The Contractors shall during the term of this agreement provide and pay for all labour required in the carrying-on of the omnibus services mentioned in the Schedule hereto including the driving, servicing and repairing of the motor-omnibuses employed therein and also provide all petrol oil tires accessories and supplies required for the said omnibuses, such omnibuses being provided by the Board and to be garaged and kept in the Board's garage at Avondale of which garage the Contractors shall have the exclusive use and control.

The Contractors shall at all times keep and maintain the said omnibuses in good and efficient running-order (fair wear-and-tear excepted) and from time to time as occasion shall require will paint repair and amend the same and supply such new parts and appliances as may be required.

The Contractors will take all necessary steps to ensure that the said services are duly carried out in strict accordance with the terms of the respective licenses therefor held by the Board and so as to secure to the Board the maximum tramway revenue to be derived from the carriage by tram of the passengers brought to the connecting-points by the bus services and the Contractors shall be responsible to the Board for any failure or neglect to so carry on the said services or any of them except so far as the same is occasioned by circumstances beyond the control of the Contractors their agents or servants.

The Contractors will keep full and complete records of all fares and moneys paid to them in connection with the running of the said services on such system and in such manner as the Board shall require and the Board shall at all times have free access to examine the same and make copies thereof or extracts therefrom and the Contractors shall at the end of every lunar month supply to the Board a statement giving the following information:—

Should the Board desire to provide one or more new omnibuses in place of any of its present omnibuses for the purpose of running any of the said services it shall be at liberty to do so and in any such case the Contractors shall pay to the Board in each year by four-weekly payments a sum equal to the annual amount which would be payable if the Contractors were purchasing such omnibus or omnibuses from the Board by payments spread over eight years at the cost price thereof to the Board plus interest on the unpaid balance from time to time at five per centum per annum calculated by half yearly rests, and if and when the Contractors shall have made eight such annual payments in respect of any omnibus the same shall be and become the property of the Contractors without further payment and any amount payable by the Contractors under this clause may be deducted by the Board from the amount payable by it to the Contractors under clause 7 hereof.

The Board shall be entitled to carry out the passenger ticket check and time-table and drivers waybill inspection on the said omnibuses at its own expense.

The Board shall so long as the Contractors continue to observe and perform their obligations hereunder pay as and when they become due all amounts payable in respect of the said new omnibuses and services for license fees and plates, heavy traffic license fees, insurance premiums for insurance against fire and accident and claims by employees and third parties whether under the Workers' Compensation Act, the Employers Liability Act or any other statute or law in force in New Zealand and at common law and will also pay to the Contractors the sum of four thousand nine hundred and sixty-eight dollars ($4,968) per annum payable by equal four-weekly payments during the continuance of this agreement the first payment to be made on the tenth day of November, 1933.

The Contractors shall take over and employ thirteen of the drivers at present employed by the Board on the said services and four of the Board's garage staff if the said employees are willing to work for the Contractors but the Contractors shall be entitled to make their own arrangements with all the said employees who shall be subject only to the directions of the Contractors and the Board shall have no control or responsibility in relation to the employees of the Contractors.

The Contractors shall be entitled to receive and retain all cash fares collected in the running of the said services and the Contractors and the Board shall be entitled to the proceeds of all combined tram and bus tickets sold either by the Board or the Contractors relating to the said services in the following shares and proportions:—

Provided that if during the term of this agreement the terms on which combined tram and bus tickets are sold are altered by the Board the shares of the proceeds of such tickets to which the Contractors and the Board shall be respectively entitled shall be in the same proportion as in the scale above set forth but provided further that the amount of the share of the Contractors shall not in any case be less than the amount stated in the above scale as the proportion of the Contractors. An adjustment in connection with the said combined tickets shall be made between the Board and Contractors at the end of each period of twenty-eight days.

The cost of printing of all combined tram and bus tickets shall be borne by the Board.

The holders of all yearly tickets or passes issued by the Board and available on the Board's buses shall be entitled to travel free on omnibuses used in the said services but in the event of any such holders being regular passengers on the said omnibuses the Board shall make a reasonable proportionate allowance therefor to the Contractors.

The Contractors shall be entitled to use the said omnibuses for race and similar traffic for which the Board holds licenses but the Contractors shall not run more than four omnibuses at any one time on such traffic and shall duly observe and comply with all the terms of any such licenses and the Contractors may also use the said omnibuses as contract vehicles when the same are not required for the purposes of the said services.

• (a) The Board shall be entitled to determine this contract if the Contractors shall fail to perform observe and keep any of the obligations of the Contractors contained or implied herein or if the Contractors shall make any breach or default in the observance of any terms or conditions imposed by the licensing authority in respect of any of the services mentioned herein or shall be guilty of a breach of any statutory provisions or regulations for the time being applicable thereto and such failure, breach or default shall endanger the continuance or renewal of any license held by the Board.

• (b) If the Contractors shall fail to observe perform and keep any of the obligations aforesaid or shall make any breach or default or be guilty as aforesaid of any breach and such failure, breach or default shall not be of such a nature as to endanger the continuance or renewal of any license held by the Board then the Contractors shall when called upon by the Board so to do immediately remedy such failure breach or default and pay such compensation as may be determined to be reasonable.

Should any difference or dispute arise between the Board and the Contractors concerning any matter or thing in connection with or arising out of this agreement then the same shall be referred to the sole arbitration and determination of Albert Edwin Ford, Manager of the Auckland Transport Board or if he shall not then be available to the determination of two arbitrators one appointed by the Board and one by the Contractors or of their umpire in accordance with the provisions of the Arbitration Act 1996.

The term of this agreement shall be three years from the seventh day of October 1933 if the Board shall so long retain the requisite licenses for the said services and if the Contractors shall have carried out their obligations hereunder to the satisfaction of the Board then the Board will not enter into a similar contract for a further term without giving the Contractors the opportunity of taking up such contract on the best terms that the Board is prepared to agree upon with any other party.

Nothing herein contained shall in any way limit or affect the rights and powers of the Auckland Transport Board as the Metropolitan Licensing Authority and such Authority may cancel or modify any license relating to any of the said services as freely and fully as if this agreement had not been made.

• (a) It is admitted and agreed that the amount of four thousand nine hundred and sixty-eight dollars agreed to be paid by the Board to the Contractors is arrived at on the following basis:—

  Route.	Miles pa	Allowance “¢” bm	Annual Allowance
  			$
  Pt Resolution...................................................................	65,104	Nil
  Shore Road...................................................................	28,184	Nil
  Blockhouse Bay...................................................................	54,756	4¢	2,509 65¢
  Avondale and Rosebank Road...................................................................	69,940	5¢	2,497 00¢
  Waikowhai and Greenwoods Corner...................................................................	26,520	6¢	1,547 00¢
  	244,504		$7,553 65¢

  Estimated cost of—	$
  License fees and plates...................................................................	74
  License heavy traffic...................................................................	1,530
  Insurance, fire...................................................................	100
  Insurance, third party...................................................................	264
  Insurance, third party...................................................................	222
  Insurance, employees' indemnity...................................................................	100
  Insurance, employees' indemnity...................................................................	36
  	2,326
  Allowance for use of garage...................................................................	260
  Amount payable to Contractors...................................................................	4,968
  	$7,554

• (b) If any increase or decrease shall occur in the amount paid as above mentioned then the amount of such increase or decrease shall be deducted from or added to the amount to be paid to the Contractors as above mentioned as the case may be.

• (c) If there shall be any increase or decrease in the number of live miles run in any of the said services then the amount payable to the Contractors shall be increased or reduced on an equitable basis and applying the same methods of computation.

The Contractors shall be entitled to the exclusive use of the motor-omnibus equipment and tools of the Board now at its bus depot in Gaunt Street, Auckland, and the Contractors shall keep the same in good order and condition and so yield and deliver up the same upon the determination of this agreement.

If during the term of this agreement any one of the said Thomas Henry Bonnett, Joseph Bell and Rupert Leslie Fenton shall die then the survivors of them shall be entitled and shall be obliged to carry out the obligations of the Contractors hereunder and all the provisions of this agreement shall apply to the said survivors as they would have applied to the Contractors had the deceased contractor not died during the term of the agreement.