SPECIAL AGREEMENT

    Lance Paul Larsen, a Hawaiian subject, and the Government of the Hawaiian Kingdom, by its Acting Council of Regency, hereinafter the "Parties";

    Stress their desire to settle the dispute between the Parties which arose out of the unlawful incarceration of the Claimant, Mr. Lance Paul Larsen, by a government not his own; and

    Remain firm to re-establish a trustful and lasting relationship between a National and his Government while both parties are provisionally under the international laws of occupation by another Nation State in time of peace; and

    Endeavor to fairly resolve this dispute according to a coherent body of legal rules in a manner fitting the principles of international law and the basic fundamental right of every person to life, liberty, and of pursuing and obtaining safety and happiness;

    Have entered into a special agreement, which supercedes, to the extent inconsistent with, the Notice of Arbitration of November 8, 1999 and the Arbitration Agreement of October 30, 1999, as follows:

ARTICLE I
THE ARBITRAL TRIBUNAL

1. The Arbitral Tribunal shall sit at The Hague, Netherlands.
   
   
2. The Arbitral Tribunal shall consist of one (1) arbitrator to be chosen by Mr. Keoni Agard, Esquire, who shall select the same using the following list-procedure:
   
   
   1. The appointing authority shall communicate to both Parties an identical list containing the names of prospective arbitrators and their qualifications;
      
      
   2. Within fifteen days after the receipt of this list, each Party may return the list to the appointing authority after having deleted the name or names to which he objects and numbered the remaining names on the list in the order of preference;
      
      
   3. After the expiration of the above period of time the appointing authority shall appoint the sole arbitrator from among the names approved on the lists returned to it and in accordance with the order of preference indicated by the Parties;
      
      
   4. If for any reason the appointment cannot be made according to this procedure, the appointing authority may exercise its discretion in appointing the arbitrator.
      
      
3. The Arbitral Tribunal may consult any experts of its choice after notice to the Parties. Such experts shall perform their functions impartially and conscientiously.
   
   
4. The International Bureau of the Permanent Court of Arbitration at The Hague shall act as a channel of communications between the Parties and the Arbitral Tribunal, and provide secretariat including, inter alia, arranging for hearing rooms and stenographic or electronic records of hearings.

ARTICLE II
ISSUE BEFORE THE ARBITRAL TRIBUNAL

    The Arbitral Tribunal is asked to determine, on the basis of the Hague Conventions IV and V of 18 October 1907, and the rules and principles of international law, whether the rights of the Claimant under international law as a Hawaiian subject are being violated, and if so, does he have any redress against the Respondent Government of the Hawaiian Kingdom?

ARTICLE III
ARBITRAL PROCEEDINGS

1. The Parties to the proceedings shall co-operate with the Arbitral Tribunal in good faith.
   
   
2. The language of the proceedings shall be English.
   
   
3. The proceedings shall consist of a written phase and an oral phase.
   
   
4. The written phase shall include:
   
   
   1. Memorials submitted by the Parties to the Arbitral Tribunal not later than 45 days after the notification of the Special Agreement is transmitted to the International Bureau of the Permanent Court of Arbitration in accordance with section 2 of Article V of this Special Agreement;
      
      
   2. Counter-Memorials submitted by each Party to the Arbitral Tribunal not later than 45 days after the date of submission of the Memorials;
      
      
   3. such other written pleadings as may be approved by the Arbitral Tribunal at the request of either of the Parties, or as may be directed by the Arbitral Tribunal.
      
      
5. An oral phase shall follow the written phase.
   
   
   1. The oral proceedings shall be held at the facilities of the Permanent Court of Arbitration at The Hague, the Netherlands, on the dates determined by the Arbitral Tribunal after consultation with the Agents representing the Parties. The oral phase shall start in so far as possible not later than one month after the submission of the last written statement of the Parties under Article III, section 4 above.
      
      
   2. The Parties before the Arbitral Tribunal shall be represented in the oral phase of the proceedings by its Agents or, as appropriate, by its Deputy-Agents, and by such counsel, advisers and experts as it may designate.
      
      
   3. The oral proceedings shall be open to the Public.

ARTICLE IV
ARBITRATION RULES

    The rules applicable to the matter shall be the UNCITRAL Rules of arbitration unless otherwise determined by the terms of this Special Agreement.

ARTICLE V
EXECUTION OF AGREEMENT

1. This agreement shall enter into force on the date of the signatures of the two Parties.
   
   
2. This Special Agreement shall be notified to the International Bureau of the Permanent Court of Arbitration in accordance with paragraph 6 of the Notice of Arbitration dated November 8, 1999, by joint letter of the Parties.

ARTICLE VI
AWARD OF THE ARBITRAL TRIBUNAL

1. The Award of the Arbitral Tribunal as to the questions described in Article II shall be final and binding on the Parties and shall be made public.

    In witness whereof, the undersigned, being duly authorized thereto, have signed this Agreement.

    Done at Honolulu, this 25th day of January, 2000.

[signed] Ninia Parks, Esquire
Attorney for Lance P. Larsen,
Claimant


[signed] David Keanu Sai
Agent for the Hawaiian Kingdom,
Respondent