Provisions as to Renewals.

Three years before the end of the term of a lease a valuation of the land and all substantial improvements is made by arbitration. After the award of the arbitrators, and at least three months before the expiry of the lease, the lessee chooses whether he will accept a fresh lease for twenty-one years at a rental of 5 per cent. on the gross value, as fixed by the arbitration, after deducting the value of the substantial improvements of a permanent character.

If the lessee does not accept a renewal of his lease, a new valuation of the improvements is made, and the lease is submitted to public tender for twenty-one years at an upset rent not greater than the rent at which the lease was originally offered. If any other page 86 person than the lessee is declared the purchaser, he has to pay to the original lessee the value of the improvements.

In the event of a lease not being sold, the existing lessee may continue in occupation from year to year, so long as he pays the rent and fulfils the covenants of his lease, until a new lessee takes up the lease. At any time during his temporary occupation the existing lessee can obtain a renewed lease for a further period of twenty-one years on the terms first offered. An existing lessee gets a month's notice of intention to sell the lease of the land he occupies, and is allowed during that time to elect to accept a new lease on the terms first offered. All the provisions relating to original leases apply to renewed leases, the only difference being that renewed leases are for twenty-one instead of thirty years.