Fa—B.

6

Zealand Government, and all the materials used shall be the best of their respective kinds, and any materials which the Engineer shall disapprove of shall, if he shall so require, be at once removed from the Company's works. 8. The Company will provide at their cable works a separate and convenient room for testing and suitable batteries, and permit the Engineer to have free access to those works at all times during the manufacture, and to make use of the said batteries, and afford him all facilities for the inspecting, testing, and examining the cable, and all materials used in the manufacture thereof. 4. The Company will coil the cable when completed in a tank under water, and permit the Engineer to make use of the said batteries, and afford him all facilities for then testing the cable for insulation : the standard of insulation for the completed cable being not less than 200 megohms per nautical mile when reduced to a temperature of 75° Fahrenheit after five minutes' electrification; the tests to be taken at the actual natural temperature, and to be reduced by calculation to the standard specified; and the Company undertake that the cable, when completed and tested, shall be up to such standard. 5. The Company will, after the cable has been tested, if it shall be found up to the standard of insulation, ship it within about one calendar month from the date of these presents, in a suitable and thoroughly seaworthy steamer or sailing ship, classed Al at Lloyds for not less than seven years, to be provided by the Company at their own expense, and will carefully coil it in one or more, strong watertight tanks to be provided by the Company at their own expense, giving it during the process of coiling a good coating of chalk and water ; but the cable shall not be coiled until the tank or tanks, and the fittings thereof, shall have been approved of by the Engineer. 6. The Company will place the said batteries on board, and permit the Engineer to make use of them, and afford him all facilities for testing the cable for insulation; and if he shall not find it to be up to the standard of insulation hereinbefore mentioned, the Company will forthwith repair any defects, and do all such things as shall be necessary to bring the cable up to such standard; and, after the cable shall have been approved of and passed by the Engineer, will at all times while it shall be on board keep the cable in the tank or tanks covered with water. 7. The Company will, at their own expense, engage two competent persons to see that the cable in the tank or tanks is covered with water, and to attend to the cable during the voyage, and to superintend the taking of it out of the tank or tanks at Wellington. 8. The Company will use their best endeavours to deliver the said cable at Wellington, in New Zealand, within about four calendar months from the date of these presents. 9. Three weeks are to be allowed the Governor to take out and remove the cable and the tank or tanks (which shall become the property of the Governor) ; and as many days as the Governor shall require over and above the said period of three weeks on payment of ten pounds for every day over and above the said period. 10. The Company undertake that the cable when delivered at Wellington shall be in as good electrical condition as it was when it was approved of and passed by the Engineer before the sailing of the steamer or ship, and as soon as the cable shall have been removed from the steamer or ship, it shall be tested by some competent and impartial person appointed by the Governor, in the presence of one of the persons hereinbefore mentioned. 11. The Governor will pay to the Company for the cable and tank or tanks, and for the performance of the matters hereinbefore undertaken by the Company, the sum of nine thousand five hundred and seventy-five pounds, at the times and in the manner following, that is to say, six thousand three hundred and eighty-three pounds six shillings and eightpence, being two-thirds of the said sum, in London, upon production and delivery by the Company to the said Agent-General of a certificate by the Engineer that he has tested the cable on board the ship and has approved of and passed it, and on delivery also of the usual shipping documents ; and the Governor will pay the further sum of three thousand one hundred and ninety-one pounds thirteen shillings and fourpence, the balance of the said sum of nine thousand five hundred and seventy-five pounds, less such deductions, if any, as may be made from such sum of three thousand one hundred and ninety-one pounds thirteen shillings and fourpence as hereinbefore provided, within ten days after the production in London of a certificate in writing of the person so appointed by the Governor as hereinbefore mentioned that the cable has been delivered at Wellington in proper electrical condition, according to the standard hereinbefore mentioned. 12. The Governor will, at his own expense, in addition to any insurance he may think fit to effect on his own account, effect an insurance, in some office to be selected by the Agent-General, on the cable and the tank or tanks in the steamer or ship, for the benefit of the Company, in the sum of three thousand one hundred and ninety-one pounds thirteen shillings and fourpence, against fire and sea risks, and hand the policy to the Company. 13. The Engineer for the purposes of this agreement shall be Josiah Latimer Clark, Esquire, or him failing, Henry Charles Forde, Esquire ; and the Governor agrees that the Engineer and the person to be appointed under clause 10 shall duly give such certificates as hereinbefore mentioned so soon as the conditions upon the performance of which the Company is entitled to the same shall have been duly fulfilled. 14. Any question or difference between the parties hereto as to the right of the Company to any certificate or certificates under these presents, or as to any other matter or thing arising under or out of this agreement, shall, upon the application of either party, be referred to arbitration in England, pursuant to the provisions of " The Kailway Companies Arbitration Act, 1859," and as if the Company were a railway company. 15. No individual responsibility shall be incurred by the Governor, or by Isaac Earl Featherston, the Agent-General for the Government of New Zealand, by whom on behalf of the Governor it is intended that these presents shall be signed. In testimony whereof the said Isaac Earl Featherston has signed these presents, in the name and on behalf of the said George Augustus Constantine, Marquis of Normauby, and the Company have hereunto affixed their common seal. I. E. Feathebston.