I—3a

179

such securities as according to the provisions hereinbefore and hereafter contained should be executed, severally execute or cause to be executed by all necessary parties valid and effectual assurances of the several properties hereby contracted to be bought and sold to the purchasers or as they may direct all such assurances and all such mortgages shall be prepared by and at the expense and costs of the party or parties requiring the same. (12.) All mortgages hereinbefore specified as securing the unpaid balance or balances of purchasemoney shall contain all such covenants, conditions, and agreements as the solicitor for the vendors or either of them may consider necessary, and. inter aim, shall contain the following provisions :— (a.) Covenants by the mortgagors to pay the principal moneys at the expiration of not less than five years from the completion of the purchase in respect of which such mortgage is given. (b.) A covenant by the mortgagors to pay interest on the principal moneys comprised in such mortgage by equal half-yearly payments on dates to be regulated from the date of completion aforesaid at the rate of seven pounds per centum per annum, but reducible to five pounds per centum per annum if punctually paid within twenty-one days after any of the dates specified for payment thereof. (c.) Usual covenants by the mortgagors to keep the premises hereby mortgaged in good order, condition, and repair, to pay the rent, and observe, perform, fulfil, and keep all and singular the covenants, conditions, and agreements respectively reserved, contained, or implied in any lease or leases forming part of such security ; to observe the provisions of the Noxious Weeds Act, and to insure both as against fire and accident within the covenant declared to be implied in mortgages by the Land Transfer Act, 1908. (d.) A power of sale on the part of the mortgagee in case of default being made and continued for a period of twenty-one days. (13.) In addition to the specific securities mentioned in paragraph No. 12 hereof the aforesaid company in the event of its being the mortgagor shall, if required so to do, execute as collateral security to the first vendor or to the mortgagees taking over his securities valid and effectual mortgage-debentures over the uncalled capital of the said company securing the principal interest and other moneys payable under such mortgages. (14.) It shall be lawful for the purchasers if they shall elect so to do to purchase the whole of the properties specified in the said Schedules at the times hereinbefore specified, for cash, in which case the provisions relating to the constitution of the said company shall no longer apply. The vendors shall accept such cash and shall forthwith execute the assurances mentioned in paragraph No. hereof as directed by the purchasers: Provided always that in the event of the exercise of the option to pay cash in terms of this paragraph the purchasers shall be entitled to receive from the vendors the same brokerage as they would have been entitled to under paragraph No. hereof had they floated the company in terms of these presents. (15.) It is hereby expressly agreed and declared that unless and until the purchasers shall elect to exercise their right to purchase for cash under the provisions of paragraph No. 14 hereof, and of such election shall give to the vendors writtenjnotice, no personal liability to purchase the said properties mentioned and described in the said First, Second, and Third Schedules shall attach to the purchasers, it being understood that so far as they are concerned these presents witness a right or option conferred upon them to take over and pay for the said several properties, or any or either of them, within the terms in the manner and on the conditions hereinbefore contained. (16.) In consideration of the premises and of the sum of five pounds paid to each of them by the purchasers (the receipt whereof is hereby severally acknowledged) they the vendors do hereby covenant and agree not to withdraw from this [agreement within the periods for completion hereinbefore respectively specified. As witness the hands of the parties hereto. THE FIRST SCHEDULE HEREINBEFORE REFERRED TO. All that parcel of land situate in the Mokau district, containing 46,000 acres, more or less, being Sections 3, 4, 5, 7, 7a, 10, 11, 14, 15, 18, 19, 20, 21, 22, part Sections 16 and 17 of Block If and the whole of Blocks 10, Ij, and 1h of the Mokau-Mohakatino Block. THE SECOND SCHEDULE HEREINBEFORE REFERRED TO. All that parcel of land situate in the Mokau district, containing 12,407 acres, more or less, being of the block of land known as Mangapapa B No. 2 Block No. 6226b No. 2, as the same is more particularly set forth and described in memoranda of lease, Registered Nos. 1188, 1239, 1240, and 1241, and the freehold under transfer registered No. , and being all the land in certificate of title, Vol. 20, folio 226, together with an option to purchase the mineral rights held by the said George Herbert Stubbs under certain Native leases, together with all plant, machinery, live-stock, and other effects more particularly enumerated in the said option, subject to memorandum of sublease over 11.000 acres, part thereof, to James Fraser and another.