The lessee shall, on the signing of this present contract, as security for the due payment of the rental and the proper working and redelivery of the mines in an uninjured condition, deposit a sum of 5000 rixdollars in the private bank of Copenhagen, in such manner that the Minister of Justice retains the certificate of deposit in his possession, and can, without trial or sentence, and without the lessee’s authority, take them out of the private bank, which institution shall be forbidden to return them to the lessee or others without the Justice Minister’s permission.
As long as the above-mentioned amount is deposited in the private bank the interest of the sum may, without let or hindrance from the Minister of Justice, be paid to the lessee or his representatives.
On the expiry of this leasing contract and the redelivery of the sulphur mines in an uninjured state, the Minister of Justice shall be bound to return the certificate of deposit to the lessee or other duly authorised persons.
VII. Should the rental not be paid at the proper times, and should the lessee destroy the mines, he (the lessee) shall lose the rights conceded to him by this contract, and the Minister of Justice shall in such case be empowered to take from him the lease (eject him from the mines), and the deposit money be forfeited to the Iceland Land Fund (State Fund). Should, however, a breach of contract take place only through omission to pay the rental, and the collective amount of the rentals still to be paid be less than the deposit, the Minister of Justice will refund the difference.
VIII. Should the lessee not have removed, within two years from the expiry of this contract, or from the date of its annulment (see § 7), all buildings, machinery, and the like put up at the mines, they shall become the property of the State without indemnity.
IX. Disputes arising as to whether the lessee’s treatment of the mines is destructive to them, shall be settled by arbitration, each of the contracting parties choosing one man, and these latter in case of disagreement to choose an umpire. If from any cause an arbitration cannot be obtained, the parties at issue are empowered to appeal to the law courts; as likewise in all other disputes arising out of this contract, in which cases the Royal Supreme Court of Copenhagen shall be the proper tribunal; for which reason the lessee, on signing this contract, shall appoint a Copenhagen resident, who on his behalf shall receive summonses for his appearance. Should the Minister of Justice think fit to take law proceedings against him in Iceland, he (the lessee) shall be bound to receive summonses at the sulphur mines for his appearance at the Iceland courts.
X. The expense of drawing up this contract, with the stamped paper and registration, as well as the expense of surveys on the delivering over and the delivery back of the mines mentioned in this contract, shall be borne by the lessee.
The contract shall be drawn up in duplicate, of which the one copy is held by the Minister of Justice and the other by Mr A. G. Lock.
On the above conditions I, Alfred G. Lock, of London, have signed the present contract.
Copenhagen, 13th April 1872.