Subject to the provisions of clause numbered eight (8) hereof the Board will sell and the purchaser will purchase all that piece of land more particularly described in the schedule hereto and delineated in the plan drawn hereon or annexed hereto bordered red.

The said piece of land is at present leased by the purchaser from the Board under memorandum of lease bearing date the tenth day of June one thousand nine hundred and thirty-three and registered under number 8298 Hawke’s Bay Registry and is held by the purchaser upon the conditions set out in the said memorandum of lease which upon completion of the sale evidenced hereby will merge in the fee-simple of the said piece of land.

The purchase money shall be the value of the said piece of land without taking into account any improvements thereon and shall be fixed by arbitration by two arbitrators one to be appointed by the Board and one to be appointed by the purchaser or in the event of such arbitrators being unable to agree by their umpire in manner provided for by the Arbitration Act 1908 and these presents shall be deemed to be a submission under that Act. If such arbitrators are unable to agree the umpire shall be bound to make a valuation not exceeding the higher or less than the lower of the valuations made by the two arbitrators respectively. Such arbitration shall not be made until legislative authority enabling the Board to carry out this agreement is obtained as set out in clause numbered eight (8) hereof but shall be made within fourteen (14) days thereafter.

Possession of the said piece of land shall be given and taken not later than one calendar month after the legislative authority hereinbefore mentioned has been obtained and in the meantime the said memorandum of lease shall subsist and rent thereunder shall be duly apportioned for any current period as at the date of such possession.

On the said date of possession the purchaser will pay to the Board the purchase money as set out in clause numbered three (3) hereof in cash and contemporaneously therewith the Board will hand to the purchaser a registrable memorandum of transfer or other assurance of the fee-simple of the said piece of land free of all encumbrances. If there shall be any delay in payment of the purchase money interest shall be paid to the Board thereon at the rate of five pounds (£5) per centum per annum from the said date of possession until the purchase money is paid but without prejudice to the next following clause hereof.

If default shall be made by the purchaser in payment of the purchase money and interest (if any) thereon or any part thereof for the space of three calendar months after the time hereinbefore appointed for giving and taking possession then the Board may but without prejudice to its right of action for the recovery of the purchase moneys and interest and all expenses incurred owing to such default)—

The memorandum of transfer referred to in clause numbered five (5) hereof shall contain a provision that it shall not be lawful for the purchaser by virtue of any Fencing Act then or thereafter to be in force in New Zealand or otherwise to require or compel the Board to aid in or contribute in any way towards the cost of erecting or maintaining any dividing fence between the said piece of land or any part thereof and any land adjacent thereto being the property of the Board with this proviso that nevertheless such provision is intended for the benefit and protection of the Board and its successors and shall not enure for the benefit of any other person or persons whomsoever.

This agreement is entered into subject to the following condition that the Board shall be able to obtain legislative authority to carry out the same. If such legislative authority shall be obtained during the next ensuing session of the General Assembly of New Zealand or at any later session (and the Board hereby undertakes that it will use its best endeavours to obtain such authority during the next ensuing session) then this agreement shall ipso facto become a binding agreement on the part of both parties hereto but if the General Assembly of New Zealand shall definitely and conclusively refuse to pass any Bill promoted and placed before Parliament at the next ensuing or any later session for the purpose of obtaining the legislative authority aforesaid it shall become ipso facto void and of no effect. In the meantime neither party shall have the right to withdraw from this agreement.

The costs of and incidental to the preparation and passing of the necessary Act of Parliament to give the Board legislative authority to enter into and carry out this agreement including all legal advertising survey and/or other costs involved in the preparation of such Act and the preparation and completion of this agreement and incidental to the above matters shall be borne and paid by the purchaser it being the true intent and meaning of this provision that the Board shall not be put to any expense whatever in and about the matters hereby provided for or contemplated.