executors, and successors paying to the Treasurer of the Province of Otago for the time being the yearly rent at the terms after-mentioned:

Firstly, The endurance of this lease shall be for the term of fourteen years from and after the first day of March, eighteen hundred and fifty-nine, but subject to its being terminated sooner in the event hereinafter mentioned.

Secondly, The yearly rent shall be thirty-four pounds ten shillings, being at and after the rate of ten shillings per foot of frontage to the beach road, (such frontage measuring sixty-nine feet), payable in equal proportions half-yearly during the period of the lease, except for the first year, for which no rent shall be due; commencing the payment of the first half year’s rent upon the first day of September, eighteen hundred and sixty, for the half-year immediately preceding.

Thirdly, This lease shall not be assigned, nor be assignable, nor shall it be lawful for the lessee to sublet the premises, without consent of the Superintendent of the Province for the time being.

Fourthly, The lessee shall be bound to erect at his own expense, upon the said ground, a building conform to a plan and specification prepared by the Provincial Civil Engineer, which is signed by the parties as relative hereto; and to have the said building completed and ready for the purpose of its erection, on or before the first day of March, Eighteen hundred and sixty; and the Government shall form a road in front of the building.

Fifthly, The building, when finished, shall be used for the purpose of a Bonded Store, or Queen’s Warehouse, for lodging goods therein for security of the Customs payable thereon; but should the whole of the said building not be at first required for such goods, the lessee shall be permitted, on obtaining the consent of the Collector of Customs at the Port of Dunedin, to use a portion of the said building as a public warehouse, in which goods may be lodged, kept, and secured; and it shall be lawful for the lessee, at his own expense, to increase the size of the said building, or to erect an additional building if the ground let admits thereof; provided always that the plan be approved of by the Superintendent of the Province for the time being.

Sixthly, The lessee shall be entitled to charge after the scale of charges in the Schedule hereto appended on goods stored in the said Bonded Store or Queen’s Warehouse for the security of the Customs; provided always that it shall be lawful for the Collector of Customs, from time to time, and as often as he shall think fit, to alter and vary, the charges for the storage of bonded goods, but only to the effect of assimilating them to the charges from time to time sanctioned for other Bonded Stores or Queen’s Warehouses within the Colony of New Zealand; provided also that in the event of the lessee feeling aggrieved by any such alteration or variance of such rates as will have the effect of diminishing the aggregate annual amount thereof, and the Superintendent shall refuse to allow him the remedy he may claim, it shall be in the power of the lessee, after six months’ notice to the Superintendent of his intention to give up the lease, to surrender it accordingly.

Seventhly, Upon the termination of the lease, whether by the expiry of the aforesaid term of fourteen years, or at an earlier period, the lessee, or his heirs, executors, or administrators, shall be paid at the date of such termination the value of the building or buildings erected by him as aforesaid; and for determining the value thereof, two arbitrators shall be mutually chosen by the Superintendent and the lessee, or his heirs, executors, or administrators, and the said arbitrators shall have power, in case of difference of opinion, to appoint an umpire, and the joint decision of the said arbitrators, or the decision of the said umpire, shall be final and binding on the parties.

Eighthly, No fire shall be kept nor candle nor combustible material lighted within any part of the said building or buildings used as a Bonded Store or Queen’s Warehouse.

IN WITNESS WHEREOF, these presents, written in duplicate, and having the Seal of the Province of Otago affixed thereto, are signed by the said William Cargill, and William Hunter Reynolds, both of the date first above written.

W. CARGILL.

WILLIAM H. REYNOLDS.

Sealed and signed by the said WILLIAM CARGILL, and WILLIAM HUNTER REYNOLDS, in the presence of us—

JOHN LOGAN, Clerk to Superintendent, Dunedin.

WILLIAM STUART, Assistant Clerk to Superintendent, Dunedin.