Within six calendar months previous to the expiration of the term hereby created (if such term shall not have been previously determined by forfeiture or otherwise), two separate valuations shall be made by two indifferent persons to be appointed in writing as follows: one by the lessor, and the other by the lessee; one of such valuations to be made of all the buildings and improvements then on the said lands hereby leased; and the other of the fair annual ground-rent of the said lands only, without any buildings or improvements, for a further term of [the same term as in the original lease] years from the expiration of the term hereby granted (such rent to be an even annual sum payable throughout the term, without increasing or decreasing during the said term). Such valuers shall, before entering upon the valuations, together appoint in writing under their respective hands a third valuer, who shall be an umpire as between them. The decision of such two first-appointed valuers if they agree, or in such respects as they agree, or of such third valuer or umpire if they do not agree, or in such respects as they do not agree, shall be binding on all parties. The duty of such third valuer or umpire, on reference to him of any question under these presents, shall be to analyse the respective valuations of the two first-appointed valuers in the matters in which their valuations shall not agree, and then to make an independent and substantive valuation; which last-mentioned valuation shall be the “decision” of the third valuer or umpire: Provided always that, in making such decision on any question referred to him, the said third valuer or umpire shall in every case be bound to make a valuation not exceeding the higher, or less than the lower, of the valuations made by the other valuers respectively.

The lessor may, if he thinks fit, pay to the lessee the amount of such valuation of the buildings and improvements, in which case such buildings and improvements shall, upon such payment, become the exclusive property of the lessor upon the expiration of the time hereby granted.

But if the lessor shall not, before the expiration of the term hereby granted, pay to the lessee the amount of such valuation, then and in such case, before the expiration of the term hereby granted, a lease of the said land and premises for a further term of [the same term as in the original lease] years, containing the same covenants and provisions as are contained in these presents (including this present provision, and all clauses auxiliary or in relation thereto), shall be put up by the lessor to public auction, at the upset annual rent of the said land as valued without buildings and improvements, subject to the payment by the purchaser at such auction of the value of the said buildings and improvements fixed by the valuers or their umpire, as aforesaid. And in the event of any person or persons other than the lessee becoming the purchaser at such auction of the said lease for the said further term of [twenty-one] years, such person or persons shall forthwith pay in cash to the lessor for the benefit of the lessee the amount of the value of the buildings and improvements so fixed as aforesaid, and shall enter into a lease of the said premises for the said further term at the annual ground-rent at which the said premises shall have been so sold at such auction. And the lessor (all rent and outgoings having been previously paid) shall pay over to the lessee the amount of the value of the said buildings and improvements paid to the lessor by the purchaser, without any deduction whatsoever: Provided always, and it is hereby expressly declared, that nothing in these presents contained shall be deemed to render the lessor liable to pay to the lessee all or any part of the value of any buildings or improvements upon any valuation made under the foregoing provisions, save after having received the amount thereof for his or their benefit as aforesaid.

If the lessor on the one side, and the lessee on the other side, shall not appoint a valuer in writing, and also serve on the other side a notice in writing of such appointment having been made within twenty-one days after being served by the other side with a notice in writing of the appointment of a valuer by such other side, then the valuer appointed by the side giving such notice shall make the said two valuations of buildings, improvements, and annual ground-rent alone, and such valuations shall be final and conclusive on all parties, and a similar final valuation shall be made by either of the valuers in case the other valuer shall refuse or neglect to act.

Any such notice as aforesaid may be served upon the lessor by being left at the office of the secretary, clerk, or other like officer thereof, and may be served upon the lessee, by being given to him or them, or any of them, or left at his or their or any of their usual or last known place of abode or business within the provincial district where the land demised is situated, or sent addressed to him or them, or any of them, at such place as aforesaid through the post, or left at or affixed to the said land, or any building thereon.

Upon any sale as aforesaid of a lease by auction, the lessor may make usual and any other fair and reasonable conditions of sale, to duly and effectively carry out the intention of these presents, and in particular may provide for the payment by purchasers at the auction of a substantial deposit, and may also provide that, in the event of the purchaser refusing or neglecting to complete his purchase according to the terms and conditions thereof, he shall forfeit to the lessor such deposit, and pay to the lessor as liquidated damages a sum not exceeding one-half of the total deficiency (if any), during the term of years, of the rent agreed to be paid by the new purchaser at a subsequent sale by auction held in consequence of the default of the original purchaser, as compared with the rent that would have been reserved had such original purchaser not made default, together with all expenses attending the sale.

If, owing to the delay on the part of the valuers or otherwise, the new lease cannot be put up to auction before the expiration of the said term hereby granted, or if, owing to the purchaser at any auction held before the expiration of the said term (whether the original auction or a subsequent one held on account of the default of the purchaser to complete as hereinafter mentioned) refusing or neglecting to complete his purchase according to the terms and conditions thereof, the said new lease shall not be purchased before the expiration of the said term, then and in either of the said cases the new lease shall be put up to auction as soon as conveniently can be after the expiration of the said term hereby granted; and, if the purchaser at such last-mentioned auction shall make default as aforesaid, the said lease shall again be put up as soon as conveniently can be after such default, and so on; but in every such case the new term shall run from the date of the expiration of the term hereby granted, though the rent shall not begin to run until the purchaser obtains possession.

If there shall be no bid of or over the upset price of the annual groundrent as valued as aforesaid, then, at or (as the case may be) as from the expiration of the said term hereby granted, the said land hereby leased, with all buildings and improvements thereon, shall absolutely revert to the lessor, free from any payment or compensation whatever.

In the event of the term hereby created being determined by forfeiture, or otherwise than by the effluxion of time, the lessee shall not be entitled to any compensation whatever for buildings or improvements.

In the foregoing lease [or memorandum of lease] the words “buildings and improvements” shall be deemed to mean and include buildings and improvements constructed of durable material, and all fencing and, for agricultural land, substantial improvements of a permanent character as defined in section three of “The Land Act, 1885.”