premises may be used by Tenant orTenants affiliated companies strictly in compliance with Section 7.1 hereinabove.

7.8 Observance of Laws. Tenant shall, at Tenant’s sole reasonablecost and reasonable expense, at all times during the term keep the Premises in thesame good order and the same strictly sanitary condition as on the CommencementDate, reasonable wear and tear excepted, and observe and comply with allapplicable laws, ordinances, rules and regulations now or hereafter made by anygovernmental authority for the time being applicable to the Premises use thereof. IfLandlord receives oral or written notIce from a municipal, county, state or federalauthority of infractions of law or a failure to meet any requirements of such anauthority in relation to Tenants use and informs Tenant in writing of same, or Tenantreceives notice directly from such municipal, county, state or federal authority ofinfractions of law or a failure to meet any requirements of such an authority in relationto Tenant’s use, and Tenant refuses or neglects to take proper corrective action afteradequate written notice and a reasonable opportunity to cure, Landlord may, in itssole discretion and upon reasonable written notice, enter the Premises and take anyaction necessary to eliminate the InfractIons or to achieve compliance with suchrequirements on Tenant’s behalf, without liability to Tenant for any loss or damagewhich may result to Tenants business by reason thereof unless due to Landlord’snegligence or willful misconduct. Upon Landlord’s presentation to Tenant of the billfor the work (including, without limitation, the materials used in performing it) done byLandlord in order to eliminate such infractions orto achieve such compliance, Tenantshall pay to Landlord, as additional rent, the reasonable and necessary costsincurred by Landlord in performing such work. The bill shall include a fee of twelvepercent (12%) on such costs to cover Landlord’s overhead. Notwithstanding theforegoing, so long as Tenant has commenced the cure of such infractions of law ordeficiencies within ten (10) business days of such notice, and diligently pursues cureof such infractions of law or deficiencies, Landlord may not take any action to achievecompliance with such requirements on Tenants behalf, and Tenant shall not bedeemed in default for so long as it is reasonably diligently pursuing compliance withsuch requirements.

7.7 Yard Area of the Premises. Landlord shall provide Tenant withthree (3) keys for the lock on the Yard Area gate and shall retain a key for access tothe antenna in the Yard Area by the antenna operator. Tenant shall be responsiblefor locking and unlocking the gate as needed in order to allow its access to andmaintain security of the Yard Area. Subject to the confidentiality provision set forth inSection 21.17 below and with the exception of the legitimate access needs of theantenna operator and any necessary emergency access by Landlord and Landlord’sagents, the parties acknowledge that Tenant shall have exclusive possession andcontrol of the Yard Area for the term and Option periods hereunder. Other than asdescribed above, no additional keys shall be cut or distributed to anyone, and noaccess shall be granted without the express written agreement of Tenant.

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7.8 No Liens or Encumbrances. Tenant shall not commit nor sufferany act or neglect whereby the Premises or Real Property (only if Tenant uses anynon-Premises related area of the Real Property, and then only as to that area), or theinterest of Landlord in the Premises or Real Property shall, as a direct result ofTenants actions or omissions at any time during the term, become subject to anyattachment, judgment, lien, charge or encumbrance as a result of Tenant’s usewhatsoever, and shall indemnify and hold harmless Landlord against all suchattachments, judgments, liens, charges and encumbrances on the Premises or RealProperty, or the interest of Landlord therein and from all reasonable costs andreasonable expenses arising or resulting therefrom, including reasonable outsideattorneys’ fees, it being expressly understood and agreed that Tenant shall have noauthority, express or implied, to create or suffer to be imposed any lien, charge orencumbrance upon the Premises or Real Property or upon the interest of Landlordtherein unless due to Landlord’s negligence or willful misconduct. Tenant at its solereasonable cost shall have the right, at any time, to contest in good faith anyattachment, judgment, lien, charge or encumbrance whatsoever (the “Lien”) by athird party, the assertion of which would not constitute a breach of this Section aslong as Tenant within thirty (30) days of the filing of any Lien commences action toresolve the Lien. If Tenant contests such Lien, the failure on Tenant’s part to pay theLien shall not constitute a default as long as Tenant complies with the provisions ofthis Section. Landlord shall not be required to join in any proceeding or contestbrought by Tenant unless the provisions of any law require that the proceeding orcontest be brought by or in the name of Landlord or any owner of the Premises orReal Property. In that case, Landlord shall join in the proceeding or contest or permitit to be brought in Landlord’s name as long as Landlord is not required to bear anycost, but Tenant shall retain control over the proceedings. Tenant, on final

3 determination of the proceeding or contest, shall immediately pay or discharge anydecision or judgment rendered, together with all costs, charges, interest andpenalties incidental to the decision or judgment.

7,9 Inspection of Premises. Tenant shall permit Landlord andLandlord’s agents at all reasonable times duringiie term upon a minimum of forty-eight (48) hours advance written notice to enter the Premises to examine the state ofrepair and condition thereof at a time causing the least disruption to Tenant’sbusiness activities.

7.10 Prohibited Uses. Tenant shall not use the Premises for thepurpose of storing junk, scrap (except for excess or discarded materials occurring inthe regular course of Tenant’s use of the Premises in accordance with Section 7.1hereof) or other offensive materials or hazardous materials (as hereafter defined);shall not make or suffer any strip or waste or unlawful or hazardous use of thePremises; and shall not commit or permit the commission of any nuisance on thePremises; shall not sell, store or permit to be kept, used or sold in or about thePremises any article not related to the ordinary course of television production andwhich may be prohibited by any policy or policies of any insurance applicable to thePremises that Tenant is made aware of.

7.11 Hazardous Materials.

7.11.1 Hazardous Materials Defined. As used herein, the term“Hazardous Materials” shall mean (i) any hazardous or toxic wastes, materials or

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substances” and any other pollutants or contaminants, which are or may becomeregulated by any applicable local, state or federal laws, including but not limited to,33 U.S.C. Section 1251 et~q., 42 U.S.C. Section 6901 ~42 U.S.C. Section7401 et ~q., 42 u.s.c. Section 9601 et~ and the Hawaii Environmental QualityControls, Chapter 342, Hawaii Revised Statutes, or any successor(s) thereto(collectively “Environmental Laws”) ; (ii) petroleum; (iii) asbestos; (iv) polychlorinatedbiphenyls; and Cv) radioactive materials.

7.11.2 Use, etc., of Hazardous Materials. Tenant agrees thatduring the term of this Lease, there shall be no use, presence, disposal, storage,generation (collectively “Hazardous Use”), or Intentional Release, as defined in 42U.S.C. Section 9601 (22), or any successor(s) thereto, or threatened Release ofHazardous Materials by Tenant on, from or under the Premises except to the extentthat and in accordance with such conditions as, Landlord may have previouslyapproved in writing. It is further agreed that Tenant shall be entitled to use and storeonly those Hazardous Materials which are necessary for Tenant’s business, providedthat such usage and storage is in full compliance with Environmental Laws, and alljudicial and administrative decisions pertaining thereto. Tenant shall not be entitledto install any tanks under, on or about the Premises for the storage of HazardousMaterials without the express written consent of Landlord, which may be given orwithheld in Landlord’s sole reasonable good faith judgment. For the purposes of thisSection, the terms Hazardous Use and Release shall include Hazardous Use(s)and/or Release(s) of Hazardous Materials on, from or under the Premises by any andall lessees, occupants, and!or users of the Premises (except Landlord), whetherknown or unknown to Tenant, and whether occurring and/or existing during or prior tothe commencement of the term of this Lease, but Tenant shall only be responsible forthat which is caused directly by Tenant.

7.11.3 Hazardous Materials Report: When Required. Tenantshall submit to Landlord a written report with respect to Hazardous Materials(“Report’) in the form hereinafter prescribed, at anytime, within ten (10) days afterwritten request by Landlord, if Landlord has a reasonable basis to suspectHazardous Materials on the Premises or a violation of this Section 7.11 causeddirectly by Tenant. The Report shall contain, without limitation, the followinginformation:

(1) Whether on the date of the Report and (if applicable)during the period since the last Report there has been any HazardousUse on. from or under the Premises.

(2) If there was such Hazardous Use, the exact identity ofthe Hazardous Materials, the dates upon which such materials werebrought upon the Premises, the dates upon which the HazardousMaterials were removed therefrom, and the quantity, location, use andpurpose thereof.

(3) If there was such Hazardous Use, any governmentalpermits maintained by Tenant with respect to such HazardousMaterials, the issuing agency, original date of issue, renewal dates (ifany) and expiration date. Copies of any such permits and applicationstherefor shall be attached.

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(4) If there was such Hazardous Use, any governmentalreporting or inspection requirements with respect to such HazardousMaterials, the governmental agency to which reports are made andlorwhich conducts inspections, and the dates of all such reports and/orinspections (if applicable) since the last Report. Copies of any suchReports shall be attached.

(5) If there was such Hazardous Use, identification of anyoperation or business plan prepared for any government agency withrespect to Hazardous Use.

(6) Any liability insurance carried by Tenant with respectto Hazardous Materials, the insurer, policy number, date of issue,coverage amounts, and date of expiration. Copies of any suchcertificates of coverage shall be attached.

(7) Any notices of violation of Environmental Laws.written or oral, received by Tenant from any governmental agency sincethe last Report, the date, name of agency, and description of violation.Copies of any such written notices shall be attached.

(8) Such other pertinent information or documents as arereasonably requested by Landlord in writing.

7.11.4 Release of Hazardous Materials: Notification andCleanup. If at any time duringihe term of this Lease Tenant knows or believes thatany Release of any Hazardous Materials has come or will come to be located upon,about, or beneath the Premises, then Tenant shall, as soon as reasonably possible,either prior to the Release or following the discovery thereof by Tenant, give verbaland follow-up written notice of that condition to Landlor.d. If any Release is due toTenant’s acts or omissions hereunder, Tenant covenants to investigate, clean up andotherwise remediate any Release of Hazardous Materials by Tenant at Tenant’sreasonable cost and reasonable expense; such investigation, clean up andremediation shall be performed only after Tenant has obtained Landlord’s writtenconsent, which shall not be unreasonably withheld; provided, however, that Tenantshall be entitled to respond immediately to an emergency without first obtainingLandlord’s written consent. All clean up and remediation shall be done to thereasonable satisfaction of Landlord.

7.11.5 Inspection and Testing by Landlord. Landlord shall havethe right at all times during the term of this Lease to (I) inspect the Premises, and to(ii) conduct tests and investigations to determine whether Tenant is in compliancewith the provisions of this Section 7.11. Except in case of emergency, Landlord shallgive reasonable written notice (minimum ibrty-eight (48) hours in advance) to Tenantbefore conducting any inspections, tests, or investigations. The reasonable cost ofall such inspections, tests and investigations shall be borne by Tenant, if Landlordhas a reasonable basis in fact to suspect Hazardous Materials located in thePremises and reasonably believes such tests to be necessary and directly caused byTenant. Neither any action nor inaction on the part of Landlord pursuant to thisSection 7.11 shall be deemed in any way to release Tenant from, or in any way

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modify or alter, Tenanvs responsibilities, obligations, artdlor liabilities incurredpursuant to this Section 7.11.

7.11.6 Indemnity. Except if due to the negligence or willfulmisconduct of Landlord, Tenant shall indemnify, defend and hold Landlord harmlessfrom and against any and all claims, judgments, damages, penalties, fines, liabilities,tosses, suits, administrative proceedings and costs (including, but not limited to,reasonable outside attorneys’ and any reasonable and applicable environmentalconsultants’ fees) arising from or related to Hazardous Use or Release of HazardousMaterials on or about the Premises caused by the acts or omissions of any personsor entities related to Tenant, but excluding the acts or omissions of Landlord,Landlord’s agents and representatives, and persons or entities unrelated to Tenant.Tenant’s obligations hereunder shall survive the termination of this Lease as to harmor injury directly caused by Tenant during the term of this Lease. Notwithstandinganything contained herein to the contrary, Tenant’s indemnification of Landlord shallnot extend to any Hazardous Materials existing on or about the Premises prior toTenant’s entry onto the Premises.

7.11.7 Landlord’s Representation and Indemnity. Landlordrepresents to Tenant, to the best of Landlord’s knowledge, that no enforcement,cleanup, remedial, removal, or other governmental or regulatory action have beeninstituted, completed or threatened pursuant to Environmental Laws affecting theReal Property and/or the Premises and no claims have been made or are threatenedby any third party against Landlord or the Real Property and!or the Premises relatingto damages or injury resulting from Hazardous Materials on the Real Property and/orthe Premises. Landlord assures Tenant that the Premises shall be delivered toTenant on the Commencement Date of this Lease, free of asbestos and/or any otherHazardous Materials, and Landlord will indemnify and hold Tenant harmless for allHazardous Materials existing on the Real Property and the Premises prior toTenants occupancy of the Premises.

8. Maintenance and Repairs.

8.1 Obligations of Landlord and Tenant. Tenant shall, at its solereasonable cost and reasonable expense, keep and maintain the Premises andappurtenances, and every part thereof in as good and sanitary-order, condition andrepair as on the Commencement Date, excluding reasonable wear and tear butincluding all necessary replacements related to Tenant’s use. Notwithstanding theforegoing, Landlord shall perform all reasonably necessary repairs, maintenance andreplacement of the infrastructure, foundation, roof and structural parts of the Building,including plumbing. If Landlord has not commenced repairs, maintenance and/orreplacement within forty-eight (48) hours of Landlord’s receipt of notice from Tenant,Tenant shall have the right to take remedial action and deduct all reasonable costsand expenses from its next-month rent payment. Providing a minimum of forty-eight(48) hours advance written notice to Tenant except for emergencies, Landlord shallhave full rights of access to the Premises, at all reasonable times and from time totime, using reasonable efforts to minimize disruption of Tenant’s business oroperations, to perform all necessary repairs, maintenance and replacement of thefoundation, roof and structural parts of the Building, andlor any air conditioning,electrical, security, plumbing or other mechanical systems servicing parts of TheBuilding and/or other tenant spaces within the Building. Tenant shall, at its sole

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reasonable cost and reasonable expense, keep and maintain all utilities, fixtures andmechanical equipment used by Tenant in as good order, condition and repair as onthe Commencement Date, reasonable wear and tear excepted. Tenant shall repairand make good all defects caused by Tenant and required by the terms of this Leaseto be repaired and made good by Tenant within thirty (30) days after the giving ofwritten notice by Landlord or Landlord’s agents. If Tenant shall refuse or neglect tocommence and complete such repairs within that period, Landlord may make suchrepairs or cause the same to be made, making a reasonable effort to minimize anyinconvenience, interruption, loss or damage that may be caused to the property orbusiness of Tenant by reason thereof, and Tenant shall forthwith pay to Landlordwithin ten (10) days of demand by the latter of the verified, documented cost ofrepairs thereof with a fee of twelve percent (12%) on the cast to cover Landlord’soverhead. Notwithstanding the foregoing, so long as Tenant has commenced thecure of such repairs within ten (10) days of Landlord’s written notice, and reasonablydiligently pursues cure of such repairs or deficiencies, Landlord may not take anyaction to repair on Tenants behalf, and Tenant shall not be deemed in default for solong as it is reasonably diligently pursuing the cure of such repairs.

8.2 Air Conditioning System. Landlord shall maintain, at its sole costand expense, the air conditioning system for the Premises.

8.3 Definition of Common Areas. The term “Common Areas” asused in this Lease means all areas and facilities of the Real Property, outside thePremises that are provided and designated by Landlord or otherwise provided ordesignated from time to time for the general use and convenience of Tenant and ofother tenants having the common use of such areas, and their respective authorizedrepresentatives and invitees. Common Areas may include, without limitation, anydriveways, parking areas, public restrooms and other public areas, nail facilities,common trash areas and facilities, bicycle storage areas, stairways, elevators andlandscaped areas, storage and maintenance areas and facilities for the operation ofthe building, and sidewalks-and walkways (whether any of such sidewalks andwalkways are within or without the boundaries of the Real Property). The CommonAreas and the designations and location of Common Areas are tentative andLandlord reserves the right in its absolute reasonable and good faith discretion tomake alterations, deletions and additions thereto from time to time and shall provideTenant with written notice thereof. Subject to any governmental requirementsgoverning the same, Landlord agrees to permit Tenant to remove certain planterslocated in the Common Areas that Tenant alleges are interfering with Tenants use ofand ingress/egress to the Premises; provided, however, that Tenant shall restore anyplanters removed at its request prior to the termination of this Lease at its solereasonable expense if requested to do so by Landlord.

8.4 Rights and Duties of Landlord. Landlord shall, in a manner itdeems proper in its reasonable opinion, maintain the Common Areas, establish andenforce reasonable rules and regulations concerning such areas, close any of theCommon Areas to whatever extent required in the reasonable opinion of Landlord’scounsel to prevent a dedication of any of the Common Areas or the accrual of anyrights of any person or of the public to the Common Areas, close temporanly any ofthe Common Areas for maintenance purposes, and make changes to the CommonAreas, including, without limitation, changes in the location of driveways, entrances,exits, vehicular parking spaces, parking area, the designation of areas for the

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exclusive use of others, the direction of the flow of traffic or construction of additionalbuildings thereupon, and shall provide written notice to Tenant of all materialchanges. Tenant hereby acknowledges that Landlord is under no obligation toprovide security for the Common Areas, but may do so at its option. Access, parkingand other Common Areas shall be subject to such rules and regulations anddeterminations and designations as Landlord may establish, or as may beestablished by said reciprocal or other easement agreements from time to time.

9. Alterations. Improvements. Fixtures and Signs.

9.1 Alterations and Additions; Restoration. Tenant shall not proceedwith major or permanent remodel work, or replace or make any major or permanentalterations, additions or improvements to the Premises without prior written notice toor approval from Landlord as set forth below. Notwithstanding the preceding,Landlord is aware that Tenant will be altering interior walls and partitions, andLandlord approves of the same and agrees that such modifications shall not besubject to the provisions of Paragraph 9 hereof, provided that Paragraph 9.5 shall stillapply. Prior to the surrender of the Premises by Tenant at the end of its tenancy.Tenant shall have made all necessary repairs to any damage caused by Tenant suchthat the Premises are restored to their condition as of the Effective Date hereof,reasonable wear and tear excepted; provided, however, that Landlord and Tenantcan agree to permit Tenant to vacate the Premises subject to completing all requiredrestoration thereafter.

9.2 Reguirements for Alterations. Any permanent alterations,additions or installations made to the structure of the Building in excess of a cost of$25,000 to be performed by Tenant (hereinafter collectively “alterations’~ shall besubject to strict conformity with the following requirements; provided, however, thatthis Section 9.2 shall not apply to any temporary work done by Tenant within thePremises or permanent work done up to a maximum cost of $25,000:

(1) All alterations shall be at the sole cost and expense ofTenant;

(2) Prior to commencement of any work covered by thisSection 9.2; Tenant will discuss with Landlord the general plans andspecifications prepared by Tenant’s architect (hereinafter referred to as“Plans”) of the proposed alterations, which shall be subject to the prompt andreasonable consent of Landlord. Within five (5) calendar days after receiptthereof, Landlord shall either approve the Plans or provide Tenant with adetailed explanation of the reasons for disapproval. If Landlord fails toapprove or disapprove the Plans within such five (5) day period, the Plansshall be deemed disapproved; provided, however, that Tenant shall have theright to make all pre-approved alterations listed in Exhibit C attached hereto atany time during the term of this Lease, including Option periods:

(3) No alterations shall be commenced without Tenant havingpreviously obtained all appropriate permits and approvals required by and ofgovernmental agencies;

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(4) All alterations shall be performed in a skillful andworkmanlike manner by Tenants contractor, which contractor shall belicensed to work in the State of Hawaii, consistent with the practices andstandards of the construction industry in constructing temporary structures,and pursued with diligence in accordance with the Plans previously approvedby Landlord and in full accord with all applicable laws and ordinances,including, but not limited to the Americans with Disabilities Act, unlesscompliance is waived by the appropriate governmental authority. AU material,equipment and articles incorporated in the alterations are to be new and ofrecent manufacture (unless the production requires an aged effect);

(5) Tenant’s contractor shall maintain all appropriateinsurance reasonably required by Landlord, including, if required by law,commercial general liability, workers’ compensation, builders’ risk insuranceand construction insurance;

(6) The alterations must be performed in a manner such thatthey will not unreasonably interfere with the quiet enjoyment of the othertenants in the Building.

9.3 Signs. Tenant shall not damage or deface the Premises, shallnot drill holes in the Building or place thereon any signs, placards, blinds or awnings,and shall not paint any portion of the Premises without first obtaining the writtenconsent and approval of Landlord. Landlord acknowledges that Tenant may bedrilling holes and affixing signs and placards within the Premises, and Landlordagrees to same; provided, however, that prior to the temiinafion of this Lease, Tenantshall remove all signs and repair any damage therefrom and repair any holes drilledby Tenant

9.4 Performance and Payment Bond. For any work subject toSection 9.2 above and upon Landlord’s request, Tenant shall, prior to thecommencement of construction, furnish to Landlord written evidence reasonablysatisfactory to Landlord that Tenant or Tenants contractor has on deposit in afinancial institution or is entitled to sufficient funding in a total sum not less than anamount equal to the total estimated cost of such construction, which evidence, atLandlord’s reasonable election, shall include written evidence of a construction loanor other agreement providing for the orderly disbursement of funds ratably accordingto the work completed, less only a reasonable retainage. If Tenant or its contractorhas procured a performance and payment bond for construction of any alterations,additions or improvements, such performance and payment bond shall nameLandlord as an obligee. Upon compliance by Tenant with the requirements and uponobtaining the written consent of Landlord, Tenant may commence the newconstruction. Without limiting other provisions contained herein concerning liabilityinsurance, tenant shall carry adequate insurance to cover liability for personal injuryor property damage during progress of the work.

9.5 Liens. Tenant shall keep the Premises and the Real Property (ifany non-Premises areas are used by Tenant, and if so then only as to those areas)free from any liens arising out of any work performed, materials furnished orobligations incurred by Tenant. In the event a mechanic’s or other lien is filed againstthe Premises or the Real Property as a result of a claim arising through Tenant,

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Tenant, upon adequate written notice and a reasonable opportunity to cure, willpromptly within thirty (30) days commence action to resolve the lien within areasonable period, and Tenant agrees to indemnify, defend and hold harmlessLandlord against liability for the same. In addition, if Tenant has not commencedresolution within the prescribed time period, and Landlord reasonably and in goodfaith believes it is to its best interest to pursue resolution on its own, then Landlordmay participate in any action to foreclose such lien, but in that event Tenant shall notbe obligated to indemnify, defend and hold harmless Landlord. Landlord in its goodfaith reasonableness may pay the claim prior to the enforcement thereof (after theabove-referenced required notice and cure period), in which event, subject toTenant’s approval after construing the fairness and reasonableness of suchsettlement by Landlord, Tenant shall reimburse Landlord in full for payment of theclaim with the next due rental, subject to verified written documentation andinvestigation thereof.

9.6 Initial lm~rovements by Tenant. Subject to compliance with theother provisions of this Section 9, Landlord agrees that Tenant may construct lightingimprovements within the Premises and related work.

10. Insurance. Indemnity. Liability.

10.1 Liability Insurance. Tenant shall procure, at its sole cost andexpense, and keep in force during the term of this Lease, a Commercial GeneralLiability policy and an Excess/Umbrella Liability policy written on an occurrence formto include coverage for (1) premises and operations, (2) products and completedoperations, and (3) blanket contractual liability. Such policies for bodily injury andproperty damage, combined single limit, shall have minimum limits of $1,000,000 peroccurrence, $5,000,000 general aggregate insurance and $5,000,000 products andcompleted operations aggregate. The policies shall name Landlord as an additionalassured with an insurance company authorized to do business in the State of Hawaii.The foregoing.minimum limits or such other coverage may be increased as Landlordmay from time to time reasonably establish with due regard to prudent businesspractices then prevailing in the City and County of Honolulu as may then bereasonably adequate for Landlord’s protection.

10.2 Property Insurance. Landlord shall at all times during the term ofthis Lease, keep insured all buildings now or hereafter on the Real Property,including the Premises, against loss or damage by fire and extended coverage risks,including demolition clause where applicable, in the joint names of Landlord, feeowner of the Real Property and mortgagee, if any, and any other required party, astheir interests may appear, payable in case of loss to Landlord, with insurancecompanies authorized to do business in the State of Hawaii and satisfactory toLandlord.

10.3 Tenant’s Improvements. Tenant shall procure, at its sole costand expense, and keep in force during the term of this Lease, a policy of insuranceinsuring all of Tenant’s improvements and personal property in the Premises.

10.4 Provertv of Tenant. All personal property of any kind ordescription whatsoever on the Premises shall be at Tenant’s sole risk, and Landlordshall not be liable for any damage done to or loss of such personal property or

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damage or loss suffered by the business or occupation of Tenant arising from any actor neglect of co-tenants or other occupants of the Building or of their employees or ofother persons. Notwithstanding the foregoing, Landlord shall be responsible for anydamage done or loss of such personal property or damage or loss suffered by thebusiness or occupation of Tenant arising from any act of gross negligence or willfulmisconduct by Landlord or Landlord’s authorized agents and representatives.

10.5 Waiver of Subro~jation. Landlord and Tenant release each other,and their respective authorized representatives, from any claims for damage to thePremises and Building, and to the fixtures, personal property, tenant improvements,and alterations of either Landlord or Tenant in or on the Premises and Building thatare caused by or result from risks insured against under any insurance policiescarried by Landlord or Tenant and in force at the time of such damage, exceptif suchclaims for damages are due to the negligence or wiliftil misconduct of the partyseeking such waiverfrelease.

10.6 Tenants Indemnification and Hold Harmless. Tenant agrees toindemnify and save Landlord harmless against and from any and all claims by or onbehalf of any person, firm or corporation arising from Tenants use of the Premises orthe conduct of Tenants business or from any activity, work or thing done, permittedor suffered by Tenant, in or about the Premises from and after the commencement ofthis Lease, and shall further indemnify and save Landlord harmless against and fromany and all claims arising from any breach or default on Tenants part In theperformance of any covenant or agreement on Tenants part to be observed andperformed, or arising from any act or negligence of Tenant, or any of Tenant’sagents, contractors, employees, licensees or visitors. Notwithstanding the foregoing,Tenant shall not indemnify Landlord for the negligence or willful misconduct ofLandlord, Landlord’s employees or agents, and Landlord shall hold Tenant harmlessfrom all claims and liability arising out of any damage resulting from the negligence orwillful misconduct of Landlord, Landlord’s employees or agents. Tenants andLandlord’s obligation to indemnify and hold the other party harmless shall be limitedto the sum that exceeds the amount of insurance proceeds, if any, received by theparty being indemnified. As used herein “claims” shall include, without limitation, alllosses, damages, liabilities, law suits, judgments, reasonable costs, reasonableoutside attorney’s fees, and reasonable expenses incurred in connection with any ofthe foregoing. In case any action or proceeding be brought against Landlord byreason of any such claim for which Tenant is liable hereunder, Tenant upon noticefrom Landlord covenants to resist and defend at Tenant’s sole reasonable expensesuch action or proceeding by legal counsel reasonably satisfactory to Landlord.Counsel selected by Tenant’s insurance companies, acting reasonably, shall bedeemed satisfactory to Landlord. Except if due to the negligence or willfulmisconduct of Landlord, Tenant assumes all risk of damage caused by Tenant toproperty, in, upon or about the Premises from any source and to whomeverbelonging, and Tenant waives all claims in respect thereof against Landlord andagrees to defend and save Landlord harmless from and against any such claims byothers.

10.7 Insurance Policies and Certificates. Tenant shall provideLandlord with certificates of insurance evidencing all insurance policies obtained byTenant pursuant to the terms of this Lease. Thereafter, Tenant may provide Landlordwith renewal certificates of such insurance.

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11. Reserved.

12. Assignment and Subletting.

12.1 Lease is Personal. The purpose of this Lease is to transferpossession of the Premises to Tenant for Tenants personal use in return ftr certainbenefits, including rent, to be transferred to the Landlord. Tenants right to assign orsublet as stated in this Section is subsidiary and incidental to the underlying purposeof this Lease. Tenant acknowledges and agrees that it has entered into this Lease inorder to acquire the Premises for its own personal use and not for the purpose ofobtaining the right to convey the leasehold to others.

12.2 “Transfer of the Premises” Defined. The terms ‘Transfer of thePremises” or ‘Transfer” as used herein shall include any assignment of all or any partof this Lease (including assignment by operation of law), subletting of all or any partof the Premises or transfer of possession, or right of possession or contingent right ofpossession of all or any portion of the Premises. including without limitation,concession, mortgage, devise, hypothecation, agency, franchise or managementagreement, or to suffer any other person (the agents and servants of Tenantexcepted) to occupy or use the said Premises or any portion thereof. If Tenant is acorporation which is not deemed a public corporation, or is an unincorporatedassociation or partnership, or Tenant consists of more than one party, the transfer,assignment or hypothecation of any stock or interest in such corporation, association,partnership or ownership interest, in the aggregate in excess of twenty-five percent(25%), shall be deemed a Transfer of the Premises.

12.3 No Transfer Without Consent. Tenant shall not suffer a Transferof the Premises or any interest therein, or any part thereof, or any right or privilegeappurtenant thereto without the prior written consent of Landlord, and a consent toone Transfer of the Premises shall not be deemed to be a consent to any subsequentTransfer of the Premises. Any Transfer of the Premises without such consent shallbe void, and shall, at the option of Landlord, terminate this Lease. Notwithstandingthe foregoing, Tenant shall have the right, without the consent of Landlord, but uponprior written notice to Landlord, to assign this Lease to any subsidiary or parentcompany of Tenant, or affiliated organization that comes under the ownershipumbrella of Tenanrs parent company.

12.4 When Consent Granted. The consent of Landlord to a Transfermay not be unreasonably withheld, provided should Landlord withhold its consent forany of the following reasons or other similar reasons typically of concern to landlordsregarding a transferee’s financial strength, reputation or safety, such withholding shallbe deemed to be reasonable:

(1) Financial strength of the proposed transferee is not atleast equal to that of Tenant at the time of execution of this Lease;

(2) A proposed transferee whose occupation of the Premiseswould cause a diminution in the reputation of the Building or the otherbusinesses located therein;

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(3) A proposed transferee whose impact on the commonfacilities or the other occupants of the Building would be, in Landlord’sreasonable judgment, disadvantageous due to increased danger or risk; or

(4) A proposed transferee whose occupancy will require avariation in the terms of the Lease.

12.5 Procedure for Obtaining Consent. Landlord need not commenceits review of any proposed Transfer, or respond to any request by Tenant withrespect to such, unless and until it has received from Tenant adequate descriptiveinformation concerning the business to be conducted by the proposed transferee, thetransferee’s financial capacity, and such other information as may reasonably berequired in order to-form a prudent judgment as to the acceptability of the proposedTransfer, including, without limitation, the following:

(1) The past two year% Federal Income Tax returns of theproposed transferee (or in the alternative the past two years audited annualBalance Sheets and Profit and Loss statements, certified correct by a CertifiedPublic Accountant);

(2) Banking references of the proposed transferee;

(3) A resume of the business background and experience ofthe proposed transferee; and

(4) An executed copy of the instrument by which TenantJ proposes to effectuate the Transfer.

Tenant shall reimburse Landlord as additional rent for one-half of Landlord’sreasonable costs and reasonable outside attorneys’ lees incurred in conjunction withthe processing and documentation of any proposed Transfer of the Premises,whether or not such consent is granted.

12.6 Recapture. By written notice to Tenant (the “TerminationNotice”) within twenty (20) business days following submission to Landlord by Tenantof the information specified in Section 12.5, Landlord may, but shall not be obligatedto, (1) terminate this Lease in the event of an assignment of this Lease or sublet theentire Premises, or (2) terminate this Lease as to the portion of the Premises to besublet, if the sublet is to be of less than the entire Premises. Upon the terminationdate of this Lease, if Landlord exercises its rights under this Section, Landlord shallpay to Tenant the unamortized cost of Tenant’s leasehold improvements multipliedby that fraction the numerator of which is the rentable square footage of the area forassignment or sublease, and the denominator of which is the rentable square footageof the area of the entire Premises before such Transfer. In the event Landlord electsto terminate under the provisions hereof, and the area to be terminated is less thanthe entire Premises, an amendment to this Lease shall be executed in whichTenant’s obligations for rent and other charges shall be reduced In proportion to thereduction in the size of the Premises caused thereby by restating the description ofthe Premises, and its monetary obligations hereunder shall be reduced by multiplyingsuch obligations by a fraction, the numerator of which is the rentable square footageof the area of the Premises offered for sublease and the denominator of which is the

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rentable square footage of the area of the Premises immediately prior to suchtermInation.

12,7 Effect of Transfer. If Landlord consents to a Transfer, thefollowing conditions shall apply:

(1) Each and every covenant, condition or obligation imposedupon Tenant by this Lease and each and every right, remedy or benefitafforded Landlord by this Lease shall not be impaired or diminished as a resultof such Transfer.

(2) On a monthly basis, any sums of money, or othereconomic consideration received by Tenant from the Transferee in suchmonth (whether or riot for a period longer than one month), including higherrent, bonuses, key money, or the like which exceed, in the aggregate, the totalsums which Tenant pays Landlord under this Lease in such month, or theprorated portion thereof if the Premises transferred is less than the entirePremises, shall be payable fifty percent (50%) to Landlord and fifty percent(50%) to Tenant, and Landlord’s share shall be paid with Tenant’s payment ofmonthly rent.

(3) No Transfer, whether or not consent of Landlord isrequired hereunder, shall relieve Tenant of its primary obligation to pay therent and to perform all other obligations to be performed by Tenant hereunder.The acceptance of rent by Landlord from any person shall not be deemed tobe a waiver by Landlord of any provision of this Lease or to be a consent toany Transfer of the Premises.

(4) If Landlord consents to a sublease, such sublease shallnot extend beyond the expiration of the term or last Option period of thisLease.

(5) No Transfer shall be valid and no transferee shall takepossession of the Premises or any. part thereof unless, within ten (10) daysafter the execution of the documentary evidence thereof, Tenant shall deliverto Landlord a duly executed duplicate original of the Transfer instrument inform satisfactory to Landlord which provides that (i) the transferee assumesTenant’s obligations for the payment of rent and for the full and faithfulobservance and performance of the covenants, terms and conditionscontained herein, (ii) such transferee will, at Landlord’s election, attorn directlyto Landlord in the event Tenant’s Lease is terminated for any reason on theterms set forth in the instrument of transfer and (iii) such instrument of transfercontains such other assurances as Landlord reasonably deems necessary.

13. Damage to Premises.

13.1 Rights of Termination. Landlord and Tenant acknowledge andagree that the nature of Tenant’s activities on the Premises require that Tenant havefull access and functionality of the Premises, in particular the Building, to meet itsdeadlines and contractual obligations with third parties. Even minor loss offunctionality of the Building may render Tenant’s activities impossible or

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impracticable. In the event the Premises suffers (a) an “uninsured property los&’ or(b) a property loss which cannot be repaired within sixty (60) days from the date ofdestruction under the laws and regulations of state, federal, county or municipalauthorities, or other authorities with jurisdiction, Landlord may terminate this Lease asof the date of the damage upon written notice to Tenant following the uninsuredproperty Toss) unless Tenant has already previously terminated according to thefollowing circumstances. In the event of an uninsured property loss or any propertyloss to the Premises which cannot be remedied within forty-eight (48) hours of itsoccurrence and!or interferes or obstructs in any manner or degree with Tenant’sactivities hereunder, Tenant shall have the immediate right to terminate the Lease bywritten notice to Landlord within twenty (20) days of Tenants discovery of theproperty loss or following notice from Landlord of the property loss, and Tenant’sobligations for the payment of rent, utilities, taxes and any other payments shallimmediately cease and terminate as well, with the exception of the terminationpayment set forth below. Landlord shall make Its best efforts to provide notice toTenant of such determination as soon as possible following the date of destruction,and to resolve and remedy the circumstances as expeditiously as possible. For thepurposes & this Lease, the term “uninsured property loss” shall mean any lossarising from a peril not covered by the standard form of Commercial Property ISOinsurance policy.

In the event Tenant elects to terminate this Lease as set forth in this Section 13.1,then upon such termination Tenant shall pay to Landlord the equivalent of forty-five(45) days’ rent at the then current rental rate.

13.2 Repairs. In the event of a property loss which may be fullyrepaired within forty-eight.(48) hours from the date of the damage, or, In thealternative, in the event the parties do not elect to terminate this Lease under theterms of Section 13.1 above, then this Lease shall continue in full force and effectand Landlord shall forthwith undertake to make such repairs to reconstitute thePremises to as near the condition as existed.prior to the property loss as practicable;provided, however that if Landlord does not commence such repairs to the Premiseswithin forty-eight (48) hours of the date of destruction, Tenant may commence therepairs on Landlord’ s behalf in accordance with Section 13.3 below, and, furtherprovided that, should Tenant in its reasonable discretion determine that the Premisesare not repairable or no longer usable or operational in accordance with Tenant’sstated production activities, or if Landlord refuses for any reason to timelyreconstitute the Premises, then Tenant shall have the option of immediatelyterminating the Lease upon written notice to Landlord and Tenants obligations forthe payment of rent, utilities, taxes and any other payments shall immediately ceaseand terminate as well, with the exception of the termination payment set forth below.Such partial destruction shall annul or void this Lease unless otherwise agreed byTenant, except that Tenant shall be entitled to a proportionate reduction of rentfollowing the property loss and until the time the Premises are restored. Suchreduction shall be an amount which reflects the degree of interference with Tenantsbusiness. So long as Tenant conducts its business in the Premises, there shall be noabatement until the parties agree on the amount thereof.

In the event Tenant elects to terminate this Lease as set forth in this Section 13.1.then upon such termination Tenant shall pay to Landlord the equivalent of forty-five(45) days’ rent at the then current rental rate.

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13.3 Repair Costs. The cost of any repairs to be made by Landlord,pursuant to Section 13.2 of this Lease, shall be paid by Landlord utilizing all availableinsurance proceeds and without credits, set-offs or subordination Df any kind.

14. Surrender.

14.1 Surrender. At the end of the term or last Option period or othersooner termination of this Lease, Tenant shall peaceably deliver up to Landlordpossession of the Premises, together with all improvements upon or belonging to thesame, by whomsoever made, in the same good repair, order and condition as on theCommencement Date, normal wear and tear excepted, induding the repair and/orreplacement of any walls within the Premises or planters which Tenant may havemoved or removed, to their previously existing condition, if Landlord instructs Tenantto do so. My construction or other improvements made to the Premises by Tenant,which Landlord desires to keep and maintain on the Premises, shall be subject togood faith negotiation between the parties; provided however, that any lighting,partitions, plumbing, electrical wiring upon the Premises installed by Tenant shall bethe property of Landlord. Upon the expiration or earlier termination of this Lease,Tenant shall have the right to remove any and all trade fixtures (removable withoutdamage to the Building or the Premises), temporary structures and sets, andpersonal equipment. Tenant shall close all holes resulting from Tenants removal offixtures and make all other repairs necessitated by Tenant’s use and occupation ofthe Premises. If such trade fixtures, temporary structures and sets, and personalequipment are not removed by Tenant on or before the expiration or earliertermination of this Lease, unless Landlord has agreed to alternative terms, Landlordmay remove the same, without notice thereafter, or consider the same as abandonedproperly and take title thereto and utilize the security deposit for the reasonable coststhereof, to the extent necessary, and charge any reasonable costs of such removal inexcess of the amount of the security deposit to Tenant. Tenant shall also remove allof its other personal property from the Premises. Within forty-eight (48) hours noticeby Tenant of the end of its tenancy hereunder and in anticipation of its surrender ofthe Premises to Landlord upon termination or expiration of the Lease in associationtherewith, Landlord and Tenant shall conduct a walkthrough inspection of thePremises. Upon Landlord’s reasonable satisfaction with the Premises, Landlord shallaccept Tenants surrender of the Premises and this Lease shall terminate. Upon suchtermination, Tenant shall have either completed all repair and restoration resultingfrom its use of the Premises, or, Landlord shall have agreed to terminate the Leasesubject to Tenant completing repairs and restoration within a reasonable timethereafter.

14.2 Holding Over, If, with the permission of Landlord, Tenantremains in possession of the Premises after the expiration of the term or lastapplicable Option period, Tenant shall be deemed to be occupying the Premises as atenant from month-to-month, at the same rent and subject to all of the other termsand conditions of this Lease effective immediately prior thereto. If without thepermission of Landlord, Tenant remains in possession of the Premises after thetermination of this Lease, Tenant shall pay as liquidated damages for each daypossession is withheld, an amount per day equal to double the rent payable byTenant immediately prior to the termination of this Lease, computed on a daily basis.

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15. Default and Remedies.

15.1 Default. The occurrence of any of the following shall constitute amatenal default and breach of this Lease by Tenant

(1) Any uncured failure by Tenant to pay the rental or to makeany other payment required to be made by Tenant hereunder when due;

(2) The abandonment or vacation of the Premises by Tenant;

(3) A failure by Tenant to observe and perform any othermaterial provision of this Lease to be observed or performed by Tenant, wheresuch failure continues for ten (10) business days after written notice thereof byLandlord to Tenant provided, however, that if the nature of the default is suchthat the same cannot reasonably be cured within the ten (10) day periodallowed, Tenant shall not be deemed to be in default if Tenant shall, withinsuch ten (10) day period, commence to cure and thereafter reasonablydiligently prosecute the same to completion;

(4) Either (I) the appointment of a receiver (except a receiverappointed at the instance or request of Landlord) to take possession of all orsubstantially all of the assets of Tenant, or (ii) a general assignment by Tenantfor the benefit of creditors, or (iii) any action taken or suffered by Tenant underany insolvency or bankruptcy act shall constitute a breach of this Lease byTenant. In such event, Landlord may, at Its option, declare this Leaseterminated and forfeited by Tenant, and Landlord shall be entitled toimmediate possession of the Premises. Upon such notice of termination, thisLease shall terminate immediately and automatically by its own limitation.

15.2 Remedies. The rights and remedies of Landlord in the event ofany uncured breach by Tenant of this Lease shall be limited to Landlord’s right torecover damages, if any, in an action at law [subjeotlo Paragraph 21.11 Arbitrationclause of this Lease]. In no event shall Landlord be entitled to terminate or rescindany right granted to Tenant hereunder or to enjoin or restrain or otherwise impair inany manner the production, distribution, or exploitation of Tenantspilotlserieslprogram, or any parts or elements thereof, or the use, publication ordissemination of any advertising, publicity or promotion in connection therewith.

15.3 Recovery of Rent: Reletting. In the event of the vacation orabandonment of the Premises by Tenant, Landlord may reenter and take possessionof the Premises pursuant to legal proceeding or pursuant to any notice provided bylaw, then, it Landlord does not elect to terminate this Lease, this Lease shall continuein effect for so long as Landlord does not terminate Tenant’s right to possession, andLandlord may enforce all its rights and remedies under this Lease, including, withoutlimitation, Landlord’s right, from time to time, without terminating this Lease, to eitherrecover all rental as it becomes due or relet the Premises or any part thereof for suchterm or terms and at such rental or rentals and upon such other terms and conditionsas Landlord in its sole discretion, may deem advisable with the right to makealterations and repairs to the Premises; provided, however, that Landlord shall beunder an affirmative obligation to use reasonable efforts to mitigate damages,including but not limited to reletting the Premises as soon as practicable at the then

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current market rate. Acts of maintenance or preservation or efforts to relet thePremises or the appointment of a receiver upon initiation of Landlord or other legalproceeding granting Landlord or its agent possession to protect Landlord’s interestunder this Lease shall not constitute a termination of Tenant’s right to possession. Inthe event that Landlord shall elect to so relet, Landlord shall have the right to removeall persons and property from the Premises; such properly may be removed andstored in a public warehouse or elsewhere at the reasonable cost and for the accountof Tenant. In the event that Landlord shall elect to so relet, then rentals received byLandlord from such reletting shall be applied; first, to the payment of anyindebtedness other than rent due hereunder from Tenant to Landlord; second to thepayment of any reasonable and necessary cost of such reletting; third, to thepayment of the reasonable cost of any required alterations and repairs to thePremises; fourth, to the payment of rent due and unpaid hereunder~ and the residue,if any, shall be held by Landlord and applied in payment of future rent as the samemay become due and payable hereunder. Should that portion of such rentalsreceived from such reletting during any month, which is applied by the payment ofrent hereunder, be less than the rent payable during that month by Tenanthereunder, then Tenant shall pay such deficiency to Landlord immediately upondemand therefor by Landlord. Such deficiency shall be calculated and paid monthly.Tenant shall also pay to Landlord, as soon as ascertained and verified as necessaryto reletting the Premises, any reasonable costs and reasonable expenses incurred byLandlord in such reletting or in making such alterations and repairs not covered bythe rentals received from such reletting. No reentry or taking possession of thePremises or any other action under this Section shall be construed as an election toterminate this Lease unless a written notice of such intention be given to Tenant orunless the termination thereof be decreed by a court of competent jurisdiction.Notwithstanding any reletting without termination by Landlord because of anymaterial uncured default by Tenant, Landlord may at any time after such relettingelect to terminate this Lease for any such uncured default.

15.4 No Waiver. Efforts by Landlord to mitigate the damages causedby Tenant’s default of this Lease shall not constitute a waiver of Landlord’s right torecover damages hereunder.

15.5 Advances by Landlord and Delinquent Rentals. If Tenant fails tomake any of the payments such as for general excise taxes or utilities, required to bemade under this Lease, or by any act or neglect of Tenant, after adequate writtennotice by Landlord and a reasonable opportunity to cure, causes Landlord’s interestin the Premises or any portion thereof to be jeopardized in any manner, Landlordmay make any or all such payments for Tenant’s account and Tenant shall forthwithrepay to Landlord such advances, together with any reasonable costs andreasonable outside attorney’s fees which may thereby be incurred. All delinquentrentals and all such advances made by Landlord shall bear interest from the due dateat twelve percent (12%) per year.

15.6 Cumulative Remedies. The various rights, options, electionpowers and remedies of Landlord contained in this Section 15 and elsewhere in thisLease shall be construed as cumulative and no one of them exclusive of any othersor of any legal or equitable remedy which Landlord might otherwise have in the eventof uncured breach or default, and the exercise of one right or remedy by Landlordshall not in any way impair its right to any other right or remedy.

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16. Condemnation. If at any time during the term or Option period(s) of thisLease the Premises or any part thereof shall be taken or condemned in fee for anypublic use by any authority or corporation having the power of eminent domain, thenand in every case the estate and interest of Tenant in the Premises so taken shall atonce cease and determine, and Tenant shall not by reason of such taking orcondemnation be entitled to any claim against either Landlord or others forcompensation or indemnity for leasehold interest or for any land or improvementsthereon except as herein expressly provided but Landlord shall work with any suchauthority or corporation to ensure Tenant a reasonable opportunity to remove andreclaim all properly and possessions, including any improvements, belonging to ormade by Tenant. All compensation payable or to be paid by reason thereof shall bepayable to and be the sole property of Landlord, and Tenant shall have no interest inor claim to such compensation or any part thereof whatsoever. If a part of thePremises shall be so taken or condemned, the rent thereafter payable for theremainder of the term or Option period(s) shall be reduced in the proportion that thearea of land so taken bears to the total area demised, up to and including a onehundred percent (100%) reduction of all Tenants payments of rent, fee, utilitiesand!or tax. As more fully described in Paragraph 13 hereof, should Tenant’s use ofthe Premises, in particular the Building, be impaired or diminished in any manner,due to condemnation under this Paragraph 16 or otherwise, then Tenant shall havethe immediate right and option to terminate this Lease, and all payments hereundershall also immediately cease forever. Furthermore, Tenant shall have the right toclaim and recover from the condemning authority, but not from Landlord (unlessTenant’s compensation is included in Landlord’s award), such compensation as maybe separately recoverable by Tenant in Tenant’s own right for any damages toTenant’s business on the Premises or for any cost or loss to Tenant in altering anyimprovements thereon or in removing Tenant’s equipment, structures, sets, fixtures,merchandise, furniture and other personal property therefrom by reason of suchtaking, so long as such action or the payment of such compensation shall not affector diminish the compensation payable to Landlord, but Landlord shall be prohibitedfrom including any of Tenants property, possessions and improvements in thevaluation of its condemned leasehold.

17. No Abatement of Rent. Except as otherwise provided in this Lease,neither partial nor total destruction of any building or improvement by fire, elementsor other cause shall affect the obligations of Tenant as to payment of rent and therent shall not abate, diminish or cease.

18. Subordination. This Lease shall be subordinate to any ground lease,mortgage, deed of trust or any other hypothecation for security now or hereafterplaced upon the Real Property or a part thereof and to any and all advances madeon the security thereof and to all renewals, modifications, consolidations1replacements and extensions thereof. If any mortgagee, trustee or ground lessorshall elect to have this Lease prior to the lien of its mortgage, deed of trust or groundlease and shall give written notice thereof to Tenant, this Lease shall be deemedprior to such mortgage, deed of trust or ground lease, whether this Lease is datedprior or subsequent to the date of said mortgage, deed of trust or ground lease or thedate of recording thereof.

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18.1 Subordinate to Ground Lease. This Lease is expressly subjectand subordinate to all of the provisions of that certain Indenture of Lease datedJuly 2, 1970 (herein referred to as “Ground Lease”), by and between the Trustees ofthe Estate of Samuel Mills Damon, Deceased (“Ground Lessor) and Eastman KodakCompany, as amended or assigned from time to time, the ground lessors Interesttherein having been assigned to LTMAC Properties LLC, a Maryland limited liabilitycompany, and the ground lessee’s interest therein having been assigned to Landlord.Tenant covenants with Landlord that it will comply with all applicable provisions of theGround Lease, and will not cause a material default under the Ground Lease.

18.2 Further Documents. Tenant agrees to execute and deliver anydocuments customarily required by lenders, as may be required by any holder orproposed holder of any mortgage, deed of trust or other encumbrance now orhereafter placed, charged or enforced against Landlord’s interest in this Lease andthe leasehold estate thereby created or all or any part of the land, buildings orimprovements included in the Building so long as Tenant has received satisfactorynondisturbance agreements. Tenant shall execute and deliver such documents atany time and from time to time upon request by Landlord within ten (10) days fromwritten notice from Landlord. Landlord shall be responsible for all costs incurred inthe preparation of such documents, including but not limited to any costs associatedwith Tenant’s execution and delivery of such documents, including its consultant’s, in-house or outside counsel’s review of such documents.

19. Sale of Premises. In the event of a sale or conveyance by Landlord ofLandlord’s interest in the Premises or the Building, Landlord shall be released fromany future liability under this Lease, with the successor in interest to Landlord to besolely liable to Tenant.

20. Notices. Any notice, communication, approval, disapproval, request orreply (hereinafter called “Notice”) provided in this Lease or permitted to be given,made or accepted byelther party to the other, must be in writing, and shall bedeemed to have been duly given on the date of service if given or served personallyon the party to whom notice is to be given, or on the third day after mailing iftransmitted by facsimile and confirmed by Federal Express or similar overnightcourier service or by prepaid certified or registered mall addressed to the party towhom notice is to be given. Each party hereto shall have the right from time to timeto change its address, by giving Notice in writing to the other party as hereinprovided, at least five (5) business days prior to the effective date of such change ofaddress.

21. Miscellaneous Provisions.

21.1 Time of Essence. Time is of the essence for all provisions of thisLease bearing clearly defined and specific time and date requirements.

21.2 Late Payment Penalty. If Landlord or Tenant shall fail to pay tothe other party, any of the sums, costs and expenses enumerated in this Lease, andsuch non-payment shall continue for a period of ten (10) days, the delinquent partyshall pay to the other party, a “late charge” equal to one percent (1%) of the amountthen due to defray additional costs incurred in connection with the delinquent

24

payment. The late charge shall be in addition to any other remedy of the non-delinquent party described in this Lease.

21.3 Interest. Any and all sums due under this Lease, whether byLandlord or Tenant, which are unpaid when due (after all applicable notice and cureperiods) shall bear Interest at a rate equal to the then current prime rate publishedfrom time to time in the Wall Street Journal, non-compounded, non-cumulative, untilfully paid.

21.4 Choice of Law. This Lease shall be governed by the laws of theState of Hawaii.

21.5 Entire Agreement. This Lease and the Exhibits attached to it, setforth all the covenants, promises, agreements, conditions and understandingsbetween Landlord and Tenant concerning the Premises, and there are no covenants,promises, agreements, conditions or understandings, either oral or written, betweenthem other than as are set forth. Except as otherwise provided, no subsequentalteration, amendment, change or addition to this Lease shall be binding uponLandlord or Tenant unless in writing and signed by them.

21.6 Severability. If any term of this Lease or any application thereofshall be invalid or unenforceable, the remainder of this Lease and any otherapplication of such term shall not be affected thereby.

21.7 No Accord and Satisfaction. No payments by Tenant or receiptby Landlord of a lesser amount than the rent stipulated in this Lease shall be deemedto be other than on account of the earliest stipulated rent, nor shall any endorsementor statement on any check or any letter accompanying any check or payment as rentbe deemed an accord and satisfaction, and Landlord may accept such check orpayment without prejudice to Landlord’s right to recover the balance of such rent orpursue any other remedy in this Lease provided.

21.8 Successors and Assjqj~. All of the terms, covenants andconditions of this Lease shall inure to the benefit of and be binding upon thesuccessors and assigns of Landlord and upon the successors andlor heirs, legalrepresentatives and permitted assIgns of Tenant to the same extent as the terms,covenants and conditions Inure to the benefit of and are binding upon Landlord andTenant, respectively. In any case where there shall be mare than one Tenant, eachTenant shall be jointly and severally liable hereunder. The use of any gender shallinclude any and all genders, and the use of any number shall be construed assingular or plural, as the case may require.

21.9 No Partnership Intended. Landlord does not, in any way or forany purpose, become a partner of Tenant in the conduct of its business, or otherwise,or joint venturer or a member of a joint enterprise with Tenant.

21.10 No Party Deemed Drafter. No party shall be deemed to be thedrafter of this Lease. If this Lease is ever construed or interpreted by a court of lawor other authority before which this Lease is properly presented, such court or otherauthority shall not construe this Lease or any provision hereof against either party asthe drafter.

25

21.11 Arbitration. Except as otherwise provided in this Lease, allmatters of disagreement or dispute that may arise under this lease which cannot beadjusted by the parties hereto to their mutual satisfaction and which shall beexpressly made subject to determination by arbitration as provided in this lease shallbe submitted to and determined by three (3) arbitrators in the manner prescribed byChapter 658A of the Hawaii Revised Statutes, as the same is now or may from timeto time be amended. In any such case either party may give to the other writtennotice of the desire to so arbitrate the matter in question and shall appoint onearbitrator in such notice, whereupon the other party shall, within ten (10) days afterreceipt of such notice, appoint a second arbitrator, and in case of failure so to do theparty who has already named an arbitrator may request any Judge of the CircuitCourt of the First Circuit of the State of Hawaii to appoint such second arbitrator, andthe two arbitrators so appointed (in either manner) shall select and appoint a thirdarbitrator; in the event that the two arbitrators so appointed shall fail to select andappoint a third arbitrator within ten (10) days after the appointment of the secondarbitrator, either party may request the appointment of the third arbitrator by any suchJudge; the three arbitrators so appointed shall thereupon proceed to determine thematter in question, difference or disagreement, and the decision of any two of themwithin the range of the matter in issue shall be final, conclusive and binding uponboth parties unless vacated, set aside or modified as provided by the statuteaforesaid. The arbitrators shall have the power and duties prescribed by said statuteand judgment may be entered upon such award by the Circuit Court of the FirstCircuit of the State of Hawaii. Each party shall pay its own expenses and itsattorneys’ fees (if any) but the compensation of the arbitrators shall be borne equallyby both parties. Submission to arbitration of disputed matters shall not excuseperformance of the terms, covenants or conditions of this lease which are not indispute.

21.12 Headings and Paragraphs. The headings of this Lease areinserted only for convenience and reference and shall in no way define, limit ordescribe the-scope or intent of any provision of this Lease.

21.13 Counteroarts. This Lease may be executed in two or morecounterparts1 each of which shall be deemed an original, but all of which togethershall constitute one and the same instrument.

21.14 Facsimile Signatures. Facsimile signatures shall be accepted asoriginal signatures and Landlord and Tenant shall deliver a hard copy with theoriginal signatures to the other.

21.15 No Recordation. This Lease may not be recorded in the Bureauof Conveyances or the Office of the Assistant Registrar of the Land Court of the Stateof Hawaii.

21.16 Authority. The parties signing below represent and warrant thatthey have the requisite authority to bind the entities on whose behalf they are signing.

21.17 Confidentiality. All of the terms of this Lease shall be absolutelyconfidential and the parties to this Lease agree that they shall not communicate,issue, release or otherwise disseminate any information In connection with this Leasewhatsoever or in any way participate in any dissemination of the temis of this Lease

26

to any third party without the prior written consent of the other party. Landlord shallnot make any images via personal photography or recordings of any nature at, of oron any area of the Premises depicting Tenant, Tenant’s personnel, Tenant’s Use ofthe Premises, and/or relating to Tenants pilotlseries/program currently entitled ______

Landlord shall inform all of its tenants, agents and representatives of thisprohibition; provided, however, that Tenant acknowledges and agrees that Landlordhas no actual control over its tenants or other third parties on or near the Premisesand shall not be held liable for any of their respective actions. If Tenant proves thatLandlord breached this provision, Tenant shall be entitled to damages, the exactamount to be determined by judicial proceeding. Moreover, any photography orrecording taken by Landlord relating to Tenant, Tenant’s personnel, Tenants use ofthe Premises, and/or the production of Tenant’s pilot/series/program shall withimmediate effect be deemed Tenant’s owned property (including copyright) to theexclusion of all others, and any use, dissemination or exploitation thereof shall be aviolation of Tenant’s rights thereto. Landlord shall not authorize any advertisingand/or publicity mentioning Tenant and/or Tenant’s production activities hereunder,unless Landlord has received advance written authorization from Tenant.

IN WITNESS WHEREOF, the parties to this Lease have executed thisLease the day and year first above written.

‘OLELO; THE CORPORATION FORCOMMUNITY TELEVISION,a Hawaii corporation

By:

By:

By:

Name:Its:

Name:Its:

“Landlord”

‘Tenant

Name:Its:

27

Attachments:

Exhibit “A” — Description of Real PropertyExhibit “B” — Depiction of PremisesExhibit “C” — N/A

28

to any third party without the prior written consent of the other party. Landlord shallnot make any images via personal photography or recordings of any nature at, of oron any area of the Premises depicting Tenant, Tenant’s personnel, Tenant’s Use ofthe Premises, and/or relating to Tenant’s pilot/series/program currently entitled _____

Landlord shall inform all of its tenants, agents and representatives of thisprohibition; provided, however, that Tenant acknowledges and agrees that Landlordhas no actual control over its tenants or other third parties on or near the Premisesand shall not be held liable for any of their respective actions. If Tenant proves thatLandlord breached this provision, Tenant shall be entitled to damages, the exactamount to be determined by judicial proceeding. Moreover, any photography orrecording taken by Landlord relating to Tenant, Tenant’s personnel, Tenant’s use ofthe Premises, and/or the production of Tenant’s pilot/series/program shall withimmediate effect be deemed Tenant’s owned property (including copyright) to theexclusion of all others, and any use, dissemination or exploitation thereof shall be aviolation of Tenant’s rights thereto. Landlord shall not authorize any advertisingand/or publicity mentioning Tenant and/or Tenant’s production activities hereunder,unless Landlord has received advance written authorization from Tenant.

IN WITNESS WHEREOF, the parties to this Lease have executed thisLease the day and year first above written.

‘OLELO; THE CORPORATION FORCOMMUNITY TELEVISION,a Hawaii corporation

By:Nam&/ R03 j~. Ayncrniw48~.Its: -e~j~n.~ an4 fl~v)

By:N a melIts:

Name:Its:

‘Landlord”

‘Tenant”

9-

By:

27

EXHIBIT “A”

The Lessor in consideration of the rent and covenants set forth and contained in

said agreement and on the part of the Lessee to be paid, observed and performed,does hereby demise and lease unto the Lessee the Premises situate at 1122

Mapunapuna Street, Honolulu, Hawaii 96819, being warehouse and back area yard and

parking space, comprising of 16,598 usable/rentable square feet of warehouse space

as shown on Exhibit “BI” attached hereto and made a part hereof (the “P~mises~ which

are located in the building known as the ‘Olelo Building (TMK No. (1)-1-1-007-041, the

“Property”).

EXHIBIT “W’

I...Na F’ 1%

‘4

~fl ~* Tenant lease area outiLned in orange.

C

puij;.q* aQac

SITE PLAN5CA!Ji r.ety-r

WAPUWAPUNASERECT

0‘Rut ~?n

5Ielo:ThecGa~~Itp Tek~4oa

1122 IUPUIMPW(A SICT

S

=-4

-4‘.4

pr-n

14 Rental Income by Tenant

2011 2010 2009 2008 2007 2006 2005TenantA 561,715,39 432,483.76 398,891.75 412,179.10 395,880.06 377,092.10 355,395.95Tenant B 217,705.61 203,221.76 179,388.80 177,108.59 176,255.91 173,361.30 163,195.52Tenant C 54,567.84 38,691.47 39,761.52 39,252.85 34,780.93 29,610.05 24,569.24Prkg Tenant 4,125.00 2,700.00 0.00 0.00 0.00 0.00 0.00

TOTAL 838,113.84 677,096,99 618,042.07 628,540.54 606,916.go 580,063.45 543,160.71

NOTES: 1. Tenant A - warehouse space in building.2. Tenant B - office space in building.3. Tenant C~ rooftop space and detached facility.4. Prkg Tenant~ 7 parking stalls.5. Tenants A, B and C totals include common area maintenance charges.

NEEDS ASSESSMENT

FOR

‘OLELO COMMUNITY TELEVISION

(EXECUTIVE SUMMARY)

March 24, 2006

Presented by

THE BUSKE GROUP3001 J STREET, SUITE 201SACRAMENTO, CA 95816

(916) 441-6277

NEEDS ASSESSMENT FOR

‘OLELO COMMUNITY TELEVISION

EXECUTIVE SUMMARY

I. INTRODUCTION

‘Olelo Community Television (‘Olelo) is an independent nonprofit organization that

manages public, educational and government access resources and programming that is

presented on the O’ahu cable TV system. The Buske Group was retained by ‘Olelo to

conduct a needs assessment that included opportunities for a large number and wide variety

of groups and individuals to provide input regarding their perception of the services and

resources offered by ‘Olelo to O’ahu residents, community groups, and institutions.

The following groups and individuals were the primary participants in this effort:

• ‘Olelo’s current clients (those who had previously used ‘Olelo’s services);

• Nonprofit and other community groups and individuals that have not used ‘Olelo’sservices in the past;

• Representatives of city, state and federal government agencies;

• Private and public school teachers, media instructors, school principals andsuperintendents.

The Buske Group, with logistical support of the ‘Olelo staff, conducted a needs

assessment that included 15 focus group and brainstorming sessions with: (1) current ‘Olelo

clients; (2) nonprofit groups and individuals that had not used ‘Olelo’s services; (3)

representatives of city, state and federal government; and (4) private and public school

teachers, media instructors, school principals and superintendents. A total of 157 people

attended the focus group sessions.

I

Each session began with a presentation by the consultant to provide background

information, ensure that the participants understood such terms as ‘PEG Access” and

“Community Media Center,” and provide an overview of how individuals, community groups,

and institutions use PEG Access and CMCs in other cities. Standardized questionnaires,

appropriate for the experience level and concerns of the participants in each focus group

category, were prepared and distributed for them to complete. A consultant-facilitated

“brainstorming” period during each focus group session allowed participants to offer their

observations and concerns regarding ‘Olelo’s strengths and weaknesses in more depth.

Prior to the focus group sessions, standardized questionnaires were prepared and

mailed to all of ‘Olelo’s existing community producers (over 1,000), along with a postage-paid

envelope for them to use to return their completed questionnaires to the consultant.

All questionnaire responses (by the 157 participants of the focus group sessions and the

262 clients who completed and returned the mailed questionnaires) and focus group

brainstorming comments were compiled for inclusion in a detailed, written report of findings

and recommendations.

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II. MAJOR FINDINGS

• ‘OIelo’s Current Clients — Questionnaire Responses

- Almost unanimously, clients stated that equipment is ‘Always Available” (73%) or“Sometimes Available” (26%) at their primary ‘OIeIo production facility.

- Another very high proportion (92%) described the typical condition of equipmentat their primary ‘Olelo production facility as either “Excellent” or “Good.” Clientswho primarily used the Palolo/Kaimuki and Wai’anae CMC’s gave especially highrankings to the condition of equipment.

- A little less than two-thirds (62%) of the clients said that the quantity of theproduction equipment met their needs. When those who said that this fell shortwere asked what they needed, most often indicated were: (1) camcorders withmore advanced capability; (2) video editing systems with more advancedcapability; (3) more neighborhood facility locations; (4) video editing systems; and(5) portable video editing systems.

- Nearly two-thirds (63%) of clients said that the technical quality of the equipment mettheir needs. When asked what they needed, most often indicated were: (1) ability to“stream” ‘Olelo programs on the internet; (2) video editing systems with moreadvanced capability; (3) better electronic graphics capability; (4) camcorders withmore advanced capability; and (5) improvements to the facility space.

- The ability to present programming live from locations throughout O’ahu waswidely supported by ‘Olelo’s clients: 62% said this was “Veiy Important” andanother 30% said it was “Moderately lmportanL”

- When asked to evaluate five of ‘Olelo’s production-related services, clients werevery positive. Leading the way were “Excellent” or “Good” ratings by 92% of theclients for “Assistance to reserve production equipment needed to produce yourprogram(s)” and by 89% for “Maintenance of the production equipment to keep itin good working condition.” ‘Assistance to help find production crewmembersneeded to produce your program(s)” was the lowest rated service, but it stillgarnered “Excellent” or “Good” ratings by 76% of the clients.

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- Most clients (62%) are “Veiy Satisfied” with the number of programs they hadproduced to show on an “Dielo channel during the last two years. Only 7% saidthey were “Dissatisfied.”

- When asked to evaluate five other services provided by ‘Olelo, most clients againgave them UExcellent~~ or “Good” ratings, led by “Introduction to the ‘OleloCommunity Television production facilities and services” (90%) and “Playback ofprograms on ‘Olelo channels” (77%). Lowest-rated was “Assistance in linkingyour organization with others that are doing similar work,” with 58% saying thisservice was “Excellent” or “Good.”

- When asked to provide open-ended comments about their perception of the“impact” of their programs on the viewing audience, 62% of those who respondedsaid that they had received some form of feedback from viewers, often reportedto be positive and supportive of their efforts.

- About half of the clients said they had taken a production training class at an‘Olelo facility during the last two years. Of this group, nearly all rated the overallquality as either “Excellent” (57%) or “Good” (36%).

- 85% of the clients indicated that the quality, variety and frequency of ‘Olelo’straining courses met their needs. The most common concerns related to theschedule & frequency and the perceWed shortcomings of the curriculum.

- 85% of the clients also said that they had a home computer that is used to accessthe Internet. When asked if they would be interested in taking an ‘Olelo trainingcourse to help learn how to use the Internet (if it was offered), 40% said “Yes”and 30% said “Maybe.”

- Nearly all of the clients said ‘Olelo and its services are “Very Important” (83%) or“Moderately Important” (15%) to the community.

a ‘Olelo’s Current Clients -- Brainstorming Comments

- The most frequently stated reasons why clients said they first got involved inusing ‘Olelo fell into two categories: (1) supportive environment and (2) need forself-expression.

4

- ‘Olelo’s services that were described as most helpful to them also fell into twocategories: (1) staff advice, coordination and assistance and (2) access toresources -- channels/equipment/facility.

- ‘Olelo’s least helpful services were in these categories: (1) facility/equipmentshortcomings; (2) concerns about ‘Olelo staff/board/policies; and(3) inadequate hours of operation.

- Most suggested new services for ‘Olelo to provide were in these categories:(1) training; (2) resources -- channels/equipment/facility; and (3) coordination ofvolunteer activities.

- Suggestions for new or improved equipment were in the categories of specialneeds (e.g., jib, Steadicam, underwater housing); field production (e.g., morecamcorders and multi-camera systems); and computer hardware & software.

• Individuals that had not used ‘Olelo’s Services -- Questionnaire Responses

- 58% knew that community organizations can have programs about their servicesand activities appear on an ‘Olelo channel.

- Only 42% knew that ‘Olelo offers production training classes, and just 15% of thisgroup had taken an ‘Olelo class.

- When asked why they and their organizations had not produced a program to showon an ‘Olelo channel, the most common responses were: (1) we didn’t know that wecould do this; (2) we don’t have the funds or resources to produce high quality TVprograms; and (3) we need someone to produce TV programs for us.

- When asked why they and their organizations had not presented a program thatwas produced elsewhere to show on an ‘Olelo channel, two-thirds (67%) of themsaid “we didn’t know that we could do this.”

- The most common methods that these individuals said are used by theirorganizations to communicate with its members, constituents and the generalpublic are letters, newsletters and other materials via US Mall (79%) and flyersand posters placed on bulletin boards, etc. (60%).

5

- The most common types of information they indicated that their organizationswould like to share with its members, constituents and the general public aregeneral information about their organization (88%); opportunities for people toparticipate in their organization’s activities (81%) and promotional informationabout an upcoming event (65%).

- When asked to indicate would encourage them and their organizations to produceprograms to show on an ‘Olelo channel, 75% said “staff persons to help usproduce programs” and 60% said “staff persons to help us promote the programswhen ready to show on an ‘Olelo channeL”

- 89% of these respondents had previously watched programs on any of the ‘Olelochannels. Of this group, 80% had a positive overall opinion of the programming,and only 4% had a negative opinion.

- 86% of these respondents said they had a home computer connected to theInternet When asked if they would be interested in taking an OTelo trainingcourse to help learn how to use the Internet (if it was offered), 74% said “Yes”and 23% said “Maybe.”

- Nearly all of the clients said ‘Olelo and its services are “Very Important” (83%) or“Moderately Important” (15%) to the community.

- All of the participants who had not previously used ‘Olelo’s services said that it is“Very Important” (79%) or “Important” (21%) to have cable TV channels thatfeature local public, educational and government programming.

- Nearly all of them said ‘Olelo and its services are “Very Important” (82%) or“Moderately Important” (16%) to the community.

- When asked if they would be interested in hiring ‘Olelo (if such a service wasoffered for a fee) to produce a program(s) for their organization to show on an‘Olelo channel, 39% said “Yes” and 52% said “Maybe.” Only 9% said “No.”

6

o Individuals that had not used ‘Olelo’s Services -- Brainstorming Comments

- The primary issues that these participants said are facing their organizations fellheavily into two categories: (1) marketing/promotion/communication (42% of allresponses) and (2) education/training (18% of all responses).

- When asked to address the barriers to effectively communicating with clients,public, and other targeted constituents, their primary concerns related to: (1)marketing/promotion/communication and (2) accessmility/affordability.

- When asked how their organizations could use PEG Access and ‘Olelo toaddress some of their concerns, 70 programming ideas were mentioned.Included among them were:

* client success stories* event coverage* fundraising* graduation ceremonies* immigration issues* job recruitment* poetry slams for youth* preserving Hawaiian culture* PSAs* recruiting volunteers

- Suggestions for items or ways to make it easier to use ‘Olelo were led bystaffing/equipment/facilities issues, followed by similar numbers of commentsrelating to training/education, communication/collaboration/partnerships,marketing/promotion and programming-related assistance.

• Representatives of Government Agencies -- Questionnaire Responses

- 89% knew that local, state and federal government programming is shown on‘cDlelo’s VIEWS Channel 54.

- Only 47% knew that ‘Olelo offers training classes on how to make programs thatcould be shown on Channel 54.

7

- The most common methods that these questionnaire respondents said are usedby their agencies to communicate with its staff, elected officials, residents andvisitors are press releases to a variety of media outlets (89%); web site (89%),letters, newsletters and other materials via US Mall (84%) and flyers and postersplaced on bulletin boards, etc. (74%).

- The most common type of information they indicated that their agencies wouldlike to share with its staff, elected officials, residents and visitors is generalinformation about their agency and its services (74%).

- The ability to present programming live from locations throughout Dahu wasstrongly supported by the government representatives: 61% said this was “VeryImportant” and another 33% said it was “Moderately Important”

- 82% of these respondents had previously watched programs on Channel 54.The programs most often indicated as ones they had watched were City Councilsessions and Neighborhood Board meetings.

- When asked how they find out about programs on Channel 54, the most commonmethod indicated (by 54% of these respondents) was the cable channel 12listings, with the ‘Olelo website a distant second choice. All but one of theserespondents said they did not think that enough on-air promotion was provided tolet them know what is on Channel 54.

- Asked to indicate their overall perception of programming on Channel 54, at leasthalf of these respondents selected appropriate for your interest level (79%),diverse content (64%) and relevant content (50%).

- Less than half (42%) said they would use a computer to watch Channel 54programming on the Internet if it was broadcast this way.

- Channel 54 program topics that these respondents most often indicated as onesthey were “Very Interested” or “Interested” in seeing were:* Local public safety information (94%)* Programs about services and activities of government agencies (89%)* Consumer protection programs (89%)* Programs about issues facing government (88%)

8

When the government representatives were asked, “Do you think VIEWSChannel 54 contributes to the quality of life in O’ahu?” 67% of them said “Yes,”and indicated such ways as freedom of expression; education of the public; andgets the community involved and active.

39% of the government representatives answered “Yes” when asked if ‘Olelo has“improved the community’s knowledge of your agency and its mission.” Whenthey were asked if “the programming on VIEWS Channel 54 enhanced youragency’s mission, either formally or informally,” 35% said “Yes.”

Half of these respondents indicated that a competitive production grant process toencourage the creation of government programming to show on Channel 54 wouldbe a valuable service, while the other half said that they didn’t know.

- The following potential future services from ‘Olelo were Very Important” or“Important” to nearly all of these respondents, as shown below:* Basic video production training (100%)* Airing of agency-created programs (100%)* Coverage of agency-sponsored events (94%)* Having video production equipment available at government locations (94%)* Intermediate video production training (94%)* Advanced video production training (88%)

Representatives of Government Agencies -- Brainstorming Comments

- The primary issues that these participants said are facing governmentdepartments, agencies, boards, and commissions fell into two categories:(1) marketing/education/communication and (2) finances/staffing concerns.

When asked to address the barriers to effectively communicating with the public,clients, and other constituents, their foremost concerns related to:(1) complexity of information to be communicated and (2) geographic, content-based, language, and cultural barriers.

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- When asked how their organizations could use PEG Access and ‘Olelo toaddress some of the identified issues, 33 programming ideas were mentioned.Included among them were:* the art and culture of HawaII by Hawaiian artists* event coverage* Gallery Walk on first Friday — live from the State Art Museum* inte,view agency heads about agency* analysis of board meetings* PSAs* raise public awareness about pedestrian crosswalks* success stories* video versions of existing and future brochures and newsletters

- Suggestions for items or ways to make it easier to use ‘Olelo includedprogramming/production-related assistance and training/education/information.

Representatives of O’ahu Educational Institutions -- Questionnaire Responses

- 83% knew that programs about O’ahu schools can be shown on an ‘Olelo channel.

- 64% knew that ‘Olelo offers training classes on how to make programs that couldbe shown on an ‘Olelo channel.

The most common methods that these questionnaire respondents said are usedby their school to communicate with its staff, students, parents and thecommunity are letters, newsletters and other materials via US Mail (91%); flyersand posters placed on bulletin boards, etc. (85%) and web site (77%).

The most common types of information they indicated that their school would liketo share with its staff, students, parents and the community is general informationabout their school (74%); promotional information about an upcoming schoolevent (87%) and a report about or coverage of an event that was recentlysponsored by their school (85%).

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57% of these respondents had previously watched programs on Channels 55 or 56.The K-12 programs most often indicated as ones they had watched were “TechTalk” (43%), “School Connections” (36%), “KidPhysics” (32%) and “KidsScience”(25%). The most often watched higher education programs were “Math 115” (18%),“Music 106” (18%), “Accounting 201, 202” (14%) and “Science 122” (14%).

- When asked how they find out about programs on Channels 55 or 56, the mostcommon method indicated (by 49% of these respondents) was the cable channel12 listings. “Channel surfing” was written in as a distant second choice. Only afew of these respondents said that enough on-air promotion was provided to letthem know what is on Channels 55 or 56. 74% indicated that more on-airpromotion was needed.

- Asked to indicate their overall perception of programming on Channels 55 or 56,only two choices were selected by more than 30% of these respondents: crediblesource of educational content (71%) and diverse content (68%).

- Two-thirds (66%) said they would use a computer to watch Channels 55 or 56programming on the Internet if it was broadcast this way.

Programming topics that these respondents most often indicated as ones theywere “Very Interested” or “Interested” in seeing on Channels 55 or 56 were:* Programs created by students (98%)

* School-specific programs (98%)

* School events (95%)

* Programs about schools (90%)

* Student work (90%)

* Life-long / non-credit education for adults (89%)

When these representatives of O’ahu educational institutions were asked, “Doyou think educational TV contributes to the quality of life in O’ahu?” 88% of themsaid “Yes,” and indicated such ways as access to those in outlying areas;creating a more aware public; diverse points of view and helps to foster aschool/home partnership.

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Less than half (46%) of these respondents said “Yes” when asked if ‘cDleio has“improved the community’s knowledge of your organization and mission” and if“the programming on educational channels 55 or 56 enhanced your curriculumeither formally or informally” (30%).

A very large majority (80%) of these respondents indicated that a competitiveeducational program production grant process would be a valuable service.

- The following potential future services from ‘Olelo were “Very Important” or“Important” to nearly all of these respondents:* Airing of student-created programs (100%)* Basic video production training for students (98%)* Student internship opportunities (96%)* Basic video production training for teachers (94%)* Advanced video production training for students (94%)* Coverage of school-related events (94%)* Advanced video production training for teachers (92%)* Tours of ‘Olelo’s production facilities (92%)

• Rerresentatives of O’ahu Educational Institutions-- Brainstorming Comments

- The primary issues that these participants said are facing teachers and educationalinstitutions fell into four categories: (1) curriculum/methodology! regulations; (2)technology and media-related issues; (3) teacher/student! community attitudes,interest & participation; and (4) funding/resources/staffing concerns.

When asked to address the barriers to effectively communicating with parents,students, the public, and other constituents, their foremost concern related togeographic, social, language, cultural and attitudinal barriers. Other concernsoften mentioned related to inadequate skills / changing media environment; lackof awareness/interest/time; information overload; and funding, staff, resourcesand support needs.

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- When asked how their schools could use PEG Access and ‘Olelo to address someof the identified issues, 37 programming ideas and 27 other ideas were mentioned.Included among the programming ideas were:* announcement of school events* Board of Education meetThgs* event coverage (sports, arts, graduation, etc.)* how to read standard report card (multiple languages)* multicultural stories and music* parent training* programs about school activities* school plays* student forums* a welcome video to school Th a variety of languages

Included among the other ideas were:* build sense of worth and self esteem for students and school community* excursions/fieldtrips* linkthg media students and NPOs who need help creatThg programs* matching school needs with donors* ~Olelo to go to school to work with students* ongoing information to schools about ‘Olelo service* opportunity for students to network with students from other schools* use media to help and understand specials needs of students

Suggestions for items or ways to make it easier to use ‘tDleIo includedtraThing/education/in formation (including multiple requests for ‘Olelo to offeroutside traththg at schools for students and teachers), equipment-relatedcomments and cable system improvements (including multiple requests for cableto be made available in classrooms and video on demand).

When asked about the types of services they would like to receive from ‘Olelo,most suggested services were in these categories: (1) outreach/promotionlinformation; (2) programmmg/production-related assistance; and (3) trainingrelated assistance.

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Ill. CONCLUSIONS AND RECOMMENDATIONS

Overall, the consultant concludes that ‘Olelo is very highly regarded by its constituents.

The needs assessment participants indicated that ‘Olelo is well-managed and provides

important services for O’ahu residents, community groups, and institutions. High

percentages gave very positive ratings to items like the importance of ‘Olelo’s services to the

community and their overall opinion of the programming that appears on ‘Olelo’s channels.

In addition, impressive majorities of ‘Olelo’s current clients expressed a high level of

satisfaction with the availability and typical condition of ‘Olelo’s production equipment; ‘Olelo’s

training, production-related, and other services; and the number of programs they had

produced for presentation on one of the channels. Clients also reported favorably about the

“impact” of their programs.

A number of the observations, responses to questions, and concerns raised by the

participants during this needs assessment indicated that ‘Olelo should seriously consider

developing the following services and activities in the future:

RECOMMENDATION #1 -- MORE OUTREACH TO CONSTITUENTS

A good deal of evidence was obtained from the needs assessment that supports the

recommendation that more outreach by ‘Olelo is needed. Many potential users are under-

informed with respect to ‘Olelo’s core services like programming and training opportunities. A

concerted effort is needed to get this information to these individuals (and their organizations

and agencies). The best methods to use in such an effort will be a real challenge to ‘Olelo.

The responses by representatives of local nonprofit organizations, government agencies

and educational institutions to our question about the methods that they use to communicate

with their constituents and the greater community reveals a heavy reliance on “old” media.

Very high percentages of them use press releases, letters, newsletters, and flyers and

posters on bulletin boards, while low percentages use mass/bulk email. Therefore, ‘Olelo

should take this into account as it devises methods for an outreach campaign.

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‘Olelo should consider creating targeted brochures to be mailed to O’ahu nonprofit

organizations, government agencies and educational institutions. These brochures should:

(1) help educate these constituents regarding the ‘Olelo’s services; (2) illustrate how ‘Olelo’s

resources can be used by featuring programming ideas that were suggested by participants

of this needs assessment; and (3) relate to the types of communication needs indicated by

the focus group participants in each of these constituent categories. After the brochures

have been mailed, a follow-up effort should be made to contact these entities to see if they

have any questions, would like to schedule an appointment to discuss their options, etc.

Other outreach methods should also be considered, but ‘Olelo must keep in mind that

many of their constituents do not employ more modern techniques at this time.

RECOMMENDATION #2-- MORE PROMOTION OF ‘OLELO PROGRAMMING

Many individuals in ‘Olelo’s pool of potential users don’t know how to find information

about upcoming program playback schedules. With hundreds of channels on modern cable

systems, it is very difficult to cut through the clutter to make yourself known. But there are a

number of methods and opportunities that should not be overlooked:

1. Provide program schedule information for inclusion on Time Warner’s electronic

program guide. Next to “channel surfing,” this is one of the more popular ways that viewers

determine “what’s on” in real time.

2. Encourage the daily, weekly and other newspapers to include ‘cDlelo program

schedules in their TV listings. An ‘Olelo staff member could send weekly news releases that

highlight programs that may be of interest for publication of a sidebar or human interest story.

3. Use breaks between programs on ‘Olelo channels to insert brief promotional videos

about upcoming programs. Strongly encourage program producers to create 30-second

promos about their just-finished programs, and show them as often as possible.

4. Persuade Time Warner to run ‘Olelo promos during times within the schedules of

satellite-delivered services. If Time Warner refuses to run the promos as a public service,

consider budgeting funds to purchase time during appropriate programming services.

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5. Keep the programming schedule information updated on ‘Olelo’s web site, and

display frequent references to the sites URL during breaks on each channel’s programming.

6. Deliver weekly email ‘broadcasts” of news releases and program schedules to

O’ahu newspapers, broadcasters and other outlets. Send these bulk emails to nonprofit

groups, government agencies, libraries, educational institutions and other entities.

RECOMMENDATION #3-- DEVELOP LIVE REMOTE CAPABILITY

Nearly all ‘Olelo clients and representatives of government agencies said that the ability

to present programming live from locations throughout O’ahu was “Vety Important” or

“Moderately Important.” Nearly half of those who had not used ‘Olelo’s services said that this

capability would encourage them to produce programs to show on an ‘Olelo channel.

If Time Warner’s infrastructure can support live origination from remote locations, ‘Olelo

already has the equipment to make this activity not too difficult to accomplish. ‘Olelo’s Sony

) AnyCast system supports many multi-camera field production functions. Early field reportsare very positive for this unit when used in the field for live productions.

A pilot project should be attempted that includes live telecasts from various O’ahu

locations. If successful, adding this option for ‘Olelo’s constituents would be highly desirable.

RECOMMENDATION #4-- TRAINING COURSE(S) ON USE OF THE INTERNET

Very large majorities of ‘Olelo’s clients and those who had not used ‘Olelo’s services said

they were interested in taking an ‘Olelo training course to help learn how to use the Internet.

Therefore, it may be worthwhile for ‘Olelo to offer such training. A side benefit would be the

chance to teach participants how to use Internet features like mass/bulk email, an ability that

would make it much easier for ‘Olelo to reach out to these constituents.

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RECOMMENDATION #5-- COMPETITIVE GRANT PROCESS

Significant percentages of the representatives of government agencies and educational

institutions said that a competitive production grant process to encourage the creation of

government and educational programming to show on ‘Olelo’s channels would be valuable.

Therefore, ‘Olelo should work with representatives of these entities to develop and implement

such a process.

RECOMMENDATION #6--STAFF FOR HIRE TO PRODUCE PROGRAMS

Of the needs assessment participants that had not used ‘Olelo’s services, the most often

mentioned item that would encourage them to produce programs to show on an ‘Olelo

channel was ‘staff persons to help us produce programs.” Significant percentages of them

also expressed an interest in hiring ‘Olelo (if such a service was offered for a fee) to produce

programs for their organization. Given the level of interest in this concept, further investigation

and possible implementation is clearly worth considering.

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SUMMARY ANALYSIS OF ACTIVITIES AND RESEARCH

REGARDING

OLELO COMMUNITY TELEVISION

DRAFT

August 15, 2008

Presented by

THE BUSKE GROUP3001 J STREET, SUITE 201SACRAMENTO, CA 95816

(916) 441-6277

SUMMARY ANALYSIS OF ACTIVITIES AND RESEARCH

REGARDINGOLELO COMMUNITY TELEVISION

INTRODUCTION

‘Olelo Community Television (‘Olelo) is an independent nonprofit organization that has

managed public, educational and government access resources and programming in O’ahu

since 1989. The Buske Group was retained by ‘Olelo to analyze various research efforts that

have been conducted on its behalf, and evaluate the activity reports that it has prepared in

recent years. This report presents our summary analysis of many documents that were

provided by ‘Olelo, including:

• ‘Olelo’s 2008 “Report to the Community”;

• ‘Olelo’s 2007 Year-End Activity Report (and Executive Summary);

• ‘Olelo’s 2006 Year-End Activity Report (and Executive Summary):

• ‘Olelo’s 2005 Year-End Activity Report (and Executive Summary);

• ‘Olelo’s 2004 Year-End Activity Report (and Executive Summary);

• ‘Olelo’s 2004 Year-End Activity Report (and Executive Summary);

• A July 2008 report entitled “Community Forum Comments: June 30 - July 2, 2008”;

• An August 2007 report prepared for ‘Olelo by Ward Research, Inc. entitled “Interestin ‘cDleio Training Facilities -- A Telephone Study among Residents of Waialua,Wahiawa, Waipahu, Waianae, Kahuku, East Honolulu, Kalih4 and Pablo Valley’;

• A November 2006 report prepared for ‘Olelo by Ward Research, Inc. entitled “Trackingl/iewership of and Interest in Community Access Channels: Addition of FOCUS 49”;

• A January 2006 report prepared for ‘Olelo by Ward Research, Inc. entitled “TrackingViewership of and Interest in Community Access Channels: WAVE Vt’;

o A February 2004 report prepared for ‘Olelo by Ward Research, Inc. entitled “Interestin ‘Olelo Training Facilities -- A Telephone Study among Residents of Kailua,Kaneohe, Waialua, Waipahu, Wahiawa, Kalih~ and Pablo Valley’; and

o A February 2006 report prepared for ‘Olelo by The Buske Group entitled “NeedsAssessment for ‘Olelo Community Television”.

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II. SUMMARY ANALYSIS OF ‘OLELO ACTIVITIES

‘Olelo has experienced steady and significant growth in the use of its six community

media centers (CMCs) by the public to create original programming for presentation on six

cable channels of the Oceanic system in O’ahu. ‘Olelo’s resources are used by a wide

variety of O’ahu nonprofit organizations, government agencies and officials, educators,

middle and high school students, seniors, ministers, community activists and residents.

‘Olelo has also established a number of community-building projects, including:

• Youth Xchange, an issues-oriented statewide video competition for K-12 students.This annual competition received over 300 entries in 2007, and awards were givenin 10 categories.

• Capitol Commentary, and open-mic activity at the State Capitol during thelegislative session, giving community residents and legislators an opportunity toshare their views with each other Now in its 10th year, Capitol Commentaryachieved the participation of 83% of the legislators, and yielded 21 programs fortelecast on VIEWS, ‘Olelo’s channel 54. There is also a “Youth CapitolCommentary” component, which involved 50 students in 2007.

• Executive Productions, which addresses the ever-present problem faced by PEGAccess centers throughout the United States -- connecting people who have videoproduction skills with community groups that request coverage of an upcomingevent. ‘Olelo staff links these parties regularly, which resulted in almost 100Executive Production programs in 2007 (127 hours of programming).

• VOTE!, which provides candidates a forum to address issues, including roundtablediscussions with community leaders and debates (during election years).

o O’ahu Speaks, an open mic service for residents to discuss time-sensitivecommunity issues and announce upcoming events.

• Giving Aloha, which provides 30-minute studio discussion programs for nonprofitorganizations to discuss their services and needs, with crew members provided by‘Olelo.

o Island Info, ‘Olelo’s video bulletin board service to display messages from nonprofitgroups about upcoming events and other activities, volunteer opportunities, etc.

• ‘OleloNet, an Internet video on demand service for viewers to watch locallyproduced ‘Olelo programs at anytime, through ‘Olelo’s website.

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Annual data summaries compiled by ‘Olelo regarding its activities in the areas of training,

use of facilities, and the presentation of original programming reveal that many Oahu residents

and organizations are involved in the process of creating community media programs on the

island. On average, over eight hundred individuals complete an ‘Olelo training course each

year. The number of hours that ‘Olelo’s various equipment packages are used each year are

truly impressive. As illustrated in the chart below, in 2007 the studios and mini studios were

used about 4,000 hours; video editing systems were used for almost 40,000 hours; and ‘Olelo’s

three levels of field production systems (camcorders) were in use for nearly 150,000 hours.

As a result of ‘Olelo’s training and production facilitation services, impressive original

programming totals (and annual increases in those totals) have been achieved. In 2007,

‘Olelo achieved its highest total to date for the total amount of first-run public and government

programming: 5,639 hours. This figure represented a 15% increase over the previous year,

and a 44% increase as compared to 2004. This chart page displays ‘Olelo’s annual original

programming totals for the past four years.

‘OLELO ORIGINAL PROGRAMMING TOTALS

2007 ‘OLELO EQUIPMENT USAGE FIGURES

Studios 2,395 hoursMini Studios 1,551 hoursNon-Linear Editing Systems 35,030 hoursLinear Editing Systems 4,321 hoursPD-I 70 Camcorders 124,752 hoursDSR-390 Camcorders 8,985 hoursConsumer Camcorders 14,693 hoursFeather Packs 7,653 hoursEFP Van 345 hours

2007 5,639 hours2006 4,913 hours2005 4,483 hours2004 3,920 hours

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3 III. SUMMARY ANALYSIS OF TELEPHONE SURVEYS

During the past decade, ‘Olelo has commissioned a number of telephone surveys of

O’ahu residents and cable subscribers to help ascertain community interest in ‘Olelo’s

services, and the viewership and perceived value of PEG Access programming. Each of the

surveys were conducted by Ward Research, Incorporated.

Two telephone surveys have been conducted in the past year. The results of these

surveys reveal a number of all-time high percentages of respondents that indicated interest in

and viewership of PEG Access programs:

• The percentage of survey respondents that said they had watched the ‘Olelo PEGAccess channels increased substantially, from about 40% in telephone surveysconducted in 2000, 2004 and 2006 to 61% in 2008.

• When asked to indicate how valuable PEG Access programs are, an average ofabout 80% of the cable subscribers in the 2000, 2004 and 2006 telephone surveyssaid they are very” or “somewhat” valuable. This percentage increased to 88% inthe 2008 telephone survey.

) • In an August 2007 survey, at least three-fourths of the cable viewers from EastHonolulu (75%), Kalihi (77%), Waipahu (77%) and Wahiawa (83%) said that a PEGAccess training facility would be a ‘very” or “somewhat” valuable addition to theircommunity.

• In an August 2007 survey, nearly half of the respondents from Kalihi (48%),Wahiawa (46%) and Waipahu (45%) said that they would be “very” or “somewhat”likely to sign up for training in video production at an ‘Olelo satellite facility if one waslocated in their community.

• In an April 2008 survey, high percentages of the respondents that subscribe to cableindicated that they were “very” or “somewhat’ interested in the following types ofcommunity programming that are offered frequently on the ‘Olelo PEG Accesschannels:o Current issues (76%)o Educational or instructional (70%)o Cultural (68%)o Arts and performance (65%)o Sports (62%)o Election information (61%)

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IV. SUMMARY ANALYSIS OF 2005 NEEDS ASSESSMENT REPORT

In November-December 2005, The Buske Group conducted a needs assessment that

included opportunities for a large number and wide variety of groups and individuals to

provide input regarding their perception of the services and resources offered by ‘Olelo to

O’ahu residents, community groups, and institutions. This needs assessment included 15

focus group and brainstorming sessions with: (1) current ‘Olelo clients; (2) nonprofit groups

and individuals that had not used ‘Olelo’s services; (3) representatives of city, state and

federal government; and (4) private and public school teachers, media instructors, school

principals and superintendents. A total of 157 people attended the focus group sessions.

Following are the major findings of that needs assessment:

• ‘Olelo’s Current Clients

- Almost unanimously, clients stated that equipment is “Always Available” (73%) or“Sometimes Available” (26%) at their primary ‘Olelo production facility.

- Another very high proportion (92%) described the typical condition of equipmentat their primary ‘Olelo production facility as either “Excellent” or “Good.” Clientswho primarily used the Palolo/Kaimuki and Wai’anae CMC’s gave especially highrankings to the condition of equipment.

- A little less than two-thirds (62%) of the clients said that the quantity of theproduction equipment met their needs. When those who said that this fell shortwere asked what they needed, most often indicated were: (1) camcorders withmore advanced capability; (2) video editing systems with more advancedcapability; (3) more neighborhood facility locations; (4) video editing systems; and(5) portable video editing systems.

- Nearly two-thirds (63%) of clients said that the technical quality of the equipment mettheir needs. When asked what they needed, most often indicated were: (1) ability to“stream” ‘Olelo programs on the internet; (2) video editing systems with moreadvanced capability; (3) better electronic graphics capability; (4) camcorders withmore advanced capability; and (5) improvements to the facility space.

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The ability to present programming live from locations throughout O’ahu waswidely supported by ‘Olelo’s clients: 62% said this was “Very Important” andanother 30% said it was “Moderately Important.”

- When asked to evaluate five of ‘Olelo’s production-related services, clients werevery positive. Leading the way were “Excellent” or “Good” ratings by 92% of theclients for “Assistance to reserve production equipment needed to produce yourprogram(s)” and by 89% for “Maintenance of the production equipment to keep itin good working condition.” ‘Assistance to help find production crewmembersneeded to produce your program(s)” was the lowest rated service, but it stillgarnered “Excellent” or “Good” ratings by 76% of the clients.

Most clients (62%) are “Very Satisfied” with the number of programs they hadproduced to show on an ‘Olelo channel during the last two years. Only 7% saidthey were “Dissatisfied.”

When asked to evaluate five other services provided by ‘Olelo, most clients againgave them “Excellent” or “Good” ratings, led by “Introduction to the ‘OleloCommunity Television production facilities and services” (90%) and “Playback ofprograms on ‘Olelo channels” (77%). Lowest-rated was “Assistance in linkingyour organization with others that are doing similar work,” with 58% saying thisservice was “Excellent” or “Good.”

When asked to provide open-ended comments about their perception of the“impact” of their programs on the viewing audience, 62% of those who respondedsaid that they had received some form of feedback from viewers, often reportedto be positive and supportive of their efforts.

About half of the clients said they had taken a production training class at an‘Olelo facility during the last two years. Of this group, nearly all rated the overallquality as either “Excellent” (5 7%) or “Good” (36%).

85% of the clients indicated that the quality, variety and frequency of ‘cDlelo’straining courses met their needs. The most common concerns related to theschedule & frequency and the perceived shortcomings of the curriculum.

Nearly all of the clients said ‘Olelo and its services are “Very Important” (83%) or“Moderately Important” (15%) to the community.

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- The most frequently stated reasons why clients said they first got involved inusing ‘cDlelo fell into two categories: (1) supportive environment and (2) need forself-expression.

- Most suggested new services for ‘Olelo to provide were in these categories:(1) training; (2) resources -- channels/equipment/facility; and (3) coordination ofvolunteer activities.

- Suggestions for new or improved equipment were in the categories of specialneeds (e.g., jib, Steadicam, underwater housing); field production (e.g., morecamcorders and multi-camera systems); and computer hardware & software.

• Individuals that had not used ‘Olelo’s Services

- 58% knew that community organizations can have programs about their servicesand activities appear on an ‘Olelo channel.

- Only 42% knew that ‘Olelo offers production training classes, and just 15% of thisgroup had taken an ‘Olelo class.

- When asked why they and their organizations had not produced a program to showon an ‘Olelo channel, the most common responses were: (1) we didn’t know that wecould do this; (2) we don’t have the funds or resources to produce high quality TVprograms; and (3) we need someone to produce TV programs for us.

- When asked why they and their organizations had not presented a program thatwas produced elsewhere to show on an ‘Olelo channel, two-thirds (67%) of themsaid “we didn’t know that we could do this.”

- The most common types of information they indicated that their organizationswould like to share with its members, constituents and the general public aregeneral information about their organization (88%); opportunities for people toparticipate in their organization’s activities (81%) and promotional informationabout an upcoming event (65%).

- When asked to indicate what would encourage them and their organizations toproduce programs to show on an ‘iDlelo channel, 75% said “staff persons to helpus produce programs” and 60% said “staff persons to help us promote theprograms when ready to show on an ‘Olelo channel”

7

89% of these respondents had previously watched programs on any of the ‘Olelochannels. Of this group, 80% had a positive overall opinion of the programming,and only 4% had a negative opinion.

All of the participants who had not previously used ‘Olelo’s services said that it is“Ve,y Important” (79%) or “Important” (21%) to have cable TV channels thatfeature local public, educational and government programming.

Nearly all of them said ‘Olelo and its services are “Very Important” (82%) or“Moderately Important” (16%) to the community.

- The primary issues that these participants said are facing their organizations fellheavily into two categories: (1) marketing/promotion/communication (42% of allresponses) and (2) education/training (18% of all responses).

When asked to address the barriers to effectively communicating with clients,public, and other targeted constituents, their primary concerns related to: (1)marketing/promotion/communication and (2) accessibility/affordability.

When asked how their organizations could use PEG Access and ‘Olelo toaddress their concerns, 70 programming ideas were mentioned. Included amongthem were:

* client success stories* event coverage* fundraising* graduation ceremonies* immigration issues* job recruitment* poetry slams for youth* preseniing Hawaiian culture* PSAs* recruiting volunteers

Suggestions for items or ways to make it easier to use ‘Olelo were led bystaffing/equipment/facilities issues, followed by similar numbers of commentsrelating to training/education, communication/collaboration/partnerships,marketing/promotion and programming-related assistance.

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o Representatives of Government Agencies

- 89% knew that local, state and federal government programming is shown on‘Olelo’s VIEWS Channel 54.

- Only 47% knew that ‘Olelo offers training classes on how to make programs thatcould be shown on Channel 54.

- The most common type of information they indicated that their agencies wouldlike to share with their staff, elected officials, residents and visitors is generalinformation about their agency and its services (74%).

- The ability to present programming from locations throughout O’ahu wasstrongly supported by the government representatives: 61% said this was “VeryImportant” and another 33% said it was “Moderately Important”

- 82% of these respondents had previously watched programs on Channel 54.The programs most often indicated as ones they had watched were City Councilsessions and Neighborhood Board meetings.

- When asked how they find out about programs on Channel 54, the most commonmethod indicated (by 54% of these respondents) was the cable channel 12listings, with the ‘Olelo website a distant second choice. All but one of theserespondents said they did not think that enough on-air promotion was provided tolet them know what is on Channel 54.

- Asked to indicate their overall perception of programming on Channel 54, at leasthalf of these respondents selected appropriate for your interest level (79%),diverse content (64%) and relevant content (50%).

- Channel 54 program topics that these respondents most often indicated as onesthey were “Very Interested” or “Interested” in seeing were:* Local public safety information (94%)* Programs about services and activities of government agencies (89%)* Consumer protection programs (89%)* Programs about issues facing government (88%)

- When the government representatives were asked, “Do you think VIEWSChannel 54 contributes to the quality of life in O’ahu?” 67% of them said “Yes,”and indicated such ways as freedom of expression; education of the public; andgets the community involved and active.

9

39% of the government representatives answered “Yes” when asked if ‘Olelo has“improved the community’s knowledge of your agency and its mission.” Whenthey were asked if “the programming on VIEWS Channel 54 enhanced youragency’s mission, either formally or informally,” 35% said “Yes.”

The following potential future services from ‘OIelo were “Very Important” or“Important” to nearly all of these respondents:* Basic video production training (100%)* Airing of agency-created programs (100%)* Coverage of agency-sponsored events (94%)* Having video production equipment available at government locations (94%)* Intermediate video production training (94%)* Advanced video production training (88%)

- The primary issues that these participants said are facing governmentdepartments, agencies, boards, and commissions fell into two categories:(1) marketing/education/communication and (2) finances/staffing concerns.

- When asked to address the barriers to effectively communicating with the public,clients, and other constituents, their foremost concerns related to:

) (1) complexity of information to be communicated and (2) geographic, content-based, language, and cultural barriers.

When asked how their organizations could use PEG Access and ‘Olelo toaddress their concerns, 33 programming ideas were mentioned. Included amongthem were:* the art and culture of HawaII by HawaIIan artists* event coverage* Galleiy Walk on first Friday — live from the State Art Museum* inteniiew agency heads about agency* analysis of board meetings* PSAs* success stories* video versions of existing and future brochures and newsletters

Suggestions for items or ways to make it easier to use ‘Olelo includedprogramming/production-related assistance and traThing/education/in formation.

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• Representatives of O’ahu Educational Institutions

83% knew that programs about O’ahu schools can be shown on an ‘Olelo channel.

64% knew that ‘Olelo offers training classes on how to make programs that couldbe shown on an ‘Olelo channel.

- The most common types of information they indicated thattheir schools wouldlike to share with their staff, students, parents and the community is generalinformation about their school (74%); promotional information about an upcomingschool event (8 7%) and a report about or coverage of an event that was recentlysponsored by their school (85%).

57% of these respondents had previously watched programs on Channels 55 or 56.The K-12 programs most often indicated as ones they had watched were “TechTalk” (43%), “School Connections” (36%), “KidPhysics” (32%) and “kidsScience”(25%). The most often watched higher education programs were “Math 115” (18%),“Music 106” (18%), “Accounting 201, 202” (14%) and “Science 122” (14%).

- When asked how they find out about programs on Channels 55 or 56, the mostcommon method indicated (by 49% of these respondents) was the cable channel12 listings. “Channel suffing” was written in as a distant second choice. Only afew of these respondents said that enough on-air promotion was provided to letthem know what is on Channels 55 or 56. 74% indicated that more on-airpromotion was needed.

- Asked to indicate their overall perception of programming on Channels 55 or 56,only two choices were selected by more than 30% of these respondents: crediblesource of educational content (71%) and diverse content (68%).

Programming topics that these respondents most often indicated as ones theywere “Very Interested” or “Interested” in seeing on Channels 55 or 56 were:* Programs created by students (98%)* School-specific programs (98%)* School events (95%)* Programs about schools (90%)* Student work (90%)* Life-long I non-credit education for adults (89%)

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- When these representatives of O’ahu educational institutions were asked, “Doyou think educational TV contributes to the quality of life in O’ahu?” 88% of themsaid “Yes/’ and indicated such ways as access to those in outlying areas;creating a more aware public; diverse points of view and helps to foster aschool/home partnership.

Less than half (46%) of these respondents said “Yes” when asked if ‘Olelo has“improved the community’s knowledge of your organization and mission” and if“the programming on educational channels 55 or 56 enhanced your curriculumeither formally or informally” (30%).

The following potential future services from ‘Olelo were “Very Important” or“Important” to nearly all of these respondents:* Airing of student-created programs (100%)* Basic video production training for students (98%)* Student internship opportunities (96%)* Basic video production training for teachers (94%)* Advanced video production traThing for students (94%)* Coverage of school-related events (94%)* Advanced video production traThing for teachers (92%)* Tours of ‘Olelo ‘s production facilities (92%)

- When asked to address the barriers to effectively communicating with parents,students, the public, and other constituents, their foremost concern related togeographic, social, language, cultural and attitudThal barriers. Other concernsoften mentioned related to inadequate skills / changing media environment; lackof awareness/interest/time; information overload; and funding, staff resourcesand support needs.

When asked how their schools could use PEG Access and ‘Olelo to address theirconcerns, 37 ideas were mentioned. Included among them were:* announcement of school events* Board of Education meetThgs* event coverage (sports, arts, graduation, etc.)* how to read standard report card (multiple languages)* multicultural stories and music* parent training

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* programs about school activities* school plays* student forums* a welcome to school video in a variety of languages* build sense of worth and self esteem for students and school community* excursions/fieldtrips* linking media students and NPOs who need help creating programs* matching school needs with donors* ‘Olelo to go to school to work with students* ongoing information to schools about ‘Olelo service* opportunity for students to network with students from other schools* use media to help and understand specials needs of students

- Suggestions for items or ways to make it easier to use Olelo includedtraining/education/information (including multiple requests for ‘Olelo to offeroutside training at schools for students and teachers), equipment-relatedcomments and cable system improvements (including multiple requests for cableto be made available in classrooms and video on demand).

When asked about the types of services they would like to receive from ‘Olelo,the most suggested services were in these categories: (1) outreach/promotion!information; (2) programming/production-related assistance; and (3) trainingrelated assistance.

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V. SUMMARY ANALYSIS OF 2008 COMMUNITY FORUMS

On June 30 - July 2, 2008, ‘Olelo hosted a series of community forums with members of

the public, educators and policymakers. Participants suggested many PEG-related

community benefits to be included in the new franchise, which can be grouped into four basic

categories:

1. Channel Capacity/Spectrum for PEG Access

• PEG channels should be located with local broadcast channels in the lowesttier. Channel numbers for all local channels should be between 2 and 20, ifpossible.

• More bandwidth should be dedicated to PEG access to ensure that they canuse current and future technology.

• State-wide channels or channels for State government programs and otherprograms shared from all PEG access centers in the State, like youthprogramming, etc.

• Video on demand should be available at no cost for PEG programs.

j • Increase the number of channels dedicated to PEG programming.• Equal presentation on digital and analog guide.

2. Technical Improvements

• Increase the ability to go live from multiple points around the island, especiallyfrom community media centers and other key locations where the communitygathers.

• Provide the ability for state-wide video teleconferencing and for live interactivetestimony during government meetings. Ability to video conference from Hawaiito other video conferencing centers that could also be used for family membersto talk to members in service or prisons on mainland. Community media centerscould serve as local hubs for this process.

• Provide free Internet access at every community media center, with enoughstorage and bandwidth to support multiple services.

• Ensure that PEGs are provided with HDTV equipment and the capability totransmit HD programming.

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• Expand the I-Net for use as a distance education tool for prisons.

• Provide the capability to embed info/data into access programs so that newtechnologies can be supported (like remote voting).

• Provide the technical resources for closed captioning of programs in variouslanguages.

• Promote inter-Island cooperation and provide connections that allow PEGprograms to be exchanged over a state-wide fiber network.

• Transmission of programs via the most current technology regardless ofprogram origin.

• Ability for producers to upload programs from home.

• Satellite transmission.

3. Facilities and Equipment Support

• Provide resources to obtain and/or renovate facilities in each community thatare large enough to handle increasing community use and are expanded andupdated throughout the term of the franchise.

• Provide resources to support Internet archiving of all PEG programs on a long-term basis.

• Ensure that enough equipment is available to fulfill needs in each community.

• Ensure that PEG equipment keeps pace with changes in technology.

• Fund the replacement of aging equipment throughout term of the franchise.

o Provide remote production vans for each community media center.

• Provide a satellite van for mobile live shoots.

o Support a mobile studio.

o Video teleconferencing.

o Equip a music recording studio to create music for programs.

o Underwater equipment.

• Server-based editing (large server capacity).

o Equip a mobile learning center/media access lab.

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4. PEG Services Support

• Provide support for local media centers located in every O’ahu school complex.

• Increase funding for services such as Summer Media Programs and YouthXChange.

• PEG to provide job training opportunities for youth.

• More support for community outreach and capacity building efforts.

• More copyright-cleared music and B-roll footage at no cost for communityproducers.

• Community radio station.

• Assistive technology and trained staff to help those with disabilities.

• Connect and share resources between existing PEG providers and UH.

• Collaboration with nonprofit organizations to document and share resources.

• Provide resources for virtual and live forums.

• Provide resources to support English as a Second Language programs andservices at all PEG facilities.

• Support programs that assist small businesses.

• Provide more services and tools that are targeted toward senior citizens.

• Expand community training to include video production, media literacy, culture,etc.

• More support for multiple language programs including on-screen translations(open captioning).

• Provide grant funds for community producers that are administered by the PEGprovider.

• Provide resources so that the PEG provider can more fully function as part ofthe Emergency Broadcast Network.

• Expand mentoring program.

• Provide free advertising/promotions for PEG services and programming.

o Specific listings in channel guides.

o Expanded training staff for a low student/teacher ratio.

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VI. CONCLUSIONS

Feedback from the telephone survey respondents and the needs assessment and

community forums participants indicates that ‘Olelo is highly-regarded, well-managed and

provides important services for O’ahu residents, community groups, and institutions.

Impressive majorities of ‘Olelo’s clients have a high level of satisfaction with the availability

and typical condition of ‘Olelo’s production equipment; ‘Olelo’s training, production-related,

and other se,’vices; and the number of programs they had produced for presentation on one

of the channels. Clients also reported favorably about the “impact” of their programs.

A number of the observations, responses to questions, and concerns raised by needs

assessment participants and telephone survey respondents indicate that ‘Olelo requires

additional resources to enable it to develop the following services and activities in the future:

RECOMMENDATION #1--MORE OUTREACH TO CONSTITUENTS

Many potential users are under-informed with respect to ‘cDlelo’s core services like

programming and training opportunities. A concerted effort is needed to get this information

to these individuals (and their organizations and agencies). The best methods to use in such

an effort will be a real challenge to ‘Olelo.

Representatives of local nonprofit organizations, government agencies and educational

institutions indicated a heavy reliance on “old” media to communicate with their constituents

and the greater community. Very high percentages of them use press releases, letters,

newsletters, and flyers and posters on bulletin boards, while low percentages use mass/bulk

email. ‘Olelo should take this into account as it devises methods for an outreach campaign.

RECOMMENDATION #2-- MORE PROMOTION OF ‘OLELO PROGRAMMING

Many individuals in ‘Olelo’s pool of potential users don’t know how to find information

about upcoming program playback schedules. With hundreds of channels on modern cable

systems, it is very difficult to cut through the clutter to make yourself known. But there are a

number of methods and opportunities that should not be overlooked:

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1. Provide program schedule information for inclusion on all of the Oceanic electronicprogram guides (analog and digital versions). Next to “channel surfing,” this is one of themore popular ways that viewers determine “what’s on” in real time. Therefore, guaranteedaccess for ‘Olelo channels to the Oceanic electronic program guides should be an importantgoal of the franchise renewal process.

2. Encourage the daily, weekly and other newspapers to include ‘Olelo programschedules in their TV listings. Additional funding may be required to ensure that an ‘Olelostaff member could be assigned the task of preparing and sending weekly news releases thathighlight programs that may be of interest for publication of a sidebar or human interest story.

3. Use breaks between programs on ‘Olelo channels to insert brief promotional videosabout upcoming programs. Strongly encourage program producers to create 30-secondpromos about their just-finished programs, and show them as often as possible.

4. Oceanic should be required to run promotional spots about ‘Olelo’s programmingand services during local available times within the schedules of satellite-delivered channels.

5. Oceanic should also be required to provide free periodic (e.g., quarterly) inclusionof promotional and informational items about ‘Olelo’s programming and services in cablesubscriber bills.

6. Keep the programming schedule information updated on ‘Olelo’s web site, anddisplay frequent references to the site’s URL during breaks on each channel’s programming.

7. Deliver weekly email “broadcasts” of news releases and program schedules toO’ahu newspapers, broadcasters and other outlets. Send these bulk emails to nonprofitgroups, government agencies, libraries, educational institutions and other entities.

RECOMMENDATION #3-- DEVELOP LIVE REMOTE CAPABILITY

Nearly all ‘Olelo clients and representatives of government agencies said that the ability

to present programming live from locations throughout O’ahu was “Very’ Important” or

“Moderately’Important.”

A pilot project should be set up to include live telecasts from various O’ahu locations. Live

remote programming capability would be highly desirable goal of the franchise renewal process.

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RECOMMENDATION #4-- STAFF FOR HIRE TO PRODUCE PROGRAMS

Of the needs assessment participants that had not used ‘Olelo’s services, the most often

mentioned item that would encourage them to produce programs to show on an ‘Olelo

channel was “staff persons to help us produce programs.” Significant percentages of them

also expressed an interest in hiring ‘Olelo (if such a service was offered for a fee) to produce

programs for their organization. Given the level of interest in this concept, it deserves serious

consideration and if implemented, additional funding may be required to initiate such a

service.

RECOMMENDATION #5-- ADDITIONAL VIDEO PRODUCTION TRAINING FACILITIES

In an August 2007 survey, at least three-fourths of the cable viewers from East

Honolulu, Kalihi, Waipahu and Wahiawa said that a PEG Access training facility would be a

“very” or “somewhat” valuable addition to their community. Additional funding to construct,

equip and operate such training facilities should also be an important goal of the franchise

renewal process.

RECOMMENDATION #6-- ENHANCED CHANNEL/BANDWIDTH CAPACITY

Participants in the 2008 community forums identified the need for additional

channel/bandwidth capacity and capability. Accordingly, these items should be goals of the

franchise renewal process:

1. As the creation of PEG programming increases and the demand for time slots onthe existing PEG channels reaches defined benchmarks, additional PEG channel/bandwidthspace should be provided.

2. Additional PEG channel/bandwidth space on each of the islands should beprovided to carry programming that originates from the CAOs that serve Hawaii. This wouldrequire an interconnection of the cable systems serving each of the islands, which would alsopermit the simultaneous delivery of State government programs to all residents of Hawaii.

3. Oceanic’s “video on demand” service should include VOD server space for the freeencoding of PEG programs by ‘Olelo for subscribers to view at no cost.

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RECOMMENDATION #7-- OTHER TECHNICAL ENHANCEMENT GOALS

Participants in the 2008 community forums also identified the need for these technical

enhancements to the cable system infrastructure and ‘Olelo’s facilities:

1. State-wide video conferencing capability, which could (for example) permit liveinteractive testimony from all of the islands during State government meetings.

2. Free internet access at each community media center managed by ‘Olelo.

3. Equipment to permit closed or open captioning of PEG programming.

4. At a defined time (i.e., when a specified percentage of Oceanic’s channels are alsodelivered in high definition), the community media centers operated by ‘Olelo should beequipped with HD production and transmission systems, and Oceanic should deliver thosechannels to its subscribers in HD at the same level of quality as its other HD channels.

5. Aging equipment at each community media center managed by ‘Olelo should bereplaced and upgraded periodically to keep pace with technological changes.

6. A long-term Internet-based archive of all PEG programs should be established,regularly updated and maintained.

-~ ) 7. At least one multiple-camera mobile production unit should be provided at eachcommunity media center managed by ‘Olelo.

RECOMMENDATION #8-- SUPPORT FOR ADDITIONAL PEG-RELATED SERVICES

Finally, participants in the 2008 community forums identified the need for additional

support of these PEG-related services:

1. More funding for ‘Olelo’s Summer Media Programs and Youth XChange.

2. Youth job training opportunities at the community media centers managed by ‘Olelo.

3. Copyrighted music and stock B-roll footage at no cost to community producers.

4. Resources to support English as a Second Language programs and services at allPEG facilities.

5. More services and tools targeted toward senior citizens or those with disabilities.

6. Expansion of ‘Olelo’s mentoring program.

7. More ‘Olelo training staff to help achieve a lower student/teacher ratio.

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